Analysis

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About iShares Trust iShares Russell 2000 BuyWrite ETF

IWMW is designed to mirror the performance of an index that combines the iShares Russell 2000 ETF with the sale of one-month call options to generate income. This strategy enables the fund to benefit from market movements, with a specific focus on US small-cap stocks. The fund actively manages its options positions by adjusting strike prices to optimize returns. Additionally, IWMW utilizes European style call options and ensures full coverage by writing call options equivalent to the full notional number of shares of the Underlying Fund, striving to enhance income generation within the funds investment strategy. It selects call options closest to 102% of the Option Indexs value one day before the roll date, with adjustments made if premiums dip below certain parameters. Monthly distributions consist of option premiums and dividends capped at 2% of the Fund's NAV per month. While the fund strives to maximize income potential, it is important to note that it also completely shares in the downturns experienced by the Underlying Fund.