NEW YORK ( TheStreet) -- In recent years, buy-write funds have outpaced the S&P 500 by wide margins. That's hardly surprising. The funds are designed to excel in markets that are flat or down. "If stocks return less than 4% or so, odds are good that we will outperform," says Donald J. Mulvihill, portfolio manager of Goldman Sachs U.S. Equity Dividend and Premium Fund (GSPAX), which uses buy-write techniques.The buy-write funds aim to avoid big losses in downturns and crank out modest returns in bull markets. Over the long term, buy-write strategies have about matched the S&P 500 while taking less risk. Because they don't always track the overall stock market, buy-write funds can help diversify portfolios.
Buy-Write Funds: The Right Call in Any Market
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