Equity Risk: The value of the Fund's options are based on the value of the underlying stocks, so the Fund is exposed to equity risk that the value of the stocks underlying options held by the Fund will fall. If the value of the stocks underlying the Fund’s options increases, however, the Fund’s returns will not increase accordingly.Implied Volatility Risk. When the Fund writes options and receives premium it also incurs corresponding liability representing the value of the options until the options cash settle or expire worthless. The options values are partly based on the volatility used by dealers to price such options, so increases in the implied volatility of such options will cause the value of such options to increase, which will result in a corresponding increase in the liabilities of the Fund and a decrease the Fund’s NAV.
ALPS Launches U.S. Equity High Volatility Put Write Index Fund
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