FGSI vs IVVW

FGSIDFT Vest Growth Strength & Target Income ETF

IVVWAiShares S&P 500 BuyWrite ETF

In short

FGSI Most S&P 500 covered-call funds sell calls on the index they own. FGSI owns roughly 50 growth-and-quality screened US stocks and writes calls on the S&P 500 instead, aiming for monthly income at a set spread over the index dividend yield.

IVVW BlackRock's version of the covered call: hold the whole S&P 500 through the iShares Core fund, sell one-month index calls struck 1% out of the money, pay the premium out monthly. All for a quarter-point fee.

Stated mandate

FGSI The Fund seeks current income first and capital appreciation second. It primarily holds U.S. exchange-traded stocks selected to track The Growth StrengthTM Index and sells U.S.-traded calls on the S&P 500® Index or ETFs tracking it.

IVVW The fund seeks to track an index strategy that holds the iShares Core S&P 500 ETF and sells one-month call options primarily on the S&P 500 Index to generate income. The short option position is intended to be offset by the fund’s long position in the underlying ETF.

Why people hold it

• FGSI The income goal is written into the prospectus: an annual rate 8% above the S&P 500's current dividend yield, paid out monthly.sec.gov
• The equity sleeve isn't a plain index tracker. Roughly 50 US stocks screened for growth, profitability and quality via First Trust's Growth Strength Index.ftportfolios.com
• Because the calls sit on the S&P 500 rather than on its own shares, no individual holding gets called away, though index moves still drive the option leg.sec.gov

• IVVW Costs 0.25% a year against a category median near 0.60%. On an income strategy, that is less of the option premium quietly leaking out the door.
• The calls sit 1% out of the money, so a slice of each month's rally still belongs to shareholders before the cap bites. At-the-money writers give that up.cboe.com
• Rules over hunches: it tracks a Cboe index that pairs a long position in the iShares Core S&P 500 ETF with a short monthly S&P 500 call, rolled on a set schedule.cboe.com
• Inside a crowded covered-call field where fat fees are the norm, this is one of the tighter builds in its peer group.

Worth knowing

• FGSI At 0.85% a year it costs more than the typical S&P 500 options-income fund, where the median is nearer 0.60% and big peers like IVVW and GPIX charge a fraction of that.sec.gov
• It launched in mid-2025 and is still a small, lightly traded fund, so trading costs can run wider than in the category's established names.
• First Trust discloses that distributions may include return of capital, meaning part of a payout can be capital coming back rather than income earned.sec.gov

• IVVW Covered calls trade upside for income. Above the strike, the month's gain is capped, and the premium cushions losses rather than blocking them.cboe.com
• Monthly payouts come from option premium, so they move with volatility instead of arriving as a fixed amount.
• Launched in 2024 and moderately traded, so the live record is short and spreads can run wider than the category's biggest names.

Full FGSI profile⁠

Full IVVW profile⁠