FYEE vs IVVW

FYEEAFidelity Yield Enhanced Equity ETF

IVVWAiShares S&P 500 BuyWrite ETF

In short

FYEE Fidelity's entry in the S&P 500 covered-call scrum: own the large-cap equity book, sell calls against it for income, and charge roughly half the fee of the typical fund in this crowd.

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

FYEE The fund seeks equity-market exposure and capital appreciation while using a disciplined covered-call program to generate income.

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

• FYEE Fee of 0.31% against a cohort median of 0.60% for S&P 500 options-income funds. In a strategy where premium income is the whole point, less leakage to costs matters.
• The mandate is equity first: capital appreciation and market exposure, with a disciplined covered-call program layered on for income rather than income chased at any cost.fidelity.com
• Does exactly what its documents say it does, and sits in the top quartile of a crowded S&P 500 income group on our review.
• Cheaper than the marquee names it competes with, including GPIX (0.35%), BALI (0.35%) and SPYI (0.68%).

• 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

• FYEE Covered calls swap upside for premium. When the S&P 500 runs hard, the calls written against the portfolio limit how much of that climb the fund keeps.fidelity.com
• Income lands quarterly, not monthly, so the cash arrives in four larger drops rather than a steady drip.
• Launched in 2024 and moderately traded, so the track record is short and spreads can run wider than the category's largest funds.

• 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 FYEE profile⁠

Full IVVW profile⁠