LQDW vs MAGY

LQDWAiShares Investment Grade Corporate Bond BuyWrite Strategy ETF

MAGYDRoundhill Magnificent Seven Covered Call ETF

In short

LQDW Covered calls, but on bonds. LQDW owns iShares' flagship investment-grade corporate bond fund and writes monthly calls against it, paying distributions monthly, at less than half the option-income cohort's median fee.

MAGY The Magnificent Seven with a weekly options sleeve: MAGY owns Roundhill's equal-weight seven-stock fund and sells calls against it for income, at 0.99% net of a waiver through April 30, 2028.

Stated mandate

LQDW The fund seeks to track a strategy holding LQD while writing monthly covered calls to generate income.

MAGY The Fund's primary objective is current income, with a secondary objective of gaining exposure to the return of the Roundhill Magnificent Seven ETF.

Why people hold it

• LQDW At 0.34%, it undercuts the typical option-income fund by well over half (cohort median 0.75%), so less of the premium collected leaks out as fees.
• One ticker buys the whole trade: shares of LQD plus a rules-based monthly call overlay. No options approval, no roll dates to babysit.ishares.com
• A thin niche. Most option-income funds write calls on stock baskets; this one sits on investment-grade corporate credit instead.
• Distributions land monthly, and since its 2022 launch the fund has stuck closely to its stated strategy, among the tighter implementations in its peer group.

• MAGY Buys MAGS, the equal-weight basket of all seven mega caps rebalanced quarterly, then writes calls on that one ticker instead of juggling seven single-stock overlays.roundhillinvestments.comroundhillinvestments.com 2
• Calls are sold out of the money, so the basket has room to rise to the strike before gains are capped. Premium goes out as weekly distributions.roundhillinvestments.comroundhillinvestments.com 2
• The fee is waived from a 1.19% gross rate to 0.99% through April 30, 2028, a long runway for a fund that launched in 2025.

Worth knowing

• LQDW Written calls cap the upside. If corporate bonds rally hard, the premium collected is the consolation for price gains handed to the call buyer.
• Premium cushions, it does not shield. Widening credit spreads or rising rates still hit the underlying bond portfolio.
• Mid-sized and moderately traded rather than a giant, so spreads can run wider than in the biggest option-income names, especially in fast markets.

• MAGY That 0.99% sits above the median of its 25-fund options-income group; KNG charges 0.74% and EFAA 0.39% net of a waiver through August 31, 2027.
• Seven stocks, non-diversified. The overlay trims upside above the strike while the basket's drawdowns still flow through to you.roundhillinvestments.com
• Young (April 2025) and among the thinner-traded names in its category, which lands in the lower half of that peer set. Limit orders earn their keep.

Full LQDW profile⁠

Full MAGY profile⁠