iPath® CBOE S&P 500 BuyWrite Index(SM) ETN

The iPath® CBOE S&P 500 BuyWrite IndexService Mark ETN offers investors cost-effective exposure to the CBOE S&P 500 BuyWrite IndexService Mark, commonly known as the BXM IndexService Mark (the "Index"). The Index is designed to measure the total rate of return of a hypothetical "buy-write", or "covered call", strategy on the S&P 500® Index. This strategy consists of a hypothetical portfolio consisting of a "long" position indexed to the S&P 500® Index (i.e. purchasing the common stocks included in the S&P 500® Index) and the sale of a succession of one-month, at– or slightly out-of-the-money S&P 500® Index call options that are listed on the Chicago Board Options Exchange ("CBOE").
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The following is a chart of the hypothetical average call premiums earned from the deemed sale of a succession of one-month, at-the-money or slightly out-of-the-money call options on the S&P 500® Index. This monthly deemed income component combined with the monthly return on a long position in the S&P 500® Index would equal the strategy's monthly return.

Monthly Call Premiums: CBOE S&P 500 BuyWrite IndexSM (% of S&P 500® Index underlying value)  (As of 01/29/2010)
BWV Sector Weightings chart

Sources: CBOE, S&P, BlackRock 06/88-01/10.


Index returns are for illustrative purposes only and do not represent actual iPath ETN performance. Index performance returns do not reflect any investor fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.