At a glance
IVVW charges 0.25% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $329.5M in assets, the 8th largest of that group; it paid 18.31% of its price in distributions over the past 12 months, monthly. Over the past year it returned +14.8% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds.
The short version
The iShares S&P 500 BuyWrite ETF (IVVW), from BlackRock, holds the iShares Core S&P 500 ETF and sells one-month call options on the S&P 500 to generate income. It tracks the Cboe S&P 500 Enhanced 1% OTM BuyWrite Index. Its trailing yield was 18.31% as of October 27, 2026, paid monthly. Its 0.25% expense ratio is well below the 0.86% average of the buffer funds it was compared with. The trade-off is that its upside is capped.
Price history
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IVVW +14.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IVVW official prospectus, to Dec 31, 2025 | — | +11.61% | — | — | — | +13.33% |
| S And P Total Market Index index, same period | — | +17.05% | — | — | — | +18.12% |
| Cboe S And P500Enhanced1OTM Buy Write Index index, same period | — | +11.84% | — | — | — | +13.60% |
| IVVW price data to Oct 27, 2026 | +11.8% | +14.8% | — | — | — | +14.0% |
- Over the year to Oct 27, 2026, IVVW returned +14.8%, 1st of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.7%); its best was 2025 (+11.7%).
- The deepest fall in its price history was 16.8% (Feb 18, 2025 to Apr 8, 2025), recovered by Sep 9, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.8% | — |
| 2025 | +11.7% | +11.61% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $5.4400 | |
| 2025 | $8.4500 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 100.14% of assets.
| Fund held | Weight | |
|---|---|---|
| iShares Core S&P 500 ETF | 100.14% |
By country
United States 100.14%By asset type
Stocks 100.14%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $59.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.96%, +0.74%, +1.40%.
How it works
IVVW, from BlackRock's iShares, tracks the Cboe S&P 500 Enhanced 1% OTM BuyWrite Index. That index follows a "buy-write," or covered call, strategy: own S&P 500 stocks and sell call options on them. A call gives its buyer any gains above a set level, the strike price. IVVW is a fund of funds. As of July 31, 2026, about 100% of its assets sat in the iShares Core S&P 500 ETF, which weights companies by their market value.
Each month, on the business day before the options expire, the fund buys back its old calls and sells new one-month calls on the S&P 500 Index, covering its full holding. The strike sits near 101% of the index's level. If the premium (the cash the buyer pays) would be under five basis points, or hundredths of a percent, of the index's value, the strike drops to about 100%. The fund may use other dates or strikes than the index.
The trade-off is lopsided: the fund gives up gains above the strike but takes the full loss when stocks fall, softened only by premiums. It aims to pay monthly distributions from premiums and dividends, capped near 2% of the fund's value each time. Some payouts are likely to be a return of capital, meaning investors' own money handed back.
What it really costs
- IVVW charges 0.25% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.22% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IVVW | $26 | $80 | $141 | $318 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
Its main purpose is turning S&P 500 exposure into large monthly payouts, and it gives up some growth to do so.
IVVW could add steady monthly cash flow drawn from S&P 500 stocks. Its trailing 12-month yield was 18.31% as of October 27, 2026. The prospectus expects part of the payouts to be return of capital, and option income is usually taxed as ordinary income. The fund launched March 14, 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its deepest drop, 16.8%, ran from February 18 to April 8, 2025. It recovered by September 9, 2025, about five months later. Anyone selling shares during that stretch would have sold at lower prices. Its only full calendar year, 2025, returned 11.61%, while the S&P Total Market Index returned 17.05%.
The expense ratio is 0.25%, about $26 in the first year on $10,000 in the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly payouts tied to the S&P 500. The trailing yield was 18.31% as of October 27, 2026.
- Cost-conscious income seekers. Its 0.25% expense ratio compares with a 0.86% average for the buffer funds it was compared with.
- Those willing to give up some upside for a calmer ride. One-year volatility was 8.6% and beta 0.57 as of October 27, 2026.
Look elsewhere if
- Investors who want full stock-market gains. In 2025 it returned 11.61%, while the S&P Total Market Index returned 17.05%.
- Anyone who needs downside protection. Unlike buffer funds, it takes the full loss when stocks fall, as in its 16.8% drop in early 2025.
- Taxable investors who prefer qualified dividends. Option income is usually taxed as ordinary income, and payouts may include return of capital.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IVVW this fund | 0.25% | $329.5M | +14.8% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does IVVW pay monthly dividends?
Yes. IVVW makes monthly distributions funded by option premiums and dividends from the iShares Core S&P 500 ETF. Each payout is capped at about 2% of the fund's net asset value when it is set. Over the 12 months to October 27, 2026, it paid $8.25 per share, a trailing yield of 18.31%. The prospectus says payouts are likely to exceed earnings, so part may be return of capital rather than income.
Is IVVW good for retirement income?
It may suit retirees who value large monthly payouts and accept giving up some growth. The trailing yield was 18.31% as of October 27, 2026, and the expense ratio is 0.25%. But it takes the full loss when stocks fall: it dropped 16.8% in early 2025 and needed about five months to recover. It launched in March 2024, so it has never been through a long bear market.
What's the difference between IVVW and the iShares Core S&P 500 ETF?
IVVW owns the iShares Core S&P 500 ETF and also sells monthly call options on the S&P 500. Those options bring in income but cap gains above a strike near 101% of the index each month. In strong markets this means lower returns: IVVW returned 11.61% in 2025, while the S&P Total Market Index, a broad US stock benchmark, returned 17.05%. Losses are not reduced beyond the premiums collected.
How is IVVW different from buffer ETFs like BUFR?
They use options for different goals. Buffer funds such as the FT Vest Laddered Buffer ETF (BUFR) use options to limit losses over a set period. IVVW sells calls for income and has no loss buffer. IVVW is cheaper, at 0.25% compared with 0.95% for BUFR. In the year to October 27, 2026, IVVW's price-based return was 14.8% and BUFR's was 11.6%. BUFR is much larger and has a longer record.
Why is IVVW's yield so high?
IVVW's yield is high because it pays out the premiums it collects each month from selling S&P 500 call options, on top of stock dividends. That income comes at a cost: the fund gives up gains above each month's strike price. The prospectus also expects payouts to exceed earnings, so part of the 18.31% trailing yield as of October 27, 2026, may be return of capital rather than profit.