News & Insights

Option-Based Mutual Funds Skyrocketed Since 2000

by The MAI TeamFebruary.18.2015

A February 18, 2015 article in Daily Alts covered an Option-Based Mutual Fund study commissioned by the Chicago Board Options Exchange (CBOE) and overseen by INGARM (Institute for Global Asset and Risk Management).  The study highlighted the growth in the number of option-based mutual funds since 2000 when there were 10 option-based mutual funds, versus at the end of 2014, when the number had grown to 119.


The study documents how investment funds are using options to provide yield to investors.  Also, in managing downside risk, mutual fund investors can get a reference point.  Readers can see how funds that use options perform during market cycles. This is measured within the study by the maximum drawdown of option-oriented mutual funds compared to various indices such as the S&P 500.  To learn more, click this link >> for the original article.



The views expressed in this article are those of the author and should not be attributed to MAI.  Neither the information nor any views expressed should be considered as investment advice or constitute as a recommendation to buy or sell any security, strategy or product nor should it be considered as a forecast of future events or a guarantee of future results.


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