AdvisorShares STAR Global Buy-Write ETF(AMEX:VEGA)

VEGA is a fund-of-funds that invests globally and uses a well-known options strategy applied across asset classes in its aim for consistent returns in up or down markets. ETPs are selected based on size, historical track record, diversification among indices, the correlation of an index to other indices and an ability to write covered call options. Individual securities are screened using fundamental, behavior, qualitative and macro-economic data. Covered-call strategies have been available to ETP investors for years, but VEGA, launched in September 2012, offers some new twists. First, it covers a broader range of assets including emerging market equities as well as T-bonds and metals. VEGA also buys out-of-the-money protective puts on some underlying assets. This strategy earns income from the option premiums while forgoing some upside and hedging some downside. Investors should note that covered calls don`t do well when the underlying roars up.