About AdvisorShares STAR Global Buy-Write ETF (VEGA)

The AdvisorShares STAR Global Buy-Write ETF (VEGA) is a unique investment vehicle that offers investors exposure to a global portfolio of stocks while employing a buy-write strategy. The fund aims to provide consistent income and potential capital appreciation by writing covered call options on a significant portion of its portfolio. This strategy allows investors to generate income from the premiums received from selling these options contracts. Additionally, it provides some downside protection as the option premiums can help offset potential losses in the underlying stocks.

VEGA's investment strategy is focused on generating a high level of income while minimizing risk. The fund primarily invests in large-cap stocks from various sectors and geographies, providing investors with a diversified portfolio. By writing covered calls on these stocks, the fund is able to capitalize on the income potential of the options market. The strategy involves selling call options with strike prices above the current market price of the underlying stocks. If the stock price does not exceed the strike price at the time of expiration, the options expire worthless, and the fund keeps the premium received. Should the stock price exceed the strike price, the fund may be obligated to sell the shares at the strike price, potentially limiting the upside potential.