iShares MSCI EAFE Min Vol Factor ETF (EFAV) Covered Calls
The iShares MSCI EAFE Min Vol Factor ETF (EFAV) tracks the MSCI EAFE Minimum Volatility (USD) Index. It provides exposure to developed international markets (excluding the U.S. and Canada) by selecting equities that historically exhibit lower volatility than the broader market. Designed to reduce portfolio risk while maintaining equity exposure, it serves as a defensive, income-oriented tool for international diversification.
You can sell covered calls on iShares MSCI EAFE Min Vol Factor ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for EFAV (prices last updated Fri 4:16 PM ET):
| iShares MSCI EAFE Min Vol Factor ETF (EFAV) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 88.79 | -0.25 | 83.60 | 93.78 | 484K | - | 8.4 |
| Covered Calls For iShares MSCI EAFE Min Vol Factor ETF (EFAV) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 89 | 0.55 | 93.23 | -4.5% | -74.7% | |
| May 15 | 89 | 1.30 | 92.48 | -3.8% | -27.7% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
Want to make money with covered calls? Sign Up For A Free Trial
Core Business and Products
EFAV utilizes a systematic factor-based approach to select and weight securities that collectively minimize portfolio volatility. Unlike traditional market-cap-weighted international ETFs, the fund tilts toward defensive sectors—such as consumer staples, healthcare, and utilities—while underweighting highly cyclical industries. This focus aims to provide smoother returns and smaller drawdowns during periods of international market turbulence.
Top 3 Optionable Holdings
The fund’s performance is anchored by stable, large-cap international companies. The following holdings are among the largest in the fund that also maintain relatively liquid options markets:
These companies are global leaders in healthcare and energy. As they maintain the most liquid options chains within the fund’s international portfolio, they are the primary choices for investors seeking to generate yield via covered calls or hedge against regional volatility.
Competitive Landscape
EFAV competes in the international low-volatility space. Its primary optionable competitors include:
- Invesco S&P International Developed Low Volatility ETF (IDLV): Competes by focusing on a pure "low-vol" stock selection methodology within developed markets.
- Goldman Sachs ActiveBeta International Equity ETF (GSIE): A multi-factor alternative that balances volatility, value, and momentum rather than focusing solely on low-volatility.
- iShares MSCI Emerging Markets Min Vol Factor ETF (EEMV): Frequently used alongside EFAV to provide a comprehensive, low-volatility international sleeve covering both developed and emerging markets.
Strategic Outlook and Innovation
EFAV serves as an evergreen, defensive core holding. While it may lag during rapid "risk-on" bull markets, the fund remains a transparent, efficient vehicle for investors looking to mitigate the higher volatility historically associated with non-U.S. developed equities. Its disciplined, factor-based strategy helps navigate global economic cycles by prioritizing fundamental stability over pure-growth speculation.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BW covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | PTON covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | USO covered calls | |
| 5. | SPY covered calls | 10. | TLT covered calls | 5. | WULF covered calls | |
Want more examples? EFAS Covered Calls | EFAX Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
