Gateway Fund aims to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments by investing in common stocks, while also selling index call options and purchasing index put options.
Is Gateway Fund a good investment?
Gateway Fund attempts to capture some of the equity market’s upside while delivering downside protection using index options. The managers effectively implement this time-tested approach, but the strategy has barely evolved over its long history, causing its appeal to dwindle relative to some peers. There is no growth data available.
Is gateway mutual fund option writing?
Morningstar classifies the fund as option writing. The fund’s equity holdings fall mostly in the large-cap blend asset class. Gateway is an alternative mutual fund that employs strategies like those used by hedge funds and other alternative funds.
