Voya Global Advantage and Premium Opportunity Fund: A Stable and Predictable Investment

In the dynamic world of investing, it's easy to get drawn to flashy, high-growth stocks that promise astronomical returns. However, seasoned investors know that stability and predictability are the hallmarks of a solid investment. The Voya Global Advantage and Premium Opportunity Fund (IGA) embodies these qualities, making it an attractive choice for those seeking a reliable and consistent return on their investment.

The Voya Global Advantage and Premium Opportunity Fund, launched in 2005, has a proven track record of delivering steady performance. As of August 31, 2024, the fund's average annual total return at NAV for the five-year period was 7.49%. This consistent performance is a testament to the fund's strategy and management.

One of the key strategies employed by the fund is selling call options on selected security indexes and ETFs. This strategy generates additional income for the fund, contributing to its high level of income objective. By selling call options, the fund receives a premium, which is added to its income. This strategy also helps manage risk by providing downside protection in case of market declines. If the underlying security's price falls, the fund's option premium increases, offsetting potential losses.



Another crucial aspect of the fund's strategy is its currency hedging. As of August 31, 2024, the fund's top country weightings were dominated by the United States (69.76%), with Japan (6.92%) and the United Kingdom (3.58%) rounding out the top three. This concentration in developed markets suggests a focus on stable currencies. The fund's strategy involves selling call options on selected security indexes and/or ETFs, on an amount equal to approximately 50–100% of the value of the Fund’s common stock holdings. This hedging strategy helps to reduce the fund's exposure to currency fluctuations, thereby minimizing potential losses from adverse currency movements.



The fund's strategy of selling call options on selected security indexes and ETFs, along with its currency hedging, contributes to its performance in several ways. By selling call options, the fund receives an upfront premium, which acts as an additional source of income. This strategy can help to enhance the fund's total return, particularly in volatile market conditions. Additionally, selling call options can provide downside protection, as the fund's portfolio is exposed to less market risk. This strategy can also generate income that is not directly correlated to the fund's underlying investments, potentially reducing overall portfolio volatility.

In conclusion, the Voya Global Advantage and Premium Opportunity Fund is an excellent choice for investors seeking a stable and predictable investment. Its unique strategy of selling call options on selected security indexes and ETFs, along with its currency hedging, contributes to its consistent performance. The fund's focus on stability and predictability makes it an attractive option for those looking to build a solid, long-term investment portfolio.

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