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Index/RA Market Review – Q1 2021
Wednesday, May 12, 2021

gia, blog, insights, gateway investment advisers

gia, blog, insights, gateway investment advisers

  • The U.S. equity market gyrated early in the first quarter of 2021 with nearly all of its return generated after March 4. Following January’s decline, the market advanced on positive-trending developments surrounding COVID-19 paired with growing prospects for additional fiscal stimulus. Over the second half of February, increasing concerns over rising interest rates and the outlook for inflation gripped investors and the market retreated. Congress passed a new economic stimulus package in early March and the market advanced through quarter-end. The bond market had its worst quarter in almost 40 years.
  • The VIX®, averaged 23.20 in the first quarter of 2021. Average implied volatility was significantly higher than realized volatility, as measured by the standard deviation of daily returns for the S&P 500® Index, which was 15.86% for the quarter.
  • Gateway’s investment team focused on patiently earning index call option time premium from expiring contracts while adjusting select positions to maintain market exposure that is consistent with the Composite’s typical risk profile. After maintaining put coverage in a range of 80% to 95% since early August 2020, the investment team incrementally added index put options in January, restoring the Composite to full put coverage for the first time since late February 2020.

* The portfolio statistics reflected for the Composite are those measured by a representative account. This information represents supplemental information to the GIPS® Composite Report. This representative account was selected as it is the largest account in the Composite. Data as of March 31, 2021, unless noted otherwise. Past performance is not indicative of future results. Sources: Morningstar DirectSM and Bloomberg, L.P.




  • U.S. Market Recap
  • U.S. Market Perspective
  • Market Review
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    • Index/RA Market Review – Q3 2021
    • Active PutWrite Market Review – Q3 2021
    • Active PutWrite Market Review – Q2 2021
    • Active Overwrite Market Review – Q2 2021
    • Index/RA Market Review – Q2 2021
    • Active Overwrite Market Review – Q1 2021
    • Active PutWrite Market Review – Q1 2021
    • Index/RA Market Review – Q1 2021
  • Quick Takes
  • Flagship (Index/RA) Commentary
  • Active Overwrite Commentary
  • Active PutWrite Commentary



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Cincinnati, OH 45202-9834
Phone: 513-719-1100
Fax: 513-719-1199
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