2024-03-18 08:37:15 ET
Summary
- FEPI is a covered call ETF focusing on select growth and tech stocks.
- Although the fund offers investors a sky-high 25.9% yield and has outperformed since inception, risks seem excessive.
- JEPQ is a similar fund, with greater diversification, and an overall stronger value proposition.
The REX FANG & Innovation Equity Premium Income ETF (NASDAQ: FEPI ) is a new covered call ETF focusing on select tech and growth companies, including Micron Technology (NASDAQ: MU ), Nvidia (NASDAQ: NVDA ) and Tesla (NASDAQ: TSLA ). It sells out of the money call options on its holdings, capping potential upside, but boosting its distribution rate to a whopping 25.9%, annualized....
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For further details see:
FEPI: Good Covered Call ETF, But Better Choices Are Out There