An exchange-traded fund, trading under the ticker GIF, has been introduced by US-based asset manager REX Shares. It combines leveraged covered-call strategies connected to nine distinct stocks, including cryptocurrency-related names Coinbase and Strategy, into a single income-focused product.
The fund maintains equal-weighted positions in REX’s current single-stock Growth & Income ETFs, each of which aims for around 1.25x exposure to its underlying equity while selling covered calls on a portion of the portfolio to produce income from option premiums, according to the statement made on Thursday.
With distributions mostly coming from covered call premiums, GIF trades on Cboe Global Markets, and each underlying ETF aims to deliver income on a weekly basis.
Covered call premiums are the upfront payments a fund collects for selling options on stocks it already owns, generating income in exchange for capping some of the shares’ upside potential.
REX Shares said the ETF holds equal-weighted exposure to nine REX funds tied to Nvidia (NVII), Tesla (TSII), Strategy (MSII), Coinbase (COII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII) and Walmart (WMTI), spanning crypto-linked equities, technology, AI, healthcare and retail sectors.
The launch comes amid a week of new allocations tied to Strategy-linked securities.
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