REX Shares Unveils Latest Covered Call ETF Designed to Enhance Exposure to Crypto Leaders
REX Financial has launched the REX Crypto Equity Premium Income ETF (CEPI), a new covered call ETF providing exposure to the top 25 U.S. crypto-related companies through the BITA Crypto Assets & Digital Payments Index. The ETF implements an out-of-the-money call writing strategy on individual stocks to balance income generation and price appreciation.
CEPI joins REX's ETF lineup alongside FEPI and AIPI, which have accumulated over $500 million in assets under management. These existing funds offer annualized distribution rates of 25.2% and 34.8% respectively (as of 11/25/24), with 30-day SEC yields of -0.09% and -0.18% (as of 10/31/24).
REX Financial ha lanciato il REX Crypto Equity Premium Income ETF (CEPI), un nuovo ETF a copertura di chiamata che offre esposizione alle prime 25 aziende statunitensi legate alle criptovalute tramite il BITA Crypto Assets & Digital Payments Index. L'ETF implementa una strategia di scrittura di opzioni call fuori dalla moneta su titoli individuali per bilanciare la generazione di reddito e l'apprezzamento dei prezzi.
CEPI si unisce alla gamma di ETF di REX insieme a FEPI e AIPI, che hanno accumulato oltre 500 milioni di dollari in asset sotto gestione. Questi fondi esistenti offrono tassi di distribuzione annualizzati del 25,2% e del 34,8% rispettivamente (al 25/11/24), con rendimenti SEC a 30 giorni di -0,09% e -0,18% (al 31/10/24).
REX Financial ha lanzado el REX Crypto Equity Premium Income ETF (CEPI), un nuevo ETF de call cubierto que proporciona exposición a las 25 principales empresas de criptomonedas relacionadas de EE. UU. a través del Índice de Activos Cripto y Pagos Digitales de BITA. El ETF aplica una estrategia de escritura de calls fuera del dinero sobre acciones individuales para equilibrar la generación de ingresos y la apreciación de precios.
CEPI se une a la línea de ETFs de REX junto con FEPI y AIPI, que han acumulado más de $500 millones en activos bajo gestión. Estos fondos existentes ofrecen tasas de distribución anualizadas del 25.2% y 34.8% respectivamente (a partir del 25/11/24), con rendimientos SEC a 30 días de -0.09% y -0.18% (a partir del 31/10/24).
REX Financial는 REX Crypto Equity Premium Income ETF (CEPI)를 출시했습니다. 이 새로운 커버드 콜 ETF는 BITA Crypto Assets & Digital Payments Index를 통해 미국의 상위 25개 암호화폐 관련 기업에 대한 노출을 제공합니다. 이 ETF는 개별 주식에 대해 가격 상승과 수익 생성의 균형을 맞추기 위해 아웃 오브 머니 콜 작성을 전략으로 적용합니다.
CEPI는 REX의 ETF 라인업에 FEPI 및 AIPI와 함께 합류하며, 이들은 5억 달러 이상의 자산을 관리하고 있습니다. 기존 펀드는 각각 25.2% 및 34.8%의 연간 배당률을 제공하고 있으며 (2024년 11월 25일 기준), 30일 SEC 수익률은 -0.09% 및 -0.18%입니다 (2024년 10월 31일 기준).
REX Financial a lancé le REX Crypto Equity Premium Income ETF (CEPI), un nouvel ETF de call couvert offrant une exposition aux 25 meilleures entreprises américaines liées aux cryptomonnaies via l'indice BITA Crypto Assets & Digital Payments. L'ETF met en œuvre une stratégie d'écriture de call hors de la monnaie sur des actions individuelles pour équilibrer la génération de revenus et l'appréciation des prix.
CEPI s'ajoute à la gamme d'ETF de REX aux côtés de FEPI et AIPI, qui ont accumulé plus de 500 millions de dollars d'actifs sous gestion. Ces fonds existants offrent des taux de distribution annualisés de 25,2 % et 34,8 %, respectivement (au 25/11/24), avec des rendements SEC sur 30 jours de -0,09 % et -0,18 % (au 31/10/24).
REX Financial hat den REX Crypto Equity Premium Income ETF (CEPI) ins Leben gerufen, einen neuen Covered-Call-ETF, der eine Exposition gegenüber den 25 größten US-Krypto-Unternehmen über den BITA Crypto Assets & Digital Payments Index bietet. Der ETF implementiert eine Strategie des Schreibens von Call-Optionen außerhalb des Geldes auf einzelne Aktien, um Einkommensgenerierung und Preissteigerung in Einklang zu bringen.
CEPI reiht sich in das ETF-Angebot von REX ein, das auch FEPI und AIPI umfasst, die zusammen über 500 Millionen Dollar an verwaltetem Vermögen angesammelt haben. Diese bestehenden Fonds bieten annualisierte Ausschüttungsraten von 25,2 % bzw. 34,8 % (Stand 25.11.24), mit 30-tägigen SEC-Renditen von -0,09 % und -0,18 % (Stand 31.10.24).
- Launch of new ETF (CEPI) providing exposure to top 25 U.S. crypto companies
- Existing REX ETFs (FEPI and AIPI) have accumulated over $500M in assets under management
- High distribution rates on existing ETFs: 25.2% (FEPI) and 34.8% (AIPI)
- Negative 30-day SEC yields for existing ETFs: -0.09% (FEPI) and -0.18% (AIPI)
- Current distributions represent 100% Return of Capital
Insights
The launch of CEPI represents a significant development in the cryptocurrency investment landscape, offering a novel approach to generating income from crypto-related equities. The ETF's covered call strategy on individual stocks, rather than the index as a whole, provides a more granular approach to income generation while maintaining upside potential.
The track record of REX's existing products (FEPI and AIPI) with
The expense ratio of
This product launch is strategically timed to capitalize on the growing institutional interest in cryptocurrency-related investments. By focusing on equities rather than direct crypto exposure, CEPI offers a regulated, more traditional investment vehicle that may appeal to investors seeking crypto sector exposure with enhanced income potential.
The success of REX's previous ETFs suggests there's significant market demand for innovative income strategies in emerging technology sectors. The structure allows investors to participate in the crypto ecosystem while potentially benefiting from its characteristic volatility through option premiums, creating an attractive value proposition for income-focused investors who want controlled exposure to the crypto sector.
CEPI’s unique covered call strategy aims to unlock added income from the BITA Crypto Assets & Digital Payments Index
CEPI provides investors unique access to the top 25 U.S. crypto-related companies through the BITA Crypto Assets & Digital Payments Index, including those that operate in crypto mining, trading, custody, blockchain technology development, and the creation of digital payment solutions. CEPI executes an out-of-the-money call writing strategy across the individual stocks within the index, balancing the potential for income generation and price appreciation. This innovative approach is designed to help investors better capitalize on the cryptocurrency sector’s volatility and upside potential.
CEPI joins REX’s lineup as the firm’s third covered call ETF, following the flagship FANG & Innovation Equity Premium Innovation ETF (Nasdaq: FEPI) and the REX AI Equity Premium Income ETF (Nasdaq: AIPI). Since its launch a year ago, FEPI and AIPI have accumulated over
“Crypto is transforming financial ecosystems and creating unique investment opportunities. With CEPI, we’re applying our targeted covered call strategy to the sector’s most disruptive companies, creating new opportunities for income generation,” said Greg King, CEO of REX Financial. “We remain committed to building first-of-their-kind tools to help traders and investors harness opportunities in the market.”
For more information on REX Financial or CEPI, please visit www.rexshares.com.
Prospectus for FEPI: https://www.rexshares.com/wp-content/uploads/2023/10/rex-fang-prospectus_v2.pdf
Prospectus for AIPI: https://www.rexshares.com/wp-content/uploads/2024/05/rex-ai-equity-premium-income-etf-prospectus_v1.pdf
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For standardized fund performance, please visit www.rexshares.com.
*The Distribution Rate is the annual yield an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Current distributions represent
**The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period, expressed as an annual percentage rate based on such ETF’s share price at the end of the 30-Day period. The REX AI Equity Premium Income ETF and the REX FANG & Innovation Equity Premium Income ETF have a gross expense ratio of
About REX Financial
REX Financial is an innovative ETP provider specializing in alternative-strategy ETFs and ETNs, with
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. The Fund’s prospectus and summary prospectus contain this and other information about REX Shares. To obtain a Fund’s prospectus and summary prospectus call 1-844-802-4004. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Important Risks
Industry Concentration Risk. In following its methodology, the Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or industry group. To the extent that the Index concentrates in the securities of issuers in a particular industry or industry group, the Fund will also concentrate its investments to approximately the same extent.
Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.
Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.
Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next. Additionally, the monthly distributions, if any, may consist of returns of capital, which would decrease the Fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.
Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s call writing strategy will impact the extent to which the Fund participates in the positive price returns of the individual stocks comprising the Index and, in turn, the Fund’s returns, both during the term of the sold call options and over longer time periods.
Crypto Asset Risk. The Fund has exposure to the crypto asset platforms as a result of the Index attempting to reflect generally the performance of the price of Bitcoin before payment of its expenses and liabilities. A crypto asset operates without central authority or banks and is not backed by any government. Crypto assets are often referred to as a “virtual asset” or “digital asset,” and operate as a decentralized, peer-to-peer financial trading platform and value storage that is used like money. A crypto asset is also not a legal tender. Federal, state or foreign governments may restrict the use and exchange of a crypto asset, and regulation in the
Technology Industry Risk. The stock prices of technology and technology-related companies and, therefore, the value of the Fund, may experience significant price movements as a result of intense market volatility, worldwide competition, consumer preferences, product compatibility, product obsolescence, government regulation, excessive investor optimism or pessimism, or other factors.
Index: The BITA Crypto Assets and Digital Payments Index (the “Index”) is a rules-based composite index that tracks the market performance of 25 companies, listed on recognized exchanges based in the US, that are actively engaged in crypto-related activities such as cryptocurrency mining, trading, custody, blockchain technology development, and the creation of digital payment solutions. The Index is weighted by modified free float market capitalization and is reconstituted quarterly and rebalanced monthly, providing a dynamic reflection of market trends.
Out of the Money Option: An out of the money call option has a strike price that is higher than the price of the underlying asset.
Call Option: Call options are financial contracts that give the buyer the right—but not the obligation—to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific period.
Funds distributed by: Foreside Fund Services, LLC, not affiliated with Rex Shares, LLC.
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Source: REX Financial
FAQ
What is the investment strategy of the new REX Crypto ETF (CEPI)?
What are the distribution rates of REX's existing ETFs as of November 2024?
What is the expense ratio for CEPI and other REX ETFs?
