TappAlpha Announces Second Monthly Distribution for TappAlpha SPY Growth & Daily Income ETF (TSPY)

Rhea-AI Summary

TappAlpha announced the second monthly distribution for its SPY Growth & Daily Income ETF (TSPY), declaring $0.27655 per share with a distribution rate of 12.93% and 30-day SEC yield of 0.57%. TSPY, launched on August 15, 2024, combines S&P 500 growth with a daily covered call strategy for enhanced income and market participation. The ETF, which made its first distribution on October 3, 2024, currently manages $6.93 million in net assets with a management fee of 0.68%.

Positive

• High distribution rate of 12.93%
• Consistent monthly distribution payments maintained
• Assets under management of $6.93 million achieved within first three months

Negative

• Low 30-day SEC yield of 0.57%
• Relatively high management fee of 0.68%

Insights

Financial Analyst

The second distribution announcement for TSPY reveals a meaningful $0.27655 per share payout, translating to a substantial 12.93% distribution rate. While the high distribution rate appears attractive, investors should note the much lower 0.57% 30-day SEC yield, which better reflects the fund's actual earnings. The ETF's relatively small asset base of $6.9M and short operating history since August 2024 suggest it's still in its early growth phase. The 0.68% management fee positions it in the mid-range for actively managed ETFs. The covered call strategy on SPY exposure offers an interesting income-focused approach, but needs more time to establish a consistent track record.

SEATTLE--(BUSINESS WIRE)-- TappAlpha, a fintech company aiming to make powerful investing accessible, today announced the second monthly income distribution for the TappAlpha SPY Growth & Daily Income ETF (NASDAQ: TSPY).

(Graphic: Business Wire)

Distribution Amount: $0.27655 per share
Distribution Rate (as of 11/5/24): 12.93%
30-day SEC Yield (as of 11/5/24): 0.57%

Ex-Date - Wednesday, 11/6/24
Payable Date - Thursday, 11/7/24

Launched on August 15, 2024, TSPY seeks to generate current income while maintaining prospects for capital appreciation. The ETF integrates the S&P 500’s growth with a daily covered call strategy, helping to provide enhanced income with market participation. This innovative strategy is designed for those seeking portfolio diversification, additional income potential and effective risk management.

TSPY issued its first monthly distribution on October 3, 2024. TSPY is currently offered at a management fee of 0.68% and has $6,931,386 in net assets as of 11/6/24.

To learn more about TappAlpha and TSPY, please visit TappAlphaFunds.com.

About TappAlpha

Founded in 2023, TappAlpha is a Seattle-based fintech company committed to making advanced financial tools and education accessible to everyone. By making investing simple, actionable, and transparent, TappAlpha seeks to enable investors to unlock potential income and achieve their financial goals. The company is built on a foundation of empathy, trust, and transparency ensuring a customer-first approach in all of its initiatives.

Disclosures

For prospectus, click here: TSPY Prospectus

The Fund’s shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objectives. The Fund invests in options contracts that are based on the value of the Index, including SPX and XSP options. This subjects the Fund to certain of the same risks as if it owned shares of companies that comprised the Index, even though it does not own shares of companies in the Index. The Fund will have exposure to declines in the Index. The Fund is subject to potential losses if the Index loses value, which may not be offset by income received by the Fund. By virtue of the Fund’s investments in options contracts that are based on the value of the Index, the Fund may also be subject to an indirect investment risk, an index trading risk & an S&P 500 Index Risk.

Due to the short time until their expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with more time until expiration. Because of this, the timing of trades utilizing 0DTE options becomes more critical. Even a slight delay in the execution of 0DTE trades can significantly impact the outcome of the trade. 0DTE options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at desired prices. The bid-ask spreads on 0DTE options can be wider than with traditional options, increasing the Fund's transaction costs and negatively affecting its returns. These risks may negatively impact the performance of the fund.

The Distribution Rate is the annual rate an investor would receive if the most recent fund distribution remained the same going forward. The Distribution Rate represents a single distribution from the Fund and is not a representation of the Fund's total return. The Distribution Rate is calculated by multiplying the most recent distribution by 12 in order to annualize it, and then dividing by the Fund's NAV.

30-day SEC Yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30-day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.

Return of Capital (ROC) refers to a portion of a distribution that an ETF, mutual fund, or other investment may pay to investors that comes from the original principal (or initial investment) rather than from earnings, profits, or capital gains.

A final determination of the tax character of distributions paid by the Funds will not be known until the completion of the Funds’ fiscal year and there can be no assurance as to the portions of each Fund’s distributions that will constitute return of capital and/or dividend income. The final determination of the tax character of distributions paid by the Funds in 2024 will be reported to shareholders in January 2025 on Form 1099-DIV.

Investing in securities involves risk including the loss of principal.

Distributed by Foreside Fund Services, LLC, Member FINRA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107337756/en/

For media inquiries:

Gregory FCA for TappAlpha

TappAlpha@gregoryfca.com

Source: TappAlpha

FAQ

What is the latest distribution amount for TappAlpha TSPY ETF?

The latest distribution amount for TSPY ETF is $0.27655 per share, announced for November 2024.

What is TSPY ETF's current distribution rate?

As of November 5, 2024, TSPY ETF's distribution rate is 12.93%.

When was TSPY ETF launched?

TSPY ETF was launched on August 15, 2024.

What are TSPY ETF's current net assets?

As of November 6, 2024, TSPY ETF has net assets of $6,931,386.