Netflix

Tesla

Apple

QUALCOMM

Intel

NVIDIA

Microsoft

Alphabet

Amazon

Advanced Micro Devices

REX FANG & Innovation Equity Premium Income ETF

FEPI is actively managed, seeking to provide similar returns as the Solactive FANG Innovation Index and monthly income. The fund invests in the securities comprising the index while writing call options on them.

I rate the REX FANG & Innovation Equity Premium Income ETF a Hold. The strategy has its perks, but has portfolio flaws for the average long-term income investor. FEPI's strategy of writing covered calls on individual tech stocks generates higher premiums but comes with increased volatility and limited upside. The fund's concentrated portfolio of 15 stocks exposes it to greater individual stock risks, exemplified by the impact of INTC's performance.

FEPI: Diversification Exists For A Reason

I recommend the REX FANG & Innovation Premium Income ETF for its high dividend yield and capital preservation, making it ideal for income generation. FEPI's strategy involves owning underlying tech assets and implementing 'out-of-the-money' options, which allows for some capital appreciation. FEPI should be used as an accompanying fund to diversify income streams, not as the sole portfolio component, due to its limited upside potential.

FEPI: An Efficient Way To Utilize A Covered Call Fund

Roundhill Innovation-100 0DTE Covered Call Strategy ETF

Neos Nasdaq-100 High Income ETF

Global X NASDAQ 100 Covered Call ETF

Covered Call ETFs like QYLD, FEPI, QQQI, and QDTE offer high yields by selling call options on Nasdaq 100 stocks, appealing to income-focused investors. FEPI, launched in October 2023, owns shares of top tech stocks and yields about 25%, outperforming QYLD in recent bull markets. QQQI, launched in January 2024, offers a 14% yield with a tax-efficient income stream, while QDTE, launched in March 2024, provides weekly distributions with a 31% yield.

Comparing 3 New And 1 Older Covered Call ETFs Offering High-Yield Income From Tech Stocks

The FEPI ETF generates high monthly income by selling covered calls on FANG stocks, achieving 25% annualized income over the past 11 months since its inception. The underlying stocks' high valuations and slowing growth rates expose FEPI to significant capital loss risks, potentially overwhelming its income returns. Fed easing may provide some short-term support to these speculatively sensitive tech stocks, but previous Fed-fuelled market advances have started from much cheaper valuations.

FEPI: Income Not Worth The Risk Of Capital Loss

FEPI invests in the top 15 large-cap tech stocks and sells covered calls to generate income, capping growth and exposing investors to downside risk. REX FANG & Innovation Equity Premium Income ETF offers a high distribution rate of 25.20%, but declining distributions and limited upside potential are concerns. Despite a relatively moderate expense ratio, the strategy's limited growth and downside risks make it less appealing for long-term investors.

FEPI Provides Investors With High Income But Growth Is Capped

ETFs selling covered calls with a growth portfolio is an interesting income approach during a bull market. Investors may look at a short-term bottom and recovery for good opportunities to buy growth (option) income ETFs. REX FANG & Innovation Equity Premium Income ETF has a questionable strategy and portfolio structure, not recommended for purchase.

FEPI: Not So 'Premium' Portfolio, Better ETFs Available

Cornerstone funds CLM and CRF offer monthly high-yield distributions with potential for capital appreciation from top S&P 500 stocks. Rex FANG & Innovation Equity Premium Income ETF offers even higher yield, also paid monthly, with a covered call strategy on 15 big tech stocks. FEPI provides high-yield income with some potential price gains from growth in underlying holdings, suitable for income investors.

FEPI: The New Cornerstone Of Income ETFs

Nuveen S&P 500 Dynamic Overwrite Fund

We've seen more choppiness in the markets in the last couple of weeks. That once again highlights why we should—dare I say need to—own one of the lowest-volatility, highest-paying investments I know of.

Don't Go Into The Next Market Crash Without These 7%+ Dividends

FEPI is a concentrated ETF focused on technology, generating high income through covered call options. Risks include lack of diversification and potential decline if technology sector loses favor. FEPI's strategy of writing out-of-the-money call options has led to significant income generation and potential for appreciation in a bullish market.

FEPI: Big Income And I Am Buying This 17% Yielding Covered Call ETF

JPMorgan Nasdaq Equity Premium Income ETF

AI-Powered Passive Income Snowball: FEPI And 2 Other Big Yields

REX FANG & Innovation Equity Premium Income ETF (FEPI) offers concentrated exposure to FANG stocks and other top technology companies. The fund combines big tech stock exposure with the potential for enhanced income through a covered call strategy. While FEPI's yield is high, it has grossly underperformed on total returns because its portfolio is only exposed to the stock's downside while trading away its upside.

FEPI: High Yield But Poor Upside Capture

REX FANG & Innovation Equity Premium Income ETF offers a high dividend yield of around 25% and monthly distributions, making it appealing for income-focused investors. FEPI uses a strategy of writing covered calls on its holdings in the tech sector to generate income and provide capital appreciation. The fund has outperformed peer covered call ETFs, such as QYLD, due to the fact that options are written out of the money.

FEPI: Making It Rain Dividends With A Covered Call ETF

REX FANG & Innovation Equity Premium Income ETF (FEPI) combines the growth potential of large tech companies with income generation from covered call strategies.

FEPI: A Covered Call High Yield Tech Play

Investors focused on income and dividends have struggled to find low and medium-risk investments that offer steady payouts. REX FANG & Innovation Equity Premium Income ETF has provided a total return of 13.87% since its inception in October 2023. FEPI uses a strategy of owning big-cap technology stocks and selling monthly out-of-the-money calls to generate income.

FEPI: This Fund Has A Great Strategy For Investors Seeking Consistent Income

REX Fang & Innovation Equity Premium Income ETF is a covered call ETF that has performed well since its inception in November 2023. FEPI tracks a selected universe of stocks and sells out-of-the-money calls to generate income. There are some structural difference in the FEPI relative to other more conventional covered call ETF.

FEPI: Above Average Yielding Covered Call ETF With A Nuanced Focus

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.

FEPI: Good Covered Call ETF, But Better Choices Are Out There

REX Fang & Innovation Equity Premium Income ETF has achieved a 25% annualized yield in its first 3 months, raising its distributions each month. FEPI has seen both high yield and share price appreciation, outperforming other covered call funds and the overall market which is very rare for these types of funds. The fund's success can be attributed to its holdings of big tech stocks, actively managed out-of-the-money covered calls, and writing calls on individual stocks rather than the index.

FEPI: So Far So Good

First Trust S-Network Streaming and Gaming ETF

MicroSectors FANG+ ETN

Invesco Next Gen Media and Gaming ETF

Netflix logged its best weekly performance in over a year last week on upbeat outlook and strong subscriber growth in Q4 of 2023. However, since the stock looks pricey at the current level, investors may play Netflix-heavy ETFs to tap the winning momentum.

Netflix Logs Best Week Since 2022: ETFs to Buy on High Momentum?

The streaming giant Netflix (NFLX) reported mixed Q4 results. But it added strong subscriber base and offered moderately upbeat guidance.

Netflix Shares Surge Post Earnings: ETFs in Focus

The pioneer in the streaming space Netflix (NFLX) is scheduled to report fourth-quarter 2023 results on Jan 23 after market close.

Will Netflix Beat or Miss on Q4 Earnings? ETFs in Focus

REX FANG & Innovation Equity Premium Income ETF is a new covered call fund that holds 15 big tech stocks on the Nasdaq and writes covered calls against each stock. The fund's approach of writing covered calls against individual stocks rather than indices allows for higher yields due to the higher volatility of single stocks. The fund has the potential to generate yields of 2-3x more than funds that write covered calls against indices.

FEPI: This New Covered Call Fund Shows Some Potential

MIAMI--(BUSINESS WIRE)--REX Shares (“REX”), a leader in exchange-traded products, announces the launch of the REX FANG & Innovation Equity Premium Income ETF (Nasdaq: FEPI). This groundbreaking ETF is designed to provide exposure to innovative, large-cap technology stocks along with the potential for high monthly income using a sophisticated covered call strategy. FEPI offers investors unique access to the 15 biggest US technology stocks through the FANG & Innovation Index, and seeks to.

News for REX FANG & Innovation Equity Premium Income ETF ETF (FEPI)