HANetf has announced the launch of three actively managed covered call ETFs from REX Shares, each with a TER of 0.65 per cent.
The funds are the REX Tech Innovation Income & Growth UCITS ETF (ticker: FEGI); the REX Tech Innovation Premium Income UCITS ETF (ticker: FEPI) and the REX Crypto Equity Income & Growth UCITS ETF (ticker: CEGI).
FEGI and FEPI both offer exposure to 20 leading US-listed technology stocks – including core FANG+ names – and aim to generate monthly income through covered call strategies.
FEGI writes options on approximately 50 per cent of the portfolio, balancing income and growth potential, while FEPI employs a fully covered approach, writing calls up to 10 per cent out of the money to enhance yield without fully capping upside.
Meanwhile, CEGI focuses on 25 US-listed companies linked to the crypto and blockchain ecosystem, also using a ~50 per cent covered call strategy with the aim of delivering attractive monthly distributions and capturing volatility-driven income without materially limiting growth.
The three launches mark REX Shares’ first entry to the European market. The company manages over USD5 billion in assets under management (AUM) across its strategies in the US.
The firm writes that covered call and options based ETFs are seeing significant growth in Europe, now representing USD4.35 billion in assets under management (AUM), having registered over USD2.56 billion in net flows so far this year.
Fund selectors across Europe expressed the greatest demand for covered call and fixed income strategies across the spectrum of active ETFs according to the latest HANetf Thematic & Active Review.
