FEPI: The No-Brainer ETF Investment for Money Breeding Money

In the fast-paced world of technology and innovation, investors are constantly searching for the perfect vehicle to maximize returns while generating consistent income. The REX FANG & Innovation Equity Premium Income ETF (FEPI) emerges as a standout option, offering a unique blend of capital appreciation and income generation. Here’s why FEPI is a no-brainer ETF investment for those looking to make their money work harder.

The REX FANG & Innovation Equity Premium Income ETF (FEPI) is designed to achieve two primary objectives: capital appreciation and current income. By investing in a carefully selected portfolio of big tech stocks and employing a covered call strategy, FEPI aims to provide investors with growth opportunities from leading technology companies while generating a steady income stream.

The benchmark itself is an equal-weighted index consisting of 15 US technology companies.The FANG & Innovation Index is equally weighted and includes 15 highly liquid stocks focused on building tomorrow’s technology today. The index rebalances monthly and reconstitutes quarterly.

What is FEPI?

Why you should invest in FEPI?

1

High Distribution Rate for 25.20%*

*As of 22/05/2024 from rexshares.com

Strategic Covered Call Writing

One of the most attractive features of FEPI is its distribution rate of 25.20% as of May 22, 2024. This rate is particularly appealing to income-focused investors seeking regular payouts. FEPI’s monthly distribution schedule ensures a reliable income stream, which can significantly enhance overall portfolio returns.

2

FEPI’s strategy includes writing covered calls on its holdings. This approach involves selling call options on the securities in the portfolio, thereby generating premium income. The proceeds from these call options are then invested in money market instruments, further boosting the fund’s income potential. This strategic combination can lead to enhanced income without sacrificing growth potential.

3

Exposure to Leading Tech Stocks

FEPI invests in a curated basket of 15 highly liquid, equally-weighted tech stocks. This portfolio includes industry giants such as NVIDIA, Microsoft, and Alphabet. The index is rebalanced monthly and reconstituted quarterly, ensuring that the portfolio remains aligned with the most current market conditions and opportunities. This exposure to leading tech companies positions investors to benefit from the ongoing advancements in technology.

Comparison with NASDAQ 100 Index

Risks

Sector Concentration

FEPI’s focus on the technology sector means it may be more volatile than a diversified fund.

Liquidity

Some securities held by FEPI, including options, may be difficult to sell during market turmoil.

Derivatives and Call Writing

The fund’s use of derivatives and a call writing strategy introduces additional risks, such as imperfect correlation with underlying investments and increased volatility.

The REX FANG & Innovation Equity Premium Income ETF (FEPI) is a compelling option for investors seeking both growth and income. With its strategic covered call approach, high distribution rate, and exposure to leading tech stocks, FEPI offers a balanced solution for those looking to capitalize on the dynamic tech sector while generating regular income. This makes FEPI a no-brainer ETF investment for those aiming to make their money breed more money.

Before investing, make sure to review the fund’s prospectus here and consider consulting with a financial advisor to ensure it aligns with your investment objectives and risk tolerance.

Conclusion

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