xETFs, a New York-based ETF issuer dedicated to making sophisticated institutional investment strategies accessible to investors, is today launching its first two funds:
Each fund seeks to provide current income and single-equity exposure through equity exposure and a systematic daily options strategy, writing call options daily to generate income, with distributions then paid weekly.
Unlike other single-stock income products, the xETFs Daily Income suite is also designed to provide substantial ongoing equity participation, seeking to retain at least 75% (with an initial target of 90%) of intra-day equity participation by selling up to 25% notional value1 of options, with an initial target of 10%.
By closing the options positions daily, the ETFs will also provide full long exposure overnight and during the weekends to each respective underlying equity.
“For investors interested in maintaining exposure to the return of these iconic stocks while also accessing potentially significant ongoing income, NYYY and TYYY are two very compelling additions to the ETF landscape,” said Johnny Wu, Co-founder and CEO of xETFs. “These are not strategies that individual investors can easily ‘DIY,’ and we are thrilled to bring our team’s collective decades of experience in derivatives and sophisticated options trading approaches to the highly liquid ETF wrapper for the first time.”
Joining Wu as co-founder of xETFs is Kenneth Wong, who most recently focused on ETF Product Development & Research at BlackRock, with a specific emphasis on effectively packaging longstanding institutional investment approaches, many based on the use of derivatives, as ETFs. Wu and Wong are joined by a third co-founder, Lisa Donohoe, COO and CFO of xETFs, who brings years of experience in COO and CFO roles with hedge funds and other alternative investment platforms.
The introduction of the firm’s Daily Income suite is the first step of what is planned to be a multi-phase approach that will eventually see xETFs offering investors a highly diversified lineup of ETFs providing exposures to approaches and solutions that previously had only been in the purview of the institutional and ultra-high net worth (UHNW) investor cohorts.
“My colleagues and I are excited about today’s launches and for all we have planned for the coming months. However, making sophisticated investment approaches ‘accessible’ does not mean simply throwing open the doors,” added Wu, who previously spent more than a decade with Barclays as a Managing Director and Head of the firm’s Cross Asset Solutions Sales team. “We will have a concurrent focus on education so investors understand not only what a fund is designed to deliver but how it works, where it might fit in an overall portfolio, and what potential risks may be involved.”
“Providing that education will be core to what makes xETFs stand out,” he added. “We will always focus on operating at the intersection of products and people.”
For more information on NYYY, TYYY and xETFs, please visit xetfs.com.
The firm’s LinkedIn feed is also a valuable resource with regular updates and insights around derivatives, options trading and terminology, and more.
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Notional value refers to the total value of the underlying asset in a contract. |
About xETFs
xETFs is a New York-based ETF issuer focused on providing access to institutional-quality investment strategies. Built by derivatives and ETF specialists with decades of institutional experience, the firm develops ETFs that seek to generate income, manage volatility, unlock new sources of return, and are available in a simple, accessible format for modern investors. xETFs was founded by industry veterans Johnny Wu, Kenneth Wong, and Lisa Donohoe, whose experience spans derivatives structuring, ETF innovation, investment banking, and asset management at firms including Barclays, BlackRock, and Merrill Lynch. xETFs — advanced strategies, accessible ETFs. For more information, please visit xetfs.com.
Important Disclosures
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s Prospectus and Summary Prospectus, which may be obtained by visiting www.xETFs.com/investor-materials. Read the Prospectus and Summary Prospectus carefully before investing.
The Funds are distributed by Foreside Fund Services, LLC.
Investing involves risk, including possible loss of principal. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund’s investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund’s investments were more broadly diversified. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund.
There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment. There is no guarantee that the Fund will be successful in its attempt to pay weekly distributions or consistent exposure to NVDA or TSLA. An investment in the Fund is not an investment in NVDA or TSLA. The Fund’s strategy will not capture all potential gains if NVDA’s or TSLA’s share price increases in value. The Fund’s strategy is subject to all potential losses if NVDA’s or TSLA’s share price decreases in value, which may not be offset by premium income received by the Fund.
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