CEPI’s unique covered call strategy aims to
unlock added income from the BITA Crypto Assets & Digital
Payments Index
REX Financial (“REX”), a leader in innovative exchange-traded
products, today announces the launch of the REX Crypto Equity
Premium Income ETF (Nasdaq: CEPI). CEPI aims to provide investors
exposure to leading cryptocurrency (crypto) companies while
generating an enhanced monthly income using an advanced covered
call strategy.
CEPI provides investors unique access to the top 25 U.S.
crypto-related companies through the BITA Crypto Assets &
Digital Payments Index, including those that operate in crypto
mining, trading, custody, blockchain technology development, and
the creation of digital payment solutions. CEPI executes an
out-of-the-money call writing strategy across the individual stocks
within the index, balancing the potential for income generation and
price appreciation. This innovative approach is designed to help
investors better capitalize on the cryptocurrency sector’s
volatility and upside potential.
CEPI joins REX’s lineup as the firm’s third covered call ETF,
following the flagship FANG & Innovation Equity Premium
Innovation ETF (Nasdaq: FEPI) and the REX AI Equity Premium Income
ETF (Nasdaq: AIPI). Since its launch a year ago, FEPI and AIPI have
accumulated over $500 million in assets under management and offers
an annualized distribution rate* of 25.2% and 34.8% respectively
(as of 11/25/24) and a 30-day SEC yield** of -0.09% and -0.18% (as
of 10/31/24).
“Crypto is transforming financial ecosystems and creating unique
investment opportunities. With CEPI, we’re applying our targeted
covered call strategy to the sector’s most disruptive companies,
creating new opportunities for income generation,” said Greg King,
CEO of REX Financial. “We remain committed to building
first-of-their-kind tools to help traders and investors harness
opportunities in the market.”
For more information on REX Financial or CEPI, please visit
www.rexshares.com.
Prospectus for FEPI:
https://www.rexshares.com/wp-content/uploads/2023/10/rex-fang-prospectus_v2.pdf
Prospectus for AIPI:
https://www.rexshares.com/wp-content/uploads/2024/05/rex-ai-equity-premium-income-etf-prospectus_v1.pdf
The performance data quoted represents past performance. Past
performance does not guarantee future results. The investment
return and principal value of an investment will fluctuate. An
investor’s shares, when redeemed, may be worth more or less than
their original cost; current performance may be lower or higher
than the performance quoted. For standardized fund performance,
please visit www.rexshares.com.
*The Distribution Rate is the annual yield an investor would
receive if the most recently declared distribution, which includes
option income, remained the same going forward. The Distribution
Rate is calculated by multiplying an ETF’s Distribution per Share
by twelve (12), and dividing the resulting amount by the ETF’s most
recent NAV. The Distribution Rate represents a single distribution
from the ETF and does not represent its total return. Current
distributions represent 100% Return of Capital. For full details on
the composition of distributions, please refer to the latest 19a-1
notice.
**The 30-Day SEC Yield represents net investment income, which
excludes option income, earned by such ETF over the 30-Day period,
expressed as an annual percentage rate based on such ETF’s share
price at the end of the 30-Day period. The REX AI Equity Premium
Income ETF and the REX FANG & Innovation Equity Premium Income
ETF have a gross expense ratio of 0.65%. Distributions are not
guaranteed.
About REX Financial
REX Financial is an innovative ETP provider specializing in
alternative-strategy ETFs and ETNs, with $9 billion in assets under
management. REX is renowned for creating MicroSectorsTM and
co-creating the T-REX product lines of leveraged and inverse tools
for traders and recently launched a series of option-based income
strategies.
An investor should carefully consider a Fund’s investment
objective, risks, charges, and expenses before investing. The
Fund’s prospectus and summary prospectus contain this and other
information about REX Shares. To obtain a Fund’s prospectus and
summary prospectus call 1-844-802-4004. A Fund’s prospectus and
summary prospectus should be read carefully before
investing.
Important Risks
Industry Concentration Risk. In following its
methodology, the Index from time to time may be concentrated to a
significant degree in securities of issuers located in a single
industry or industry group. To the extent that the Index
concentrates in the securities of issuers in a particular industry
or industry group, the Fund will also concentrate its investments
to approximately the same extent.
Liquidity Risk. Some securities held by the Fund,
including options contracts, may be difficult to sell or be
illiquid, particularly during times of market turmoil.
Derivatives Risk. Derivatives are financial instruments
that derive value from the underlying reference asset or assets,
such as stocks, bonds, or funds (including ETFs), interest rates or
indexes. The Fund’s investments in derivatives may pose risks in
addition to, and greater than, those associated with directly
investing in securities or other ordinary investments, including
risk related to the market, imperfect correlation with underlying
investments or the Fund’s other portfolio holdings, higher price
volatility, lack of availability, counterparty risk, liquidity,
valuation and legal restrictions.
Distribution Risk. As part of the Fund’s investment
objective, the Fund seeks to provide current monthly income. There
is no assurance that the Fund will make a distribution in any given
month. If the Fund does make distributions, the amounts of such
distributions will likely vary greatly from one distribution to the
next. Additionally, the monthly distributions, if any, may consist
of returns of capital, which would decrease the Fund’s NAV and
trading price over time. As a result, an investor may suffer
significant losses to their investment.
Call Writing Strategy Risk. The path dependency (i.e.,
the continued use) of the Fund’s call writing strategy will impact
the extent to which the Fund participates in the positive price
returns of the individual stocks comprising the Index and, in turn,
the Fund’s returns, both during the term of the sold call options
and over longer time periods.
Crypto Asset Risk. The Fund has exposure to the crypto
asset platforms as a result of the Index attempting to reflect
generally the performance of the price of Bitcoin before payment of
its expenses and liabilities. A crypto asset operates without
central authority or banks and is not backed by any government.
Crypto assets are often referred to as a “virtual asset” or
“digital asset,” and operate as a decentralized, peer-to-peer
financial trading platform and value storage that is used like
money. A crypto asset is also not a legal tender. Federal, state or
foreign governments may restrict the use and exchange of a crypto
asset, and regulation in the U.S. is still developing. Further, the
spot markets for crypto assets are fragmented and lack regulatory
compliance and/or oversight. Crypto asset platforms may stop
operating or permanently shut down due to fraud, technical
glitches, hackers or malware. The Fund’s indirect exposure to
crypto assets such as Bitcoin may be affected by the high
volatility associated with such crypto asset exposure. Future
regulatory actions or policies may limit the ability to sell,
exchange or use crypto assets, thereby impairing their prices.
Crypto asset trading platforms on which Bitcoin trades, and which
may serve as a pricing source for valuation of spot Bitcoin held by
the Index may be subject to enforcement actions by regulatory
authorities.
Technology Industry Risk. The stock prices of technology
and technology-related companies and, therefore, the value of the
Fund, may experience significant price movements as a result of
intense market volatility, worldwide competition, consumer
preferences, product compatibility, product obsolescence,
government regulation, excessive investor optimism or pessimism, or
other factors.
Index: The BITA Crypto Assets and Digital Payments Index
(the “Index”) is a rules-based composite index that tracks the
market performance of 25 companies, listed on recognized exchanges
based in the US, that are actively engaged in crypto-related
activities such as cryptocurrency mining, trading, custody,
blockchain technology development, and the creation of digital
payment solutions. The Index is weighted by modified free float
market capitalization and is reconstituted quarterly and rebalanced
monthly, providing a dynamic reflection of market trends.
Out of the Money Option: An out of the money call option
has a strike price that is higher than the price of the underlying
asset.
Call Option: Call options are financial contracts that
give the buyer the right—but not the obligation—to buy a stock,
bond, commodity, or other asset or instrument at a specified price
within a specific period.
Funds distributed by: Foreside Fund Services, LLC, not
affiliated with Rex Shares, LLC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241204941755/en/
For media inquiries, please contact: Gregory FCA for REX Shares
rexshares@gregoryfca.com
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