Balancing big tech exposure with income by writing calls on approximately half the portfolio.
Distribution Rate* : 12.89%
Investment Manager
Source: Bloomberg / HANetf. Data As of 07.10.2026.*PLEASE NOTE: The Distribution Rate is the annual rate 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.
Stay invested in long-term growth themes
The portfolio provides exposure to some of the largest and most liquid U.S. tech stocks, enabling participation in structural growth trends.
Harvest elevated volatility premiums
By writing calls on individual names, the fund aims to take advantage of higher implied volatility than traditional index-based strategies typically offer.
Aims to preserve upside participation
By writing calls on only half the portfolio and setting strike prices up to 10% out-of-the-money, the strategy offers greater potential to benefit from any tech rallies and recoveries after market pullbacks.
The index is designed to represent 20 leading, U.S.-domiciled, large-cap technology companies that are highly liquid and positioned at the forefront of innovation. It begins with constituents from the Solactive GBS United States Large & Mid Cap Index PR. To be eligible, companies must have a market capitalisation of at least $10 billion, be listed on the NASDAQ or NYSE, and have at least one eligible share class.
Companies are then screened by industry classification, specifically within the Electronic Technology or Technology Services sectors, and must meet minimum thresholds for free float-adjusted market capitalisation and twelve-month average daily trading volume.
From the eligible list, the top 30 companies by market cap are identified. Excluding eight predefined core holdings – Apple, Amazon, Meta, Alphabet, Microsoft, Netflix, NVIDIA, and Tesla – the final 12 constituents are selected based on the highest twelve-month average daily traded value. These are then combined with the core names to form the 20-stock index.
The index is reconstituted quarterly and rebalanced monthly, with market cap-based weights subject to individual and cumulative limits to promote diversification.
REX Tech Innovation Income & Growth UCITS ETF (FEGI) offers exposure to 20 leading U.S.-listed tech stocks – including core FANG+ names – while aiming to generate income by writing covered calls on ~50% of the portfolio.
This balanced strategy targets attractive monthly distributions and meaningful upside, enhancing yield through volatility without materially capping growth.
The Tech Premium Income ETF is actively managed by the expert team at Rex Advisers, LLC.
Key Risks
When you invest in ETFs your capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns. The value of equities and equity-related securities can be affected by daily stock and currency market movements.
There is currently insufficient data to display the performance history.
No. of holdings: 20
Covered call ETFs hold a portfolio of stocks, or other asset classes, either actively selected or from an index, and sell call options on those holdings or the index itself. The option premiums are then distributed to investors as income, typically on a monthly basis.
These ETFs aim to provide enhanced income, especially in flat or moderately bullish markets, although they may underperform in strongly rising markets as potential upside is capped by the sold calls. Some covered call ETFs mitigate this by writing calls on only a portion of the ETF’s holdings, with the remaining stocks being used to capture growth.
Covered call ETFs generally pay distributions on a monthly basis, but can be other time frames including weekly or daily, funded from the option premiums collected from writing calls – or dividends from the underlying equities.
The distribution per share is the amount of income paid out by the ETF for each share owned, typically quoted monthly or quarterly.
For example, if an ETF pays $0.50 per share in a given month, and you own 1,000 shares, the calculation would be as follows:
$0.50 ×1000=$500
So, the distribution received by the investor would be $500.
The annual distribution rate is calculated by taking the most recently declared distribution per share, and calculating this by 12 and then dividing the resulting amount by the ETF’s most recent NAV.
For example, if the most recent distribution per share was $1.00, and the most recent NAV was $50.00, the calculation would be as follows:
($1.00 ×12)/$50.00 = 0.24 = 24%
The resulting figure (24%) reflects the yield an investor might expect to receive on an annual basis if current distribution levels continue.
It is important to note that the annual distribution rate is a projected value based on a single distribution and the most recent NAV. This is in no way a guarantee that investors will receive that distribution rate annually, and the actual annual distribution rate may differ from the projected value.
Remember that past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.
The announcement date is the day the ETF provider declares the amount, and schedule, of the upcoming distribution. It signals to the market how much will be paid and when.
The ex-date (or ex-dividend date) is the date by which you must own the ETF before, to be eligible for the next distribution.
This means that if investors buy shares on or after the ex-date, they will not receive the upcoming distribution.
The record date is the date that the ETF provider determines who is eligible to receive the distribution. Only shareholders listed as of the record date will receive the payout.
The payment date is when the distribution is actually paid out to investors – either by direct deposit or credited to their brokerage accounts.
Read our extensive list of FAQs on active management by clicking the button below.
Tech income and growth exposure combines equity exposure to large technology-related companies with an options strategy designed to generate income. The equity holdings provide participation in technology themes such as cloud computing, semiconductors, digital platforms, artificial intelligence and software. The options component seeks to generate premium income by selling call options on only part of the portfolio, a structure intended to preserve some capacity for capital growth compared with a fully covered approach. Investors should understand the trade-off: option premiums can support distributions, but selling calls can also reduce upside participation if the underlying shares rise strongly, and distributions may at times include a return of the investor’s own capital rather than income alone.
A partially covered call strategy sells call options on only part of the equity portfolio rather than the full portfolio. This allows the strategy to collect option premiums while leaving part of the portfolio more exposed to potential share-price gains. The approach may suit investors researching a balance between income generation and growth participation. However, distributions are not guaranteed, and the strategy can still lose value if the underlying technology shares fall. Investors should assess both income and total return, not just distribution levels.
Large technology stocks are often used because they tend to be liquid, widely followed and supported by active options markets. Their share prices can also be volatile, which may increase option premiums. Relevant companies may include Apple, Microsoft, Amazon, Nvidia, Netflix, Advanced Micro Devices, Meta Platforms, Tesla and Alphabet. These are examples of technology-related exposure rather than stock recommendations. Investors should consider valuation risk, sector concentration and the possibility that option strategies may underperform direct equity exposure during strong rallies.
A 50% covered strategy writes call options on roughly half of the portfolio, while a fully covered strategy writes calls across most or all of the relevant equity exposure. The partially covered approach generally aims to retain more upside participation, but may generate less option premium income than a fully covered approach. The fully covered approach may produce higher option income in some environments, but can cap more of the upside. Investors should decide whether they are prioritising income, growth participation or a balance of both.
Key risks include equity market risk, technology-sector concentration, capped upside, option strategy risk, distribution variability and currency risk. Technology shares can be sensitive to earnings expectations, interest rates, regulation, AI investment cycles and valuation changes. Option premiums may offset some volatility, but they do not protect fully against market falls. Investors should also remember that a high distribution rate does not necessarily mean a high total return, especially if the underlying share prices decline.
Tech income and growth exposure combines equity exposure to large technology-related companies with an options strategy designed to generate income. The equity holdings provide participation in technology themes such as cloud computing, semiconductors, digital platforms, artificial intelligence and software. The options component seeks to generate premium income by selling call options. Investors should understand the trade-off: option premiums can support distributions, but selling calls can also reduce upside participation if the underlying shares rise strongly.
Disclaimer: These FAQs have been generated with the assistance of AI and may contain errors or omissions. They are provided for general information only and do not constitute investment advice, a recommendation, or an invitation to buy or sell any investment.
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About Partner
REX is an innovative ETP provider focused on delivering alternative and thematic strategies. The firm has recently expanded into option-based income solutions and a crypto equity convertible bond ETF, reflecting a broader commitment to income generation and differentiated exposures. REX is also known for creating the leveraged suites of MicroSectors ETNs and the T-REX single stock ETFs. Select strategies are sub-advised by Vident Asset Management, a firm recognized for its deep expertise in options-based portfolio management.
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