Maximizing income from big tech exposure with a fully covered call approach.
Distribution Rate* : 25.99%
Investment Manager
Source: Bloomberg / HANetf. Data As of 08.10.2026.*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
Options are written up to 10% out-of-the-money, maintaining exposure to any tech rallies and potential recoveries after 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.
REX Tech Innovation Premium Income UCITS ETF (FEPI) offers exposure to 20 top U.S.-listed tech stocks – including core FANG+ names – while aiming to generate premium income through a fully covered call strategy.
By writing options up to 10% out of the money, the fund seeks to boost monthly yield and capture volatility without sacrificing growth potential.
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.
Technology premium income refers to an approach that combines exposure to large technology-related shares with a covered call strategy designed to generate option premium income. The underlying shares provide exposure to areas such as artificial intelligence, semiconductors, cloud computing, digital platforms and software. The option-writing component seeks to convert some market volatility into distributable income. Investors should understand that the strategy remains equity-linked and can lose value if the underlying shares fall.
A fully covered call strategy sells call options across most or all of the relevant equity exposure. The strategy receives option premiums, which may support regular distributions. In exchange, upside participation may be limited if the underlying shares rise above the option strike prices. This means the strategy can behave differently from direct equity exposure: it may generate more income in some environments, but it may lag during strong technology rallies. Investors should assess income, capital movement and total return together.
The strike price matters because it determines the level at which upside may start to be capped. Writing options out of the money allows some room for share prices to rise before the option becomes exercisable. A lower strike may generate more premium but cap upside sooner, while a higher strike may allow more upside but generate less premium. Investors should understand that option-writing choices influence the balance between income generation and growth participation.
Examples of relevant stocks include Apple, Microsoft, Amazon, Nvidia, Intel, Netflix, Advanced Micro Devices, Meta Platforms, Tesla and Alphabet. These companies span digital platforms, semiconductors, cloud infrastructure, streaming, electric vehicles and AI-related technology. Investors should treat these as examples of current exposure rather than stock recommendations. The portfolio and option positions may change over time, so investors should review the latest holdings and methodology before making any decision.
Key risks include technology-sector concentration, capped upside, equity market risk, option strategy risk, distribution variability and currency risk. Option premiums can support income but do not provide full downside protection. If technology shares fall significantly, the value of the underlying equity exposure can decline. If technology shares rally strongly, sold call options may limit participation in further gains. Investors should avoid assessing the strategy solely by its distribution rate.
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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