ETF fund manager REX Shares has launched the REX AI Equity Premium Income ETF on Nasdaq under the AIPI ticker. AIPI is designed to provide investors with exposure to leading AI companies while aiming for an enhanced monthly income using an advanced covered call strategy.
AIPI grants investors access to the top US artificial intelligence technology companies through the BITA Leaders Select Index, which includes pioneers in AI hardware, software, infrastructure, and services.
Using a covered call strategy, AIPI sells out-of-the-money call options to help generate income from premiums which also allows for potential appreciation in the AI sector, making AIPI an attractive option for growth and income investors.
The strategy leverages the growth potential of key AI stocks and delivers monthly income from companies that typically do not pay dividends, potentially serving as a downside hedge during market dips. AIPI slots neatly into REX Shares’ approach to innovating the covered call ETF landscape with specialised, options-based strategies that seek to address investor needs of potential NAV growth & income.
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AIPI marks REX’s second venture into covered call ETFs, building on the momentum of the FANG & Equity Premium Innovation Index ETF (Nasdaq: FEPI), which has accumulated over $225 million in assets under management since inception in October.
“The AI revolution is transforming every industry and presents vast investment potential,” said Scott Acheychek, COO of REX Shares. “Building on our success with our covered call FANG & Innovation ETF, we launched AIPI to allow investors to capitalize on these advancements owning the stocks while using options to provide a steady income stream. “We are excited to be working with BITA on this product for the underlying index.”
