VistaShares Targets Monthly Income With New Quality ETF
- VistaShares's new ETF, QUSA, combines quality U.S. stocks with an options overlay strategy.
- The fund aims for a 15% annual yield distributed monthly.
- QUSA joins the Target 15 lineup after OMAH's quick AUM growth.
VistaShares launched the VistaShares Target 15 USA Quality Income ETF (QUSA) Tuesday, adding to its lineup of options-enhanced income ETFs, the company announced.
The actively managed ETF is the first exchange-traded fund combining factor-based equity investing with an options overlay designed to generate high monthly income, the company said, creating a new investment category for advisors seeking to simplify portfolio construction by merging core equity exposure with income generation.
"The universe of factor ETFs is massive, with over $100 billion in investor dollars across the range of available funds. But to this point, there were no ETFs that provided factor-driven exposures with an equity options overlay," Adam Patti, CEO of VistaShares, said in the announcement.
The fund targets a 15% annual yield paid monthly through its options strategy, following the same income approach as the firm's first fund launched earlier this year.
QUSA: Under The Hood
QUSA holds 50 U.S. stocks with strong quality characteristics while applying an actively managed options overlay to generate monthly income, according to the fund factsheet.
Top holdings include CME Group Inc. (CME) at 5%, Cintas Corp. (CTAS) at 4.8% and Arthur J. Gallagher & Co. (AJG) at 4.8%, according to VistaShares. Other major positions include Microsoft Corp. (MSFT), Procter & Gamble Co. (PG) and Visa Inc. (V).
The fund carries a 0.95% expense ratio and trades on the New York Stock Exchange, according to the fund factsheet.
Growing Target 15 Family
QUSA joins the VistaShares Target 15 Berkshire Select Income ETF (OMAH), which launched in March and has gathered $134.5 million in assets under management, according to FactSet data.
OMAH follows a similar strategy but focuses on a portfolio of stocks mirroring select Berkshire Hathaway holdings rather than quality factors. Since its launch, OMAH has returned 7.9% over the past month and attracted $124.2 million in net flows, according to data from FactSet.
Both funds employ options strategies managed by the team at Tidal Financial Group, with Jay Pestrichelli serving as lead portfolio manager for the options overlay, according to the company announcement.
"A core equity exposure can now simultaneously deliver high monthly income potential. It is nothing short of a game changer when it comes to introducing greater efficiencies into the portfolio construction process," Patti added.
