REX Launches New NVDA Income ETF as Corporate Earnings Loom
- REX Financial has debuted a covered call ETF targeting weekly income from Nvidia stock.
- The fund offers 1.25x leveraged exposure while writing options on half of the portfolio.
- The launch coincides with high anticipation for Nvidia's quarterly earnings report.
REX Financial launched the REX NVDA Growth & Income ETF (NVII) Wednesday, introducing a covered call strategy targeting Nvidia Corp. (NVDA) as investors await the chipmaker's quarterly earnings report after market close.
The new fund represents the first single-stock ETF in REX's "Growth & Income Covered Call ETF Suite," capitalizing on heightened interest in Nvidia as artificial intelligence drives market momentum and volatility creates income opportunities through options strategies, according to a company release.
NVII Aims to Balance Growth & Income
NVII seeks to provide weekly income by writing call options on half of its portfolio while maintaining 1.25x leveraged exposure to Nvidia shares, according to the fund fact sheet. The strategy aims to balance growth potential with regular income generation.
"The launch of NVII marks the beginning of an exciting new series of single stock based income strategies at REX," said Scott Acheychek, chief operating officer of REX Financial, in the press release. The fund aims to "generate weekly income while maintaining uncapped exposure on half of the portfolio," he added.
The fund carries a 0.99% gross expense ratio and launched with $500,000 in net assets, according to the fund fact sheet. REX targets exposure between 1.05x and 1.5x of Nvidia's daily price movements, with actual leverage varying based on market conditions.
Timing NVDA Market Momentum
The ETF debut comes as stocks traded mixed on Wednesday ahead of Nvidia's earnings report, with traders parsing corporate results while awaiting Federal Reserve meeting minutes.
The fund writes short-term, out-of-the-money call options on half of the portfolio to generate weekly income while leaving the remaining half uncovered for full upside participation during rallies, according to the fact sheet. The strategy builds on REX's existing index-based covered call offerings, expanding into single-stock focused products designed to capture both growth and income from high-volatility technology stocks.
REX manages over $6 billion in assets and operates other covered call strategies including the $449.8 million REX FANG & Innovation Equity Premium Income ETF (FEPI) and the $290.1 million REX AI Equity Premium Income ETF (AIPI), according to the company release.
