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The Aptus Collared Income Opportunity ETF (ACIO) is an actively managed fund with the dual objective of achieving both capital growth and a consistent income stream. This strategy primarily involves investing in a focused portfolio of 70-80 large-capitalization individual stocks, on which it then sells covered call options to generate additional income. A core feature of ACIO is its commitment to minimizing downside risk through the strategic purchase of long put options tied to a broad-based market index, offering a layer of protection against significant market declines.
Is ACIO's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Dividend-paying stocks make up a solid portion of Uniting Wealth Partners' portfolio.
Aptus Collared Investment Opportunity ETF has a covered call portfolio in U.S. equities, combined with bear put spreads on the S&P 500 Index for downside protection. ACIO's Sharpe ratio is similar to the S&P 500's since inception, and its low current yield is unattractive for income-seeking investors. Compared to peers, ACIO has outperformed JEPI, but WTPI and DIVO are more attractive based on benefit/risk, yields and fees.
The Aptus Collared Investment Opportunity ETF mirrors the S&P 500's total return but with significantly lower drawdowns, making it a robust 'Hold' for conservative equity exposure. ACIO aims to capture 65% of the S&P 500's upside while limiting the downside to 50%, using a basket of options to achieve this. In 2025, ACIO had a maximum drawdown of -12% compared to the S&P 500's -20%, demonstrating its effectiveness in buffering against market downturns.
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ACIO's unique strategy of combining a core stock basket, covered calls, and put options provides robust downside protection, making it a standout ETF. Transparency in ACIO's holdings and strategy contrasts sharply with JEPI's opaque equity-linked notes, enhancing investor confidence in understanding risk. But I don't own ACIO because my own self-driven active investment process is similar enough in some aspects that make owning it redundant for me.