REX AI Equity Premium Income ETF

Frequently Asked Questions About AIPI

What does AIPI invest in?

AIPI targets companies at the forefront of Artificial Intelligence (AI) technologies in sectors such as AI hardware, software, enabling infrastructure, and services. Companies are classified into Purity Leaders and Key Enablers in the AI space, with a 40% and 60% allocation respectively. The fund primarily invests in US-based AI technology companies, holding 25 stock positions for potential NAV growth while capping gains. It employs a covered call strategy, writing slightly out-of-the-money options on individual securities to boost income from higher premiums, partially offsetting price declines and limiting upside potential. Specifically, it sells standardized exchange-traded and FLEX call option contracts linked to underlying security returns. Managed actively, AIPI focuses on stock selection and option writing tailored to prevailing market conditions. The strategy aims to cushion against market declines and manage price volatility, blending capital appreciation and current income.

What is the expense ratio of AIPI?

REX AI Equity Premium Income ETF (AIPI) charges an expense ratio of 0.65%. This is the annual fee deducted from fund assets to cover management and operations.

What is AIPI's distribution yield?

AIPI's trailing-twelve-month yield is 38.35%, calculated from the sum of distributions over the past year divided by the current price. A rate this high reflects large option-premium distributions against a NAV that has declined over the same period. Part of each payout may be return of capital rather than earned income.

How does AIPI's covered-call strategy work?

AIPI sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is AIPI?

REX AI Equity Premium Income ETF (AIPI) manages $496.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is AIPI actively managed or an index fund?

AIPI's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.