REX Crypto Equity Premium Income ETF

Frequently Asked Questions About CEPI

What does CEPI invest in?

CEPI aims for exposure in US crypto-related companies, in sectors such as crypto mining, trading, custody, blockchain technology development, and the creation of digital payment solutions. Component securities are grouped into Crypto Assets Leaders and Digital Payments Leaders of this space, with a 80% and 20% allocation respectively. The fund holds 25 stock positions, while employing a covered call strategy, writing out-of-the-money options on individual securities to boost income from higher premiums, partially offsetting price declines and limiting upside potential. CEPI 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 CEPI?

REX Crypto Equity Premium Income ETF (CEPI) charges an expense ratio of 0.85%. This is the annual fee deducted from fund assets to cover management and operations.

What is CEPI's distribution yield?

CEPI's trailing-twelve-month yield is 47.68%, 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 CEPI's covered-call strategy work?

CEPI 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 CEPI?

REX Crypto Equity Premium Income ETF (CEPI) manages $115.0M 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 CEPI actively managed or an index fund?

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