Nicholas Fixed Income Alternative ETF

Frequently Asked Questions About FIAX

What does FIAX invest in?

The Nicholas Fixed Income Alternative ETF is a dynamically managed fund that primarily allocates capital to U.S. government debt instruments, seeking to generate consistent income. This is achieved in part through a structured options strategy designed to yield premium income while managing potential losses, by utilizing options tied to exchange-traded funds that cover a broad range of asset categories.

What is the expense ratio of FIAX?

Nicholas Fixed Income Alternative ETF (FIAX) charges an expense ratio of 0.97%. This is the annual fee deducted from fund assets to cover management and operations.

What is FIAX's distribution yield?

FIAX's trailing-twelve-month yield is 8.23%, calculated from the sum of distributions over the past year divided by the current price.

How does FIAX's covered-call strategy work?

FIAX 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.

What is the duration of FIAX?

Effective duration measures FIAX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. FIAX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of FIAX?

FIAX's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.