- What does LDRX invest in?
- LDRX seeks total return in the large-cap equity space with a short-term options overlay. The fund targets companies considered market leaders or those exhibiting improving business fundamentals and favorable financial characteristics such as low earnings variability, attractive valuation ratios, and manageable leverage. The fund writes deep out-of-the-money call and put options, typically with 1-7 day expirations, on broad market indices like the S&P 500 to enhance income. The strategy aims to capture premium income from contracts that are likely to expire worthless, though it also limits upside participation and introduces downside risk in volatile markets. The fund may also hold ETFs, hold short-term US Treasuries as collateral, and lend securities for additional income. As a defensive measure, assets may fully shift to cash. Before May 5, 2025, LDRX was a mutual fund called Chestnut Street Exchange Fund before converting to an ETF structure, starting with $166.93 million in assets.
- What is the expense ratio of LDRX?
- SGI Enhanced Market Leaders ETF (LDRX) charges an expense ratio of 0.50%. This is the annual fee deducted from fund assets to cover management and operations.
- What is LDRX's distribution yield?
- LDRX's trailing-twelve-month yield is 1.10%, calculated from the sum of distributions over the past year divided by the current price.
- How does LDRX's covered-call strategy work?
- LDRX 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 LDRX?
- SGI Enhanced Market Leaders ETF (LDRX) manages $200.6M 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 LDRX actively managed or an index fund?
- LDRX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
