Parametric Equity Plus ETF

Frequently Asked Questions About PEPS

What does PEPS invest in?

PEPS is an actively managed fund that aims for long-term capital appreciation by primarily investing in a portfolio of large US companies. Specifically, it holds stocks found within the Solactive GBS United States 500 Index. A key element of its strategy involves a beta-neutral call overwriting approach, where the fund sells short-dated, out-of-the-money call options on the S&P 500 Index. This options strategy is paired with compensatory long equity exposure, which includes positions in S&P 500 Index futures, FLEX Options referencing the S&P 500 Index, and the SPY ETF. The fund's overall performance is predominantly driven by its equity holdings. To avoid straddle rule implications, PEPS carefully limits the overlap between its equity investments and the underlying components of its options. It also implements tax loss harvesting strategies within its equity portfolio. While the sale of call options may lead to foregoing some upside market participation, the fund's sub-adviser proactively seeks to ladder these written call positions to lessen this potential limitation.

What is the expense ratio of PEPS?

Parametric Equity Plus ETF (PEPS) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

How big is PEPS?

Parametric Equity Plus ETF (PEPS) manages $29.1M 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 PEPS actively managed or an index fund?

PEPS is actively managed — the manager selects holdings rather than tracking an index. Active funds typically charge higher expense ratios than index funds (PEPS's is 0.10%) in exchange for the discretion to over- or under-weight positions.

When was PEPS launched?

Parametric Equity Plus ETF (PEPS) launched in November 2024 and is managed by Eaton Vance.

How has PEPS performed?

PEPS's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.