- What does SCEP invest in?
- SCEP actively manages a portfolio of US large- and mid-cap equities with an options overlay strategy. The fund employs a system-driven, bottom-up research approach in evaluating investments. It uses quantitative measures and valuation, such as AI-driven predictions of volatility, earnings and dividend growth, as well as traditional factors (earnings growth, momentum, relative price strength, value, size, quality). Stock selection focuses on companies with strong capital growth prospects and may emphasize sustainable dividend yield and quality, with consideration to ESG factors. To generate income and mitigate risk, SCEP uses an option overlay strategy, writing out-of-the-money call options on up to 100% of the portfolio. For downside risk mitigation and capital preservation, it applies protective put option strategies.
- What is the expense ratio of SCEP?
- Sterling Capital Hedged Equity Premium Income ETF (SCEP) charges an expense ratio of 0.65%. This is the annual fee deducted from fund assets to cover management and operations.
- What is SCEP's distribution yield?
- SCEP's trailing-twelve-month yield is 4.00%, calculated from the sum of distributions over the past year divided by the current price.
- How does SCEP's covered-call strategy work?
- SCEP 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 SCEP?
- Sterling Capital Hedged Equity Premium Income ETF (SCEP) manages $214.7M 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 SCEP actively managed or an index fund?
- SCEP's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
