Kurv Yield Premium Strategy Tesla ETF

Frequently Asked Questions About TSLP

What does TSLP invest in?

TSLP aims to generate monthly income while providing exposure to the price returns of Tesla stock (TSLA), subject to a cap on potential gains. The fund utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, which consists of three elements: i) synthetic long exposure, ii) covered call writing, and iii) short-term fixed income instruments. The synthetic long exposure seeks to replicate the price movements of TSLA by purchasing and selling at-the-money calls and puts with one-month to one-year terms. To generate income, the fund writes out-of-the-money call options with similar expirations and a strike price approximately 5%-15% above TSLA's share price. This limits participation in potential gains if TSLA shares increase in value. The short put positions fully expose investors to the downside of the stock. The fund may also invest directly in TSLA shares and the combined direct and synthetic long position will not exceed 100% of net assets.

What is the expense ratio of TSLP?

Kurv Yield Premium Strategy Tesla ETF (TSLP) charges an expense ratio of 1.15%. This is the annual fee deducted from fund assets to cover management and operations.

What is TSLP's distribution yield?

TSLP's trailing-twelve-month yield is 32.06%, 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 TSLP's covered-call strategy work?

TSLP 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 TSLP?

Kurv Yield Premium Strategy Tesla ETF (TSLP) manages $17.3M 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 TSLP actively managed or an index fund?

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