REX IncomeMax Option Strategy ETF

Frequently Asked Questions About ULTI

What does ULTI invest in?

The REX IncomeMax Option Strategy ETF (ULTI) strives to deliver regular weekly income by integrating exposure to equities, active options trading, and investments in short-duration U.S. government bonds. Its underlying portfolio consists of 15 to 30 American-listed company stocks, or comparable synthetic positions created using options. Security selection is driven by a systematic quantitative methodology, pinpointing companies with elevated implied volatility and robust liquidity to maximize both option premium earnings and dividend yields. The fund's main source of revenue comes from sophisticated options strategies, including the sale of covered call options, the issuance of put options, and the deployment of call spreads to capture premium income. While this method aims for consistent distributions, it inherently limits profit potential when stock prices experience significant upward trends. To manage downside exposure, each option written is strategically balanced with a lower-delta purchased option, thereby cushioning against potential losses during market downturns. Furthermore, as much as 10% of the fund's assets may be held in short-term U.S. Treasuries or cash, serving as crucial collateral and generating additional interest income.

What is the expense ratio of ULTI?

REX IncomeMax Option Strategy ETF (ULTI) charges an expense ratio of 1.32%. This is the annual fee deducted from fund assets to cover management and operations.

What is ULTI's distribution yield?

ULTI's trailing-twelve-month yield is 166.56%, 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 ULTI's covered-call strategy work?

ULTI 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 ULTI?

REX IncomeMax Option Strategy ETF (ULTI) manages $14.4M 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 ULTI actively managed or an index fund?

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