Westwood Salient Enhanced Energy Income ETF

Frequently Asked Questions About WEEI

What does WEEI invest in?

WEEI is an actively managed fund that aims to invest in equity securities of North American energy companies. Stocks considered for the portfolio engage in the oil, gas, consumable fuels, or energy equipment and services. The funds advisor uses a bottom-up framework focusing on fundamental criteria such as cash flow and growth projections to select 20-25 stocks. Single stock covered call writing strategy is also employed, aiming to provide monthly income and capital appreciation. In addition, the strategy aims for 10-20% less volatility and beta than the S&P Energy Select Sector Index. The call options written are typically 1-month contracts, averaging 3-5% out-of-the-money, and sold on a monthly recurring basis.

What is the expense ratio of WEEI?

Westwood Salient Enhanced Energy Income ETF (WEEI) charges an expense ratio of 0.85%. This is the annual fee deducted from fund assets to cover management and operations.

What is WEEI's distribution yield?

WEEI's trailing-twelve-month yield is 10.86%, calculated from the sum of distributions over the past year divided by the current price.

How does WEEI's covered-call strategy work?

WEEI 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 WEEI?

Westwood Salient Enhanced Energy Income ETF (WEEI) manages $28.7M 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 WEEI actively managed or an index fund?

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