Rex FANG Innovation Premium Income ETF (FEPI)
NASDAQ (NMS) NASDAQ (NMS) Primary 
FEPI: High Tech, High Income, Both Good Things For 2026
REX FANG & Innovation Equity Premium Income ETF offers a 25% annual distribution rate via a covered call strategy on the 'Magnificent 15' innovation stocks. FEPI's high income comes at the cost of capped upside, with lagging performance versus uncovered indexes, but provides high monthly distributions. The fund maintains equal-weighted, US-based large- and mega-cap holdings, with a heavy tilt toward technology and communication services.
FEPI: Rare Moment When 25%+ Yield Is Suitable For Durable Income Investors
REX FANG & Innovation Equity Premium Income ETF offers a yield of ~25%. Optically, this looks like a value trap or covered call ETF with a clear NAV erosion dynamic. Yet, as I detail it in the article, FEPI is different.
FEPI: Tax-Efficient Income From A Buy-And-Hold Option ETF
FEPI offers a compelling 25% yield with monthly distributions, making it attractive for income-focused investors seeking lower volatility and capital preservation. The ETF's strategy of holding common shares and writing OTM options allows for some growth participation while limiting capital erosion compared to synthetic peers. FEPI's distributions are tax-efficient, primarily classified as return of capital, helping investors defer taxes and potentially recover their initial investment within four years.
25%+ Monthly Yielding Picks: One To Buy, One To Avoid
Usually, everything that offers a double digit dividend yield carries an elevated risk of being a value trap. If we speak about 25%+ yield zone, then I would say that '99%' of cases are just that - i.e., value traps. However, there are some very rare exceptions out there.
FEPI: Just Don't Look At 'What Ifs'
REX FANG & Innovation Equity Premium Income ETF offers a high 25% yield by writing covered calls on 15 mega-cap tech stocks, appealing to income-focused investors. The fund's strategy sacrifices significant upside potential compared to simply holding the underlying stocks, which may frustrate growth-oriented investors. I appreciate FEPI's steady distributions and relatively mild NAV erosion, though the non-core stock selection based on trading volume is a drawback.
Get Paid Weekly From A Variety Of Options Income ETFs
Weekly income ETFs are booming, with new funds leveraging 0DTE options strategies to generate high-yield, frequent distributions for passive income seekers. Roundhill, YieldMax, Rex Shares, and GraniteShares have all launched innovative ETFs offering weekly payouts, each with unique strategies and underlying assets. While yields are attractive—some exceeding 20% annually—these funds are new, so investors should monitor performance and understand the risks involved.
FEPI: A Concentrated Tech Income Play With Structural Weaknesses
FEPI offers high yield (25-35%) via call writing on a concentrated tech portfolio, but this aggressive payout erodes NAV over time. Stock selection methodology is interesting, blending FANG/Mag 7 with high-volume tech names, but lacks clarity on future rebalancing. Performance and drawdown management are weak; FEPI underperforms in both bullish and corrective markets compared to peers.
FEPI: Gigantic Tech Yield, But Don't Ignore The Downside Risk
FEPI's 28% yield is eye-catching, but its aggressive covered call strategy leads to significant price erosion and downside risk over time. The ETF's heavy exposure to slow-growing, overvalued tech giants like Tesla and Apple increases vulnerability to market corrections and valuation resets. April's market sell-off highlighted FEPI's limited upside and pronounced downside, as it failed to recover like broader tech indices or peer ETFs.
FEPI: Dissecting The 'Mag 15' Income Strategy
The REX FANG & Innovation Equity Premium Income ETF (FEPI) was previously flagged as risky and potentially underperforming against diversified tech indices during market downturns. After April's market turmoil, I take a look at FEPI's performance and future prospects. The analysis takes a look at the inner workings of FEPI, how components are chosen, and what current options positions look like.
FEPI: There Is No Magic Investment With High Total Returns And High Distribution Yields
FEPI ETF offers a high distribution yield of 25–30%, but this yield is misleading due to the inherent risks of its covered-call strategy. The fund's strategy involves owning top tech stocks and writing covered calls, which can limit upside potential in exchange for premium income. Historical data shows that covered-call strategies, like those used by FEPI, often underperform due to poor upside capture, as seen with similar indices.
FEPI: This ~30% Yield Is Less Risky Than You Might Think
My January bullish thesis on the REX FANG & Innovation Equity Premium Income ETF was based on a sideways Nasdaq 100 market, which didn't materialize. Yet, what was surprising to see is the FEPI's underperformance (relative to QQQ) even though it has the benefit of option premiums that could offset part of the downside move. In this article, I explain in more detail why FEPI failed to deliver on its promise to provide a buffer in a declining market environment.
FEPI: Mag7 Exposure With A 30% Yield
REX FANG & Innovation Equity Premium Income ETF offers a 30% dividend yield by employing a covered call strategy on major tech stocks. FEPI's portfolio includes significant holdings in Mag 7 stocks like Netflix, Meta, Amazon, and Tesla, with a 20% cash position. The covered call strategy limits upside potential while providing high income.
