fepi stock FEPI ETF Guide

FEPI — REX FANG & Innovation Equity Premium Income ETF

Keyword in first 100 words: fepi stock

fepi stock is the common search term investors use when looking for the REX Shares ETF that combines exposure to large-cap “FANG” and innovation technology stocks with a covered-call (options overwriting) income strategy. This article explains what FEPI is, how it implements covered calls, what drives its distributions and risks to be aware of. Readers will learn where to verify fund facts, what to watch in trading, and how the fund compares to alternative income or tech-focused ETFs. The content is neutral, factual, and meant for educational purposes; consult official filings for the latest data.

Fund profile

FEPI (ticker: FEPI) is an exchange-traded fund sponsored by REX Shares and advised by REX Advisers, LLC. It is listed on the NASDAQ Stock Market under the symbol FEPI and launched in October 2023. The ETF is structured as a U.S.-domiciled vehicle; issuer documentation also references UCITS variants for European distribution through partner platforms.

As of 2026-01-20, according to the REX Shares FEPI fact sheet and NASDAQ listing, FEPI trades under the ticker FEPI, reports a management fee/expense ratio in the region of 0.65%, and distributes monthly income to shareholders. For the most current AUM, shares outstanding and exact holdings count, consult the latest issuer fact sheet or regulatory filings because these figures fluctuate with market moves and periodic reconstitution.

As of 2026-01-20, according to NASDAQ and the FEPI product page, the fund’s key administrative identifiers are:

• Ticker: FEPI
• Sponsor / Issuer: REX Shares; investment adviser: REX Advisers, LLC
• Exchange: NASDAQ
• Inception / Launch date: October 2023 (issuer launch announcement)
• Domicile: U.S. ETF (with UCITS / European distribution noted for variants)
• Distribution frequency: Monthly
• Expense ratio: 0.65% (management fee/TER as reported)

Investors should verify up-to-date CUSIP/ISIN, AUM, and shares outstanding on the official fund fact sheet or SEC filings before making decisions.

Investment objective and strategy

FEPI’s stated objective is to seek capital appreciation and current income by owning a portfolio of large-cap innovation and FANG-related equities while selling (writing) call options on those holdings to generate option premium. The ETF provides direct long exposure to a defined technology/innovation index or eligible universe (commonly tied to a Solactive FANG Innovation Index or equivalent) and overlays an options overwriting strategy to enhance income generation.

The manager’s core approach is straightforward:

• Hold a diversified basket of large-cap innovation and FANG-related stocks (e.g., major software, semiconductor, internet and communication services companies).
• Sell call options against either individual holdings or a basket to receive premium income.
• Use collected option premiums to supplement dividends and fund monthly distributions.

This hybrid aims to balance participation in upside from underlying equities with the steady income that option premiums can supply — at the cost of potentially capping upside when options are exercised.

Covered-call implementation

FEPI implements a covered-call (options overwriting) program to generate distributable income. Key operational details commonly disclosed by issuers and relevant for FEPI include:

• Underlying for options: Options can be written on individual stocks held in the portfolio or on a basket/index representing the portfolio. FEPI’s literature indicates that the fund writes options linked to the equities it owns; confirm the prospectus for exact implementation details.
• Moneyness (strike selection): Product literature for similar ETFs typically targets calls that are at-the-money (ATM) to modestly out-of-the-money (OTM). FEPI documentation notes writing calls that may be up to approximately 5%–10% out-of-the-money in certain instances; specific strike policy is set by the manager and varies by period and market conditions.
• Frequency / timing: Calls are typically sold on a periodic basis (monthly or in alignment with distribution schedule) and can be rotated to manage expiration cycles. The manager times option sales to balance income capture with maintaining equity exposure across market cycles.
• Upside participation vs income trade-off: Writing calls generates immediate premium income that supports monthly distributions but limits upside participation above the strike price. If the underlying stock rallies beyond the strike, shares may be called away, capping capital gains for ETF holders but locking in option premium plus any capital appreciation up to the strike.
• Exercise and assignment: If options are exercised, the fund may deliver the underlying shares and realize capital gains (or potentially short-term gains depending on holding period). The ETF manager may then reestablish positions if consistent with strategy.

Implications: The covered-call overlay typically results in higher current income versus a plain long equity ETF but reduces long-term upside in sharply rising markets. It can also reduce portfolio volatility and sometimes provide downside buffer via premium income, though premiums do not fully offset large market declines.

Index, eligible universe, and holdings

FEPI’s equity sleeve targets large-cap innovation and “FANG” style names, commonly aligning with or drawing from a Solactive FANG Innovation Index or a similarly defined large-cap technology/innovation universe. Selection and weighting criteria generally prioritize market-capitalization, liquidity, and membership in technology and communication services sectors.

Typical characteristics of the eligible universe and benchmark:

• Large-cap U.S. technology and innovation companies; sector concentration in Technology and Communication Services.
• Selection based on market-cap, liquidity filters, and thematic inclusion (innovation, internet platforms, semiconductors, cloud and software leaders).
• Weighting that may be market-cap tilted but constrained by manager guidelines to avoid excessive concentration in a single name.

Top holdings often reported for FEPI-style baskets include major technology giants such as Apple, Microsoft, NVIDIA, Alphabet (Class A and C), Amazon, and Meta Platforms. These names frequently comprise a material portion of the ETF’s equity exposure due to their large market capitalization and representation of the innovation theme.

As of 2026-01-20, according to the FEPI fact sheet and public listings (REX Shares product page and NASDAQ data), the ETF’s sector weightings are heavily tilted toward Technology and Communication Services; for exact current top 10 holdings and weightings check the latest fund facts.

Portfolio construction and risk management

Portfolio construction for FEPI combines equity selection and options overlay in a coordinated process:

• Position sizing and diversification: The manager generally seeks to hold a diversified set of large-cap innovation names. Typical covered-call ETFs maintain anywhere from a couple dozen to several dozen holdings to balance sector exposure with concentration risk controls.
• Concentration limits: Issuer documentation often contains policies limiting single-name concentration (for example, maximum weight per issuer). Investors should consult the prospectus and fact sheet for FEPI’s specific concentration caps.
• Options as risk-management tools: Writing calls reduces net exposure to rapid upside moves and provides limited buffer through option premium against moderate downside, but options can also introduce path-dependent outcomes and realized gains/losses on assignment and closing transactions.
• Rebalancing: The fund is rebalanced periodically to maintain index alignment and target weighting, along with option program adjustments timed to option expiries and distribution cycles.

The manager’s objective is to balance income generation (via premiums) with capital appreciation from the equity sleeve, accepting the trade-off that option overwriting can cap upside in strong bull markets.

Distributions and yield

FEPI distributes income monthly. Distribution mechanics and yield presentation typically involve multiple metrics:

• Distribution frequency: Monthly distributions are paid from option premium income, dividends from constituents, and realized gains when applicable.
• Reported distribution rate: Many issuers report a trailing or most-recent distribution annualized (multiply the most recent monthly distribution by 12) to provide a headline distribution rate. This rate is not a guarantee and fluctuates with option income and realized gains/losses.
• 30-day SEC yield vs reported rate: The 30‑day SEC yield (or SEC standardized yield) is a regulatory metric that annualizes recent yield and accounts for expenses; it differs from the simple annualized distribution figure. SEC yield is typically lower or higher depending on timing and realized returns. Investors should compare both to understand recent income performance and sustainability.
• Composition of distributions: Distributions can be composed of ordinary income (option premiums and dividends), net capital gains (from realized gains on securities or option assignments), and potentially return of capital (ROC) when distributions exceed taxable income. Issuers must disclose distribution composition; check periodic notices and Form 19a-1 if ROC is present.

As of 2026-01-20, according to REX Shares product disclosures, FEPI distributes monthly and provides periodic updates on distribution composition; investors should review the fund’s 19a-1 notices and semi-annual reports for the exact mix of ordinary income, capital gains, and ROC for recent distributions.

Fees and expenses

FEPI’s headline expense ratio is reported at approximately 0.65% (management fee / total expense ratio) as shown on issuer materials. Beyond the stated TER, investors should account for implicit costs:

• Option transaction costs: Bid-ask spreads and execution costs when writing and closing option positions can reduce net returns.
• Bid-ask spreads in ETF shares: Particularly for less liquid ETFs, market spread can increase trading costs for secondary-market investors.
• Tracking and market impacts: The cost of rebalancing and managing option overlays is reflected in performance versus a pure index.

Always consult the prospectus for full fee tables, including any acquired fund fees and other expenses that affect net returns.

Performance and historical price data

When evaluating FEPI performance, consider multiple measures:

• NAV total return vs market price total return: NAV return reflects underlying portfolio performance and option outcomes; market price returns also incorporate premium/discount to NAV.
• Distribution-adjusted returns: For income-focused ETFs, returns should include distributed income to reflect total return.
• Time horizons: Typical reporting includes year-to-date (YTD), 1-year, 3-year, 5-year returns where available. Since FEPI launched in October 2023, multi-year metrics are limited by inception date.
• Volatility and beta: Data providers commonly show standard deviation, beta vs broad market indices, and drawdown metrics to assess risk-return profile.

To obtain up-to-date historical NAV series, market price charts and distribution history, consult ETF analytics pages on issuer and major data providers. As of 2026-01-20, fund performance metrics and comparisons are available in the REX Shares performance table and NASDAQ quote pages.

Trading and liquidity

Practical trading considerations for FEPI include:

• Average daily trading volume: Liquidity varies over time. Check real-time quote pages for the latest volume metrics. Higher AUM and trading volume generally produce tighter bid-ask spreads.
• Bid-ask spread: Narrow spreads reduce transaction costs. For lower-volume ETFs, spreads can widen; use limit orders to control execution price.
• Premium / discount to NAV: Covered-call ETFs can trade at consistent premiums or discounts to NAV depending on market demand and secondary-market liquidity. Watch for persistent deviations from NAV when planning purchases.
• Option trading on the ETF: Some ETFs have listed options on the ETF itself, enabling additional strategies. Check whether FEPI options are available on options exchanges; if so, these can be used for hedging or income by sophisticated investors.
• Secondary-market execution: Investors can buy FEPI shares via brokerage channels or exchanges that support U.S. ETFs. For users of Bitget, consider the trading and custody products the platform offers for ETFs and equities where available.

As of 2026-01-20, according to NASDAQ quote pages and StockAnalysis data, check daily volume and spread metrics before executing large trades.

Risks

Principal risks associated with FEPI include but are not limited to:

• Covered-call strategy risk: The overwriting strategy limits upside potential because call options sold can be exercised, capping gains above strike prices.
• NAV erosion risk: In prolonged bull markets, option premiums may not fully capture the large upside, leading to underperformance relative to a plain long equity index.
• Return-of-capital (ROC) risk: If distributions exceed realized income, portions of distributions may be treated as ROC, which can reduce the fund’s NAV and has tax implications.
• Concentration and sector risk: Heavy concentration in large-cap technology and communication services increases susceptibility to sector-specific downturns and single-name volatility.
• Options execution and counterparty risk: While exchange-traded options have standardized counterparty clearance, execution quality and spreads affect realized returns; strategy depends on reliable options markets.
• Tax and accounting complexity: Option profits, returns-of-capital, and realized gains generate complex tax reporting for shareholders.
• Market risk: Equity market downturns can cause losses that option premiums may not offset.

Investors should carefully read the prospectus and risk sections of fund documents to understand these and other fund-specific risks.

Tax treatment and investor considerations

Tax treatment for U.S. investors typically follows these points:

• Character of distributions: Portions of distributions can be ordinary income (from premiums and dividends), capital gains (from realized gains), or return of capital (ROC). The issuer will report distribution composition on Form 1099 or via periodic notices.
• Return of capital: ROC reduces cost basis in the investor’s shares; if cost basis reaches zero, subsequent ROC may be treated as capital gain. Always consult tax guidance for specific handling.
• Short-term vs long-term gains: Option-related realized gains may be short-term depending on holding periods, impacting tax rates.
• Non-U.S. investors: Tax treatment differs for non-resident aliens and investors in other jurisdictions; UCITS variants may offer different withholding treatments for EU investors.

As of 2026-01-20, investors should consult the FEPI prospectus, annual report and a qualified tax advisor to determine the tax consequences of investing in FEPI. The fund provides Form 19a-1 notices and distribution composition reports when applicable.

Regulatory filings and documentation

Key documents investors should review for FEPI include:

• Prospectus (and summary prospectus) — outlines objective, strategy, fees, and risks.
• Statement of Additional Information (SAI) — detailed operational and legal information.
• Annual and semi-annual reports — audited financial statements and distribution composition.
• Form N‑PORT/N‑CSR filings (periodic regulatory reports) and any 19a‑1 notices regarding distribution composition or ROC.
• SEC EDGAR filings for official submissions and disclosures.

As of 2026-01-20, these documents are available from the issuer and regulatory repositories; consult the issuer’s FEPI product page and SEC filings for the most current materials.

History and product developments

FEPI launched in October 2023 as REX Shares expanded its lineup of option-income and equity-premium ETFs. Since inception, product updates typically include monthly distribution statements, periodic fact sheet revisions, and any material changes announced via press releases or regulatory filings.

Notable milestones to verify in the fund history include launch date, any cross-listings or UCITS variants for Europe, and any material changes to the options program, distribution policy or fee structure. As of 2026-01-20, investors should consult issuer press releases and the FEPI fact sheet for a timeline of product developments.

Market reception, analysis, and controversies

Market commentary on FEPI-style covered-call funds often highlights two recurring themes:

• Praise: These funds attract investors seeking enhanced income from large-cap tech exposure. The steady monthly distributions can be attractive for income-focused portfolios, and option premiums may reduce short-term volatility.
• Criticism: Analysts warn about sustainability of very high distribution yields, risks of ROC, and potential underperformance in prolonged bull markets due to capped upside. Some commentary focuses on whether the yield is funded by recurring option income or by return of capital.

As of 2026-01-20, analyst pieces on FEPI appear across ETF research sites and investment commentary platforms; check recent coverage for yield sustainability debates and data-driven performance analyses.

Comparisons and alternatives

Investors comparing FEPI should consider similar covered-call, equity-premium or FANG/tech-income ETFs. Comparison criteria include:

• Yield and distribution frequency
• Expense ratio and explicit fees
• Holdings overlap and sector concentration
• Option implementation details (single-name vs basket, strike selection, frequency)
• Liquidity and bid-ask spread

Possible alternatives include other covered-call ETFs, technology-focused income funds, and single-stock covered-call products. Evaluate trade-offs between pure income and potential capital appreciation when selecting an alternative.

See also

• Covered-call strategy (call overwriting)
• Solactive FANG Innovation Index (benchmark context)
• List of income-oriented ETFs
• REX Shares ETF lineup and product facts

References

As of 2026-01-20, according to issuer and market data pages cited below, the factual points in this article were cross-checked with primary sources listed here. Readers should refer to these documents for verification:

• REX Shares FEPI product page and FEPI fact sheet (REX Shares)
• NASDAQ FEPI quote and listing information (NASDAQ)
• StockAnalysis FEPI profile and holdings summary (StockAnalysis)
• Yahoo Finance FEPI quote and historical data (Yahoo Finance)
• HANetf page for UCITS / European variant where applicable (HANetf)
• Morningstar / ETF data providers for performance and yield metrics (Morningstar)
• SEC filings, including prospectus, annual reports and Form 19a-1 notices (EDGAR)

Please consult the most recent versions of these primary documents when verifying figures like AUM, holdings, and distribution composition.

External links

For official and timely information, consult the following sources (search by name on your preferred data platform):

• REX Shares FEPI official product page and fact sheet
• NASDAQ FEPI quote page for real-time quotes and trade data
• FEPI prospectus and filings on the SEC EDGAR database
• Third-party analytics pages (Morningstar, StockAnalysis, Yahoo Finance) for historical price, NAV series, yield and risk metrics

Reporting notes: As of 2026-01-20, according to REX Shares and NASDAQ product pages, FEPI lists a 0.65% expense ratio, distributes monthly and launched in October 2023. For up-to-date AUM and holdings weightings consult the latest fact sheet and regulatory filings.

If you want to monitor fepi stock performance or trade FEPI in secondary markets, consider using a broker or trading platform that supports U.S. ETFs. For users of Bitget, check Bitget’s equities and trading services to see whether FEPI trading or related custody services are available. To dig deeper: download the issuer prospectus, review Form 19a-1 distribution notices, and follow monthly fact sheet updates.

Explore more ETF insights and strategy guides on Bitget’s learning portal to compare FEPI with other income-focused products and to better understand how covered-call overlays affect long-term returns.