AIPI Tracks The BITA Leaders Select Index,
Expanding REX’s Innovative ETF Lineup
REX Shares (“REX”), a leader in exchange-traded products, today
announces the launch of the REX AI Equity Premium Income ETF
(Nasdaq: AIPI). AIPI is designed to provide investors exposure to
leading AI companies while aiming for an enhanced monthly income*
using an advanced covered call strategy.
AIPI grants investors access to top U.S. artificial intelligence
(AI) technology companies through the BITA Leaders Select Index,
which includes pioneers in AI hardware, software, infrastructure,
and services. Utilizing a covered call strategy, AIPI sells
out-of-the-money call options to help generate income from premiums
which also allows for potential appreciation in the AI sector,
making AIPI an attractive option for growth and income
investors.
AIPI marks REX's second venture into covered call ETFs, building
on the momentum of the FANG & Equity Premium Innovation Index
ETF (Nasdaq: FEPI), which has accumulated over $225 million in
assets under management since inception in October.
“The AI revolution is transforming every industry and presents
vast investment potential. Building on our success with our covered
call FANG & Innovation ETF (ticker: FEPI), we launched AIPI to
allow investors to capitalize on these advancements owning the
stocks while using options to provide a steady income stream,” said
Scott Acheychek, COO of REX Shares. “We are excited to be working
with BITA on this product for the underlying index. This strategy
leverages the growth potential of key AI stocks and delivers
monthly income from companies that typically do not pay dividends,
potentially serving as a downside hedge during market dips. AIPI
exemplifies REX Shares' commitment to innovating the covered call
ETF landscape with specialized, options-based strategies that seek
to address investor needs of potential NAV growth &
income.”
For more information on REX Shares or AIPI, please visit
www.rexshares.com.
About REX Shares
REX is an innovative ETF provider specializing in
alternative-strategy ETFs and ETNs. The firm created MicroSectors™
and co-created the T-REX product lines of leveraged and inverse
tools for traders and recently launched a series of option-based
income strategies. The firm is rooted in decades of experience in
building solutions for investor and trader portfolios.
An investor should carefully consider a Fund’s investment
objective, risks, charges, and expenses before investing. The
Fund’s prospectus and summary prospectus contain this and other
information about REX Shares. To obtain a Fund’s prospectus and
summary prospectus call 844-802-4004. A Fund’s prospectus and
summary prospectus should be read carefully before
investing.
Important Risks
Sector Concentration Risk. The trading prices of the
Fund’s underlying securities may be highly volatile and could
continue to be subject to wide fluctuations in response to various
factors. The stock market in general, and the market for technology
companies in particular, where applicable, has experienced extreme
price and volume fluctuations that have often been unrelated or
disproportionate to the operating performance of those
companies.
Derivatives Risk. Derivatives are financial instruments
that derive value from the underlying reference asset or assets,
such as stocks, bonds, or funds (including ETFs), interest rates or
indexes. The Fund’s investments in derivatives may pose risks in
addition to, and greater than, those associated with directly
investing in securities or other ordinary investments, including
risk related to the market, imperfect correlation with underlying
investments or the Fund’s other portfolio holdings, higher price
volatility, lack of availability, counterparty risk, liquidity,
valuation, and legal restrictions.
Distribution Risk. As part of the Fund’s investment
objective, the Fund seeks to provide current monthly income. There
is no assurance that the Fund will make a distribution in any given
month. If the Fund does make distributions, the amounts of such
distributions will likely vary greatly from one distribution to the
next.
Call Writing Strategy Risk. The path dependency (i.e.,
the continued use) of the Fund’s call writing strategy will impact
the extent to which the Fund participates in the positive price
returns of the individual stocks comprising the Index and, in turn,
the Fund’s returns, both during the term of the sold call options
and over longer time periods.
Technology Industry Risk. The stock prices of technology
and technology-related companies and, therefore, the value of the
Fund, may experience significant price movements as a result of
intense market volatility, worldwide competition, consumer
preferences, product compatibility, product obsolescence,
government regulation, excessive investor optimism or pessimism, or
other factors.
Liquidity Risk. Some securities held by the Fund,
including options contracts, may be difficult to sell or be
illiquid, particularly during times of market turmoil. This risk is
greater for the Fund as it will hold options contracts on a single
security, and not a broader range of options contracts.
New Fund Risk. The Fund is a recently organized
management investment company with no operating history. As a
result, prospective investors do not have a track record or history
on which to base their investment decisions.
Index: BITA AI Leaders Select Index is a rules-based
composite index that tracks the market performance of companies,
listed on recognized exchanges based in the US, that are at the
forefront of AI technologies.
Out of the Money Option: An out of the money call option
has a strike price that is higher than the price of the underlying
asset.
Call Option: Call options are financial contracts that
give the buyer the right—but not the obligation—to buy a stock,
bond, commodity, or other asset or instrument at a specified price
within a specific period.
The REX Shares ETFs are distributed by Foreside Fund Services,
LLC, not affiliated with Rex Shares, LLC, or its affiliates.
*The fund intends to make distributions, if any, on a monthly
basis.
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version on businesswire.com: https://www.businesswire.com/news/home/20240604013805/en/
For media inquiries, please contact: Gregory FCA for REX Shares
rexshares@gregoryfca.com
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