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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Contacts
For media inquiries, please contact:
Gregory FCA for REX Shares
rexshares@gregoryfca.com