AIPI ETF

REX AI Equity Premium Income ETF offers a 35% yield by investing in top AI stocks and writing call options, making it suitable for aggressive income investors. The fund's concentrated portfolio of 25 stocks, including NVIDIA and Palantir, presents both high potential and significant risks. AIPI's consistent income distribution and favorable tax treatment through return-of-capital dividends are key advantages.

The REX AI Equity Premium Income ETF offers exposure to AI stocks with a covered call strategy, providing a high dividend yield but capping upside potential. AIPI's strategy involves writing covered calls on 100% of its holdings, primarily using out-of-the-money options. The fund's high yield, currently at 34.8%, is primarily funded by return of capital, raising concerns about long-term sustainability.

REX Shares' AIPI ETF, launched in June 2024, holds AI-centric stocks and writes OTM covered calls on its individual holdings. AIPI leverages high volatility in individual tech stocks to generate substantial option premiums, outperforming indices like the NASDAQ 100 and S&P 500 while offering 30%+ yields. Significant sector concentration risk and the nature of its underlying index make writing covered calls on the stocks a long-term risk.

The Dividend Harvesting Portfolio hit new highs, generating $1,764.21 in forward dividend income, with a 24.70% return on invested capital. Added to NEOS S&P 500 High Income ETF and NEOS Nasdaq-100 High Income ETF, boosting forward dividend income by $19.58. Despite potential market volatility, I remain focused on adding income-producing assets and reinvesting dividends to capitalize on compounding effects.