REX Financial rolled out its latest batch of Growth & Income Covered Call ETFs this week-headlined by the launch of the REX Palantir Growth & Income ETF (BATS:PLTI). The debut came at a rather inopportune time, however, as AI stocks abruptly reversed course after Palantir led Tuesday’s selloff that wiped out much of the sector’s early-week gains.
Along with PLTI, REX rolled out four more single-stock funds: the REX WMT Growth & Income ETF (BATS:WMTI), REX LLY Growth & Income ETF (BATS:LLII), REX HOOD Growth & Income ETF (BATS:HOII) and the REX CRWV Growth & Income ETF (BATS:CWII). They join an expanding lineup.
Each fund provides 1.25x notional exposure to a single stock through a synthetic, option-based structure. The funds sell out-of-the-money call options on roughly half that exposure in a bid to deliver a weekly income while leaving the rest open for a potential upside.
“The Growth & Income Covered Call suite is designed for modern income investors who want more than a binary choice between yield and participation,” said Greg King, CEO and Founder of REX Financial.
AI Euphoria Cools As Palantir Stumbles
The selloff for Palantir arrived just when enthusiasm for AI-linked names was peaking. After surging through Monday thanks to optimism related to its Artificial Intelligence Platform (AIP) and expanding U.S. government contracts, by Tuesday profit-taking had deeply hit the sector and sent AI giants, including Palantir, into the red.
The timing makes PLTI’s debut a test of investor conviction in the AI trade. For those still bullish but wary of volatility, REX’s structure offers a way to stay in the Palantir story - while collecting weekly income from option premiums.
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