xETFs has launched its first two ETFs, entering the increasingly crowded single-stock income ETF market with a structure designed to balance equity upside participation and recurring income generation. The new funds — xETFs NVDA Daily Income ETF (NYSE:NYYY) and xETFs TSLA Daily Income ETF (NYSE:TYYY) — use systematic daily covered call strategies tied to shares of Nvidia Corp (NASDAQ:NVDA) and Tesla, Inc (NASDAQ:TSLA).
The launch comes as investor demand for high-income option-based ETFs continues to accelerate, particularly around volatile mega-cap technology names linked to AI and electric vehicles. Unlike many existing covered-call single-stock products that cap upside participation more aggressively, xETFs said its Daily Income suite aims to preserve a larger share of equity returns while still generating income through daily call-option writing.
"For investors interested in maintaining exposure to the return of these iconic stocks while also accessing potentially significant ongoing income, NYYY and TYYY are two very compelling additions to the ETF landscape," said Johnny Wu, co-founder and CEO of xETFs.
Key Features Of The New ETFs
- NYYY and TYYY seek to provide both current income and single-stock equity exposure.
- The ETFs implement a systematic daily options-writing strategy.
- Funds write call options daily to generate income.
- Distributions are paid on a weekly basis.
- The strategies seek to retain at least 75% intra-day equity participation.
- Initial target for intra-day equity participation is 90%.
- The funds sell up to 25% notional value of options.
- Initial options exposure target is 10% notional value.
- By closing option positions daily, the ETFs maintain full overnight and weekend long exposure to the underlying stocks.
xETFs plans a broader multi-phase rollout focused on institutional-style ETF strategies for retail investors.
Image created using artificial intelligence via DALL-E.