TappAlpha has expanded its options-based ETF lineup with the launch of the TappAlpha Cboe Magnificent 10 Growth & Daily Income ETF (BATS:TMGN), a fund designed to provide exposure to AI mega-cap leaders while generating tax-efficient daily income through an options overlay.
The launch comes shortly after the asset manager surpassed $500 million in assets under management, marking another milestone in the firm’s growth-focused ETF business. TMGN seeks to give investors access to a portfolio of leading technology and artificial intelligence companies without requiring them to choose between long-term equity exposure and income generation.
According to TappAlpha Founder and CEO Si Katara, the Growth + Income strategy has gained traction as investors increasingly look to remain invested in equities while creating consistent cash flow. The underlying Cboe Magnificent 10 Index is an equal-weighted benchmark comprising Nvidia Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT), Apple, Inc (NASDAQ:AAPL), Amazon.com, Inc (NASDAQ:AMZN), Alphabet, Inc (NASDAQ:GOOGL), Meta Platforms, Inc (NASDAQ:META), Tesla, Inc (NASDAQ:TSLA), Broadcom, Inc (NASDAQ:AVGO), Advanced Micro Devices Inc (NASDAQ:AMD), and Palantir Technologies (NASDAQ:PLTR), with constituents changing only in the event of specific corporate actions.
Key features of TMGN
- Investment objective: Exposure to the Cboe Magnificent 10 Index combined with TappAlpha’s options-based daily Growth + Income strategy
- Income approach: Seeks to generate tax-efficient daily income while maintaining core equity exposure
- Underlying index: Equal-weighted Cboe Magnificent 10 Index (MGTN Index)
- Index holdings: Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, Tesla, Broadcom, Advanced Micro Devices, and Palantir Technologies.
Current TappAlpha Growth + Income lineup includes TappAlpha S&P 500 Growth & Daily Income ETF (NASDAQ:TSPY), TappAlpha Innovation 100 Growth & Daily Income ETF (BATS:TDAQ), TSPY Lift ETF (NASDAQ:TSYX), TDAQ Lift ETF (BATS:TDAX), and the newly launched TMGN.
Cboe Global Markets’ Global Head of Derivatives, Rob Hocking, said investor demand for derivatives-based strategies tied to mega-cap growth stocks has increased alongside the adoption of short-dated index options, highlighting growing industry interest in income-generating equity strategies.
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