SEATTLE--(BUSINESS WIRE)--TappAlpha, a fintech company aiming to make sophisticated investing accessible, today announced the launch of its first exchange-traded fund, the TappAlpha SPY Growth & Daily Income ETF (NASDAQ: TSPY). This innovative ETF combines the exposure associated with SPY (subject to limits on potential capital gains) with consistent opportunities for potential income generation.
TSPY's distinct value lies in its daily covered call strategy that identifies the optimal strike price daily based on market volatility, historical data and other factors, aiming to boost returns beyond typical S&P 500 tracking while still capturing a portion of SPY's upside. By writing call options with daily expirations, TSPY capitalizes on the rapid time decay of these options, ensuring investors can harness the most value from risk-appropriate options positions. Daily expirations can also minimize prolonged market exposure, reducing unfavorable shifts in the underlying security that could result in losses.
“With TSPY, our goal is to open the door to Wall Street-caliber strategies for investors looking to combine growth and income in their portfolios,” said Si Katara, CEO of TappAlpha. “Amid the uncertainty around the trajectory of interest rates, demand remains strong for added income opportunities. TSPY provides investors with an adaptive solution for income generation regardless of market and economic conditions.”
TSPY is intended for a broad range of investors, from financial advisors seeking to diversify client portfolios to retail investors aiming for a balanced approach to capital appreciation and income. With anticipated monthly distributions and eligibility for all registered and non- registered investment accounts, TSPY is a versatile investment option offered at a management fee of 0.68%.
Founded in 2023 by tech entrepreneur Si Katara, TappAlpha is an emerging fintech company dedicated to democratizing sophisticated investing strategies. Combining over 25 years of software innovation with a commitment to financial education, TappAlpha provides accessible solutions for financial advisors and everyday investors.
To learn more about TappAlpha and TSPY, please visit TappAlphaFunds.com.
About TappAlpha
Founded in 2023, TappAlpha is a Seattle-based fintech company committed to making advanced financial tools and education accessible to everyone. By making investing simple, actionable, and transparent, TappAlpha seeks to enable users to unlock potential income and achieve their financial goals. The company is built on a foundation of empathy and trust, ensuring a customer-first approach in all its initiatives.
Disclosures
Investing involves risk. Loss of principal possible.
Investors should carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus and summary prospectus, which may be obtained by visiting TappAlpha.com. Read the prospectus and summary prospectus carefully before investing.
The Fund currently expects, but does not guarantee, to make distributions on a monthly basis. These distributions may exceed the Fund’s income and gains for the Fund’s taxable year. Distributions in excess of the Fund’s current and accumulated earnings and profits will be treated as a return of capital.
Referenced Index Risk. The Fund invests in options contracts that are based on the value of the Index, including SPX and XSP options. This subjects the Fund to certain of the same risks as if it owned shares of companies that comprised the Index, even though it does not own shares of companies in the Index. The price of equity securities may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting individual companies, sectors or industries selected for the Fund's portfolio or the securities market as a whole, such as changes in economic or political conditions.
Call Options Risk. When the Fund sells call options, it receives cash but limits its opportunity to profit from an increase in the market value of the underlying security prior to the expiration of the options. The maximum potential gain on the underlying security will be equal to the difference between the strike price and the purchase price of the underlying security at the time the option is written, plus the premium received. If the underlying security declines by more than the option premium the Fund receives, there will be a loss on the overall position. For the Fund in particular, the value of the options contracts in which it invests are substantially influenced by the value of the Index.
ETF Risk. ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Read the Principal Risk section of the prospectus for a complete listing of fund-specific risks.
Daily Covered Call Strategy (0DTE) Risk. Due to the short time until their expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with more time until expiration. Because of this, the timing of trades utilizing 0DTE options becomes more critical. Even a slight delay in the execution of 0DTE trades can significantly impact the outcome of the trade. 0DTE options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at desired prices. The bid-ask spreads on 0DTE options can be wider than with traditional options, increasing the Fund’s transaction costs and negatively affecting its returns. These risks may negatively impact the performance of the fund.
High Portfolio Turnover Risk. The Fund may incur high portfolio turnover to manage the Fund’s investment exposure. Additionally, active market trading of the Fund’s Shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected.
Non-Diversification Risk. The Fund is classified as “non-diversified” under the 1940 Act. The Fund seeks to achieve its investment objective by entering into one or more options contracts. The Fund may invest a relatively high percentage of its assets in a limited number of issuers and/or in options contracts with a single counterparty or a few counterparties. As a result, the Fund may experience increased volatility and be more susceptible to a single economic or regulatory occurrence affecting one or more of these issuers and/or counterparties.
The Fund, Trust, Adviser, and Sub-Adviser are not affiliated with nor endorsed by SPY or the S&P 500® Index.
Distributed by Foreside Fund Services, LLC
