Latest news with #ScottAcheychek
CNA
28-05-2025
- Business
- CNA
REX Financial launches covered call Nvidia ETF hours before earnings release
REX Financial launched a single-stock exchange-traded fund tied to Nvidia, the powerhouse chipmaker that has dominated stock market returns over the last two years, on Wednesday morning, hours ahead of the release of Nvidia's earnings. The new fund, the REX NVDA Growth & Income ETF is a form of covered call ETF that uses option strategies to generate income while at the same time giving investors exposure to a portion of the upside in Nvidia's stock price, REX said. "We think it will allow people to have their cake and eat it, too," said Scott Acheychek, REX's chief operating officer. "They can stick with the stock that they follow and know and like, but with a risk profile that they're comfortable with and some weekly income" from the sale of options on Nvidia, he said. These single-stock option-based ETFs made their debut in late 2023, and now have about $10 billion in total assets. Overall interest in single-stock ETFs, a broader category that includes 1.5x or 2x leveraged products, continues to grow, said Bryan Armour, ETF analyst at Morningstar. "They're all aimed at self-directed individual investors," Armour said. While an ETF with this kind of structure likely would outperform the underlying stock if that stock is flat to lower, Armour said it makes more sense for investors either to buy individual stocks outright or to turn to options-based ETF strategies that are tied to broader portfolios. "A product like this is not trying to maximize either growth or income." Acheychek said this new approach to covered call single-stock ETFs is aimed at investors who increasingly are looking for alternative income-generating products. Nvidia shares closed at $134.81 a share, down 0.5 per cent, in exchange trading on Wednesday, ahead of the AI chipmaker's earnings announcement.
Reuters
28-05-2025
- Business
- Reuters
REX Financial launches covered call Nvidia ETF hours before earnings release
May 28 (Reuters) - REX Financial launched a single-stock exchange-traded fund tied to Nvidia (NVDA.O), opens new tab, the powerhouse chipmaker that has dominated stock market returns over the last two years, on Wednesday morning, hours ahead of the release of Nvidia's earnings. The new fund, the REX NVDA Growth & Income ETF is a form of covered call ETF that uses option strategies to generate income while at the same time giving investors exposure to a portion of the upside in Nvidia's stock price, REX said. "We think it will allow people to have their cake and eat it, too," said Scott Acheychek, REX's chief operating officer. "They can stick with the stock that they follow and know and like, but with a risk profile that they're comfortable with and some weekly income" from the sale of options on Nvidia, he said. These single-stock option-based ETFs made their debut in late 2023, and now have about $10 billion in total assets. Overall interest in single-stock ETFs, a broader category that includes 1.5x or 2x leveraged products, continues to grow, said Bryan Armour, ETF analyst at Morningstar. "They're all aimed at self-directed individual investors," Armour said. While an ETF with this kind of structure likely would outperform the underlying stock if that stock is flat to lower, Armour said it makes more sense for investors either to buy individual stocks outright or to turn to options-based ETF strategies that are tied to broader portfolios. "A product like this is not trying to maximize either growth or income." Acheychek said this new approach to covered call single-stock ETFs is aimed at investors who increasingly are looking for alternative income-generating products. Nvidia shares closed at $134.81 a share, down 0.5%, in exchange trading on Wednesday, ahead of the AI chipmaker's earnings announcement.
Business Wire
28-05-2025
- Business
- Business Wire
REX Financial Unveils the REX NVDA Growth & Income ETF, the First Fund in New Single Stock Covered Call ETF Suite
MIAMI--(BUSINESS WIRE)--REX Financial ('REX'), a leader in innovative exchange-traded products, today announces the launch of a new single stock covered call suite with the REX NVDA Growth & Income ETF (CBOE: NVII). NVII seeks to provide balance between growth and income by offering between 1.05x and 1.50x targeted exposure to NVIDIA Corporation (NVDA) and aiming to provide weekly income by selling options on half of the targeted portfolio. "The launch of NVII marks the beginning of an exciting new series of single stock based income strategies at REX," said Scott Acheychek, COO of REX Financial. "With NVDA leading the AI and semiconductor revolution, NVII offers investors a unique way to generate weekly income while maintaining uncapped exposure on half of the portfolio to one of the most transformative growth stories in the market." The launch of NVII also marks the debut of REX's Growth & Income Covered Call ETF Suite, building on the success of REX's index based covered call strategies, including the REX FANG & Innovation Equity Premium Income ETF (NASDAQ: FEPI), the REX AI Equity Premium Income ETF (NASDAQ: AIPI), and the REX Crypto Equity Premium Income ETF (NASDAQ: CEPI). *The Fund targets 1.25x daily exposure to NVDA; however, in accordance with its investment objective, actual leverage may range between 1.05x and 1.50x. For more information on the REX NVDA Growth & Income ETF and the Growth & Income Covered Call ETF suite, please visit About REX REX is an innovative provider of exchange-traded products specializing in alternative-strategy ETFs and ETNs, with over $6 billion in assets under management. REX is renowned for its MicroSectors™ and T-REX product lines and recently introduced a series of option-based income strategies. For more information, visit Important Risks Investing in a REX ETF may be more volatile than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The REX ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leverage, and investment results and intend to actively monitor and manage their investment. An investment in the Fund entails risk. The Fund may not achieve its leveraged investment objective and there is a risk that you could lose all of your money invested in the Fund. In addition, the Fund presents risks not traditionally associated with other mutual funds and ETFs. It is important that investors closely review all of the risks listed below and understand them before making an investment in the Fund. Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the REX ETFs please call 1-844-802-4004 or visit our website at Read the prospectus and summary prospectus carefully before investing. REX Growth & Income ETFs Risks. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. Effects of Compounding and Market Volatility Risk. While the Fund's primary investment objective is to pay weekly distributions, the Fund's secondary investment objective is to seek daily investment results, before fees and expenses, between 105% and 150% the daily percentage change of the common stock of NVDA. Therefore, the performance of the Fund for periods longer than a single day will very likely differ in amount, and possibly even direction, from the targeted daily leveraged return of NVDA for the same period. Leverage Risk. The Fund seeks to achieve and maintain the exposure to the price of various securities by utilizing leverage. Therefore, the Fund is subject to leverage risk. Derivatives Risk. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or smaller gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective. Indirect Investment Risk. Nvidia Corporation. is not affiliated with the Trust, the Adviser, or any of their affiliates, and are not involved with this offering in any way. They have no obligation to consider the Funds when taking any corporate actions that might affect the value of the Funds. Non-Diversification Risk. The Fund is classified as 'non-diversified' under the Investment Company Act of 1940, as amended. This means it has the ability to invest a relatively high percentage of its assets in the securities of a small number of issuers or in financial instruments with a single counterparty or a few counterparties. 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. Underlying Security Investing Risk. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. The Funds' investment adviser will not attempt to position the portfolio to ensure that a Fund does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, if a Fund's underlying security moves more than 75%, as applicable, on a given trading day in a direction adverse to the Fund, the Fund's investors would lose all of their money.
Yahoo
03-03-2025
- Business
- Yahoo
Leveraged ETF Offers New Way to Play Trump's Media Group
Investors now have a new way to seek leveraged returns from President Donald Trump's social media company, Trump Media & Technology Group (DJT): the T-Rex 2X Long DJT Daily Target ETF (DJTU). The 2X leveraged exchange-traded fund is set to begin trading on March 4, according to a new issue notification from Cboe. The fund seeks leveraged results of two times the daily performance of DJT using derivatives and will carry an expense ratio of 1.05%, Rex Shares confirmed to Investors should keep in mind that leveraged ETFs are complex products that carry more risk than typical ETFs and are meant for active traders rather than long-term investors. 'Expanding the T-REX suite reflects investor demand for targeted, amplified exposure to some of the market's most closely watched stocks,' Scott Acheychek, chief operating officer of REX Financial, REX Shares' parent company, told 'DJTU provides traders with an exciting new tool to get exposure to the stock, allowing them to navigate volatility and capitalize on trading opportunities." Trump Media, the parent company of social media platform Truth Social, is a volatile stock that often trades on news related to the president instead of its fundamentals, including when it fell sharply just after Trump's inauguration. DJT is down roughly 32% year-to-date. The double-leveraged ETF is the latest in a series of recently launched investment products tied to the president. In January, Trump Media announced its foray into the ETF industry with plans to launch fund and crypto investments via a new financial technology brand, Just a few weeks later, the company applied for trademarks for three ETFs and three separately managed account products. While leveraged ETFs became more popular with retail traders and have the potential for gains that exceed the assets they track, they also come with added risk. A recent SEC filing points out that DJTU is designed to only be used by investors who intend to actively monitor and manage their portfolios. DJTU's objective is to magnify the daily performance of DJT—but that's not the case for trading periods longer or shorter than a day. For periods longer than a single day, the fund will lose money if DJT's performance is flat, the filing says, adding that it's possible the fund will lose money even if DJT's performance increases over a period longer than a single day. 'The more volatile the underlying stocks are, the harder it gets for these daily leveraged ETFs to keep up,' said Lan Anh Tran, passive strategies analyst at Morningstar. 'The leverage in these ETFs exacerbates the stocks' volatility, making it harder to recover from a large loss.' Tran added that operation-wise, these ETFs also need enough derivatives contracts on the underlying stocks to support their asset base: 'Since an ETF can't close, the capacity of the ETF depends on how liquid the derivatives market on the underlying stocks is. There have been instances where leveraged ETFs run into capacity problems as they grew too big for the derivatives market they were using.'Permalink | © Copyright 2025 All rights reserved
Zawya
29-01-2025
- Business
- Zawya
Investors bet on Nvidia share recovery with buying of leveraged ETFs
Short-term traders are proving eager to bet on a rapid recovery in Nvidia, pouring money into the three largest leveraged exchange-traded funds which are linked to gains in the share price of the AI chipmaking giant. Speculators and traders flocked to buy leveraged funds which aim to deliver double the daily return in Nvidia, asset managers said on Tuesday. The company's stock suffered the biggest one-day fall in market capitalization in history on Monday in response to news that China's DeepSeek launched a new artificial intelligence model. "We had about $1 billion of inflows into our long product," said Will Rhind, founder and CEO of GraniteShares, referring to the largest of these funds, the GraniteShares 2x Long NVDA Daily ETF. That wasn't enough to offset the impact of Nvidia's massive selloff on its assets, which shrank to about $4.3 billion from a high north of $6 billion last year. Each of the four Nvidia leveraged long ETFs ended Monday with losses of between 33% and 34%, according to LSEG data. The T-Rex 2x Long Nvidia Daily Target ETF saw inflows of $7.6 million into the $488.4 million fund on Monday, according to Scott Acheychek, the chief operating officer of REX Financial, one of the two firms that created the fund. Its much smaller bearish ETF, which delivers a gain equivalent to any loss in Nvidia's stock price, saw $3.1 million in outflows, the firm said. The Direxion Daily NVDA Bull 2x Shares ETF, which has about $435 million in assets, had $61.4 million in inflows, the firm said. Its corresponding inverse fund also had inflows, of about $3 million. The smallest of the four leveraged Nvidia ETFs, the $3 million Leverage Shares 2x Long NVDA Daily ETF, couldn't immediately provide details of flows into its fund on Monday in dollar terms. But Paul Marino, chief revenue officer of Themes ETFs, which oversees the U.S. business of Leverage Shares, said trading volume was six times average. "That shows you how many speculative traders are involved in Nvidia," Marino said. By the end of the day on Monday, he said flows had turned positive and remained so throughout the day on Tuesday. (Reporting by Suzanne McGee; Editing by Megan Davies and Lincoln Feast.)
