Rex Tech Innovation Income & Growth UCITS ETF (Dist)

Issuer: HANetf

Asset Class: Alternative

TER: 65bps

Trading Currency: USD

Pays Income: False

Listing Date: 02 Jul 2025

Ticker: FEGI

ISIN: IE000OBK3UE0

This actively managed fund is designed to provide investors with a combination of monthly income and growth potential from the technology sector. It achieves this by holding a concentrated portfolio of leading global technology companies while simultaneously employing a covered call option-writing strategy. The core of the portfolio consists of approximately 15 large-cap stocks recognized for their innovation and market leadership. The fund aims to capture the long-term capital appreciation associated with these dynamic firms.

The income component is generated by systematically selling call options against the stocks held in the portfolio. The premiums collected from selling these options provide a regular income stream, which is distributed to shareholders on a monthly basis. This covered call strategy can also offer a degree of capital protection in flat or moderately declining markets, as the option premium income can help offset some of the losses in the underlying stocks. However, this approach also places a cap on the potential upside; if a stock's price rises substantially above the option's strike price, the fund will not participate in those further gains.

This product may be suitable for investors who seek enhanced yield and regular income distributions while maintaining exposure to the growth-oriented technology sector. It can serve as a core holding for those looking for a balanced approach that seeks to generate returns in various market conditions. The active management allows the portfolio managers to dynamically select the underlying securities and adjust the option strategy in response to changing market volatility and outlooks, aiming to optimize the balance between income generation and growth participation.