Miami-based ETF sponsor Defiance ETFs LLC launched the Defiance Nasdaq-100 Enhanced Option Income ETF on Thursday, the first ETF to use daily options income generation, the ETF sponsor said in a press release.
The ETF seeks to tap into the dual popularity of short-dated options contracts and the heightened interest in ETFs that seek to generate income through a combination of selling options and investing in U.S. large cap stocks.
Investors have also flocked to ETFs that look to generate income and reduce portfolio volatility by selling options against stocks.
One such ETF - the JPMorgan Equity Premium Income ETF (JEPI.P) - has grown its assets to about $29.5 billion from about $12.4 billion a year ago.
Defiance ETFs is set to launch two other ETFs - the Defiance S&P 500 Enhanced Options Income ETF and Defiance R2000 Enhanced Options Income ETF , which will employ a similar strategy with exposure to the S&P 500 (.SPX) and the Russell 2000 Indexes (.RUT), respectively.
Persons:
Sylvia Jablonski, QQQY, Lois Gregson, Gregson, Russell, Seth Golden, Golden, Saqib Iqbal Ahmed, Richard Chang, Ira Iosebashvili, Daniel Wallis
Organizations:
Defiance, Investors, JPMorgan, FactSet Research Systems, Finom, Thomson
Locations:
Miami