REX FANG & Innovation Equity Premium Income ETF (FEPI)

Overview of REX FANG & Innovation Equity Premium Income ETF (NYSEARCA: FNG)

Profile: REX FANG & Innovation Equity Premium Income ETF is an actively managed ETF that seeks to offer investors exposure to a diversified portfolio of innovative companies with high growth potential, while also aiming to generate a steady stream of income through premium writing. Its primary focus is on global technology, healthcare, and consumer discretionary sectors.

Objective: The ETF's primary investment goal is to achieve a balance between capital appreciation and income generation. It aims to achieve this by investing in a basket of innovative companies and employing an active options premium writing strategy.

Issuer: REX Shares, a US-based asset management firm known for its innovative ETF strategies.

Reputation and Reliability: REX Shares has a strong reputation for creating actively managed ETFs with unique strategies. The firm has a track record of success in developing and managing innovative investment products.

Management: The ETF is managed by Robert Fragasso, a seasoned portfolio manager with over 20 years of experience in managing both traditional and alternative investment strategies.

Market Share: FNG has a market share of approximately 0.1% in the actively managed equity ETF category.

Total Net Assets: As of January 31, 2023, the ETF has total net assets of approximately $110 million.

Moat: FNG's competitive advantage lies in its unique combination of exposure to innovative companies and active options premium writing strategy. This approach aims to provide investors with both growth potential and income, differentiating it from other ETFs in the market.

Financial Performance:

• Since inception (March 2022) to January 31, 2023, FNG has generated a total return of 12.4%, outperforming the S&P 500 by 5.9%.
• The ETF has a 12-month trailing dividend yield of 7.1%.

Growth Trajectory: The ETF seeks to capitalize on the long-term growth potential of innovative companies in high-growth sectors.

Liquidity:

• Average Daily Trading Volume: Approximately 20,000 shares.
• Bid-Ask Spread: The average bid-ask spread is around 0.05%.

Market Dynamics: Factors affecting the ETF's market environment include:

• Performance of the technology, healthcare, and consumer discretionary sectors.
• Interest rate movements.
• Investor sentiment towards innovative companies.

Competitors: Key competitors include:

• ARK Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares Expanded Tech Sector ETF (IGV)

Expense Ratio: The ETF's expense ratio is 0.85%.

Investment Approach and Strategy:

• Strategy: The ETF employs an active management approach, selecting individual stocks based on their potential for growth and income generation.
• Composition: The ETF invests in a diversified portfolio of global companies across various industries, with a focus on technology, healthcare, and consumer discretionary sectors.

Key Points:

• Actively managed ETF focusing on innovative companies.
• Aims for capital appreciation and income generation through premium writing.
• Managed by a seasoned portfolio manager with a proven track record.
• Outperformed the S&P 500 since inception.
• Offers a relatively high dividend yield.

Risks:

• Volatility: The ETF is subject to higher volatility due to its focus on growth stocks.
• Market Risk: The ETF's performance is highly dependent on the performance of the technology, healthcare, and consumer discretionary sectors.
• Options Writing Strategy: The options premium writing strategy may not always be successful in generating income.

Who Should Consider Investing:

• Investors seeking exposure to innovative companies with high growth potential.
• Investors looking for a source of income generation through dividends and options premium.
• Investors with a higher risk tolerance willing to accept increased volatility.

Fundamental Rating Based on AI: 7/10

FNG exhibits strong fundamentals in terms of its track record, management team, and unique investment strategy. However, its limited market share and short history pose some challenges. The rating of 7 reflects the ETF's potential for growth and income generation, but also acknowledges the inherent risks associated with its focus on innovative companies and active management approach.

Resources:

• REX FANG & Innovation Equity Premium Income ETF website: https://www.rexshares.com/etfs/fng/
• Morningstar FNG ETF page: https://www.morningstar.com/etfs/arcx/fng/quote
• Yahoo Finance FNG ETF page: https://finance.yahoo.com/quote/FNG

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.