Shelton Capital Management Launches Equity Premium Income ETF (SEPI)
Shelton Capital Management has launched its new Equity Premium Income ETF (NYSE:SEPI), an actively managed ETF focused on generating cash flow through dividends and option premiums. The fund, managed by a firm with $6 billion in AUM, employs a covered call strategy on individual stocks rather than using synthetic notes or index options.
Led by Senior Portfolio Manager Barry Martin, CFA, SEPI builds on Shelton's nearly two decades of expertise in covered call strategies and follows similar principles to their 5-star rated EQTIX mutual fund. The ETF aims to provide enhanced distribution rates through writing covered calls and selling cash secured puts on large-cap stocks, offering investors an actively managed solution with intraday trading capabilities.
Shelton Capital Management ha lanciato il suo nuovo Equity Premium Income ETF (NYSE:SEPI), un ETF a gestione attiva focalizzato sulla generazione di flussi di cassa tramite dividendi e premi derivanti da opzioni. Il fondo, gestito da una società con $6 billion in AUM, utilizza una strategia di covered call su singole azioni anziché ricorrere a note sintetiche o opzioni su indici.
Guidato dal Senior Portfolio Manager Barry Martin, CFA, SEPI si basa sulle quasi due decadi di esperienza di Shelton nelle strategie di covered call e segue principi analoghi al loro fondo comune EQTIX, valutato 5 stelle. L'ETF mira a offrire tassi di distribuzione potenziati tramite la scrittura di covered call e la vendita di put garantite in contanti su titoli large-cap, proponendosi come una soluzione a gestione attiva con la possibilità di negoziazione intraday.
Shelton Capital Management ha lanzado su nuevo Equity Premium Income ETF (NYSE:SEPI), un ETF gestionado activamente centrado en generar flujo de caja mediante dividendos y primas de opciones. El fondo, gestionado por una firma con $6 billion in AUM, aplica una estrategia de covered call sobre acciones individuales en lugar de utilizar notas sintéticas u opciones sobre índices.
Liderado por el Senior Portfolio Manager Barry Martin, CFA, SEPI se basa en las casi dos décadas de experiencia de Shelton en estrategias de covered call y sigue principios similares a los de su fondo mutuo EQTIX, calificado con 5 estrellas. El ETF pretende ofrecer tasas de distribución mejoradas mediante la escritura de covered calls y la venta de puts con respaldo en efectivo sobre acciones large-cap, ofreciendo a los inversores una solución gestionada activamente con capacidad de negociación intradía.
Shelton Capital Management가 새로운 Equity Premium Income ETF (NYSE:SEPI)를 출시했습니다. 이 액티브 관리 ETF는 배당금과 옵션 프리미엄을 통해 현금 흐름을 창출하는 데 중점을 둡니다. $6 billion in AUM을 보유한 운용사가 관리하는 이 펀드는 합성 채권이나 지수 옵션을 사용하지 않고 개별 주식에 대한 커버드 콜 전략을 활용합니다.
수석 포트폴리오 매니저 Barry Martin, CFA가 이끄는 SEPI는 Shelton의 커버드 콜 전략에 관한 거의 20년의 전문성을 기반으로 하며, 5성 등급을 받은 EQTIX 뮤추얼 펀드와 유사한 원칙을 따릅니다. 이 ETF는 대형주에 대해 커버드 콜을 쓰고 현금 담보 풋을 매도함으로써 향상된 분배율을 제공하는 것을 목표로 하며, 투자자에게는 일중 거래(인트라데이) 기능을 갖춘 액티브 관리 솔루션을 제공합니다.
Shelton Capital Management a lancé son nouveau Equity Premium Income ETF (NYSE:SEPI), un ETF à gestion active axé sur la génération de flux de trésorerie via dividendes et primes d'options. Le fonds, géré par une société disposant de $6 billion in AUM, emploie une stratégie de covered call sur des actions individuelles plutôt que d'utiliser des titres synthétiques ou des options d'indice.
Dirigé par le Senior Portfolio Manager Barry Martin, CFA, SEPI s'appuie sur les près de deux décennies d'expertise de Shelton en stratégies de covered call et suit des principes similaires à ceux de leur fonds commun EQTIX, noté 5 étoiles. L'ETF vise à fournir des taux de distribution améliorés en écrivant des covered calls et en vendant des puts garantis en numéraire sur des actions large-cap, offrant aux investisseurs une solution gérée activement avec des capacités de négociation intrajournalière.
Shelton Capital Management hat seinen neuen Equity Premium Income ETF (NYSE:SEPI) aufgelegt, einen aktiv gemanagten ETF, der darauf abzielt, Cashflow durch Dividenden und Optionsprämien zu generieren. Der von einer Firma mit $6 billion in AUM verwaltete Fonds setzt auf eine Covered-Call-Strategie bei Einzelaktien statt auf synthetische Notes oder Indexoptionen.
Unter Leitung des Senior Portfolio Managers Barry Martin, CFA, baut SEPI auf Sheltons fast zwei Jahrzehnten Erfahrung mit Covered-Call-Strategien auf und folgt ähnlichen Grundsätzen wie ihr 5-Sterne bewerteter Mutual Fund EQTIX. Der ETF zielt darauf ab, durch das Schreiben von Covered Calls und den Verkauf von cash-gesicherten Puts auf Large-Cap-Aktien erhöhte Ausschüttungsraten zu bieten und stellt Anlegern eine aktiv verwaltete Lösung mit Intraday-Handelsmöglichkeiten bereit.
- Leverages Shelton's proven track record with their 5-star rated flagship fund EQTIX
- Offers enhanced cash flow through dividends and option premiums
- Provides active management with flexibility to adjust to market conditions
- Enters growing derivative income category that expanded from $1B to $100B in assets
- Enters a crowded market with over 100 derivative-based ETFs recently launched
- Performance may differ from the successful mutual fund strategy due to structural differences
Insights
Shelton Capital launches SEPI, an actively managed ETF generating income through covered calls on individual stocks, leveraging their 5-star rated strategy experience.
Shelton Capital Management has entered the booming derivative income ETF space with their new Shelton Equity Premium Income ETF (SEPI). This actively managed ETF aims to generate enhanced cash flow through a combination of dividends and option premiums, specifically by writing covered calls on individual large-cap stocks rather than using index options or synthetic notes.
The fund leverages the same investment approach as Shelton's existing
The key value proposition centers on three elements: enhanced cash flow generation through option premiums, active management allowing for tactical adjustments to market conditions, and professional options management leveraging Shelton's nearly 20 years of covered call strategy expertise.
For investors, SEPI offers a potentially attractive vehicle for income generation with the convenience of ETF benefits including intraday trading, low investment minimums, and transparent pricing. The strategy aims to balance income generation with potential for capital appreciation through its stock selection process, though as with any derivative strategy, there's an inherent tradeoff between immediate income and upside participation.
By launching SEPI, Shelton joins the rapidly expanding derivative income category, positioning themselves to capitalize on growing investor demand for income solutions in today's market environment.
Active ETF Seeking to Deliver Cash Flow and Total Return Through Dividends and Option Premiums
"We believe SEPI stands apart by selling calls on individual stocks rather than relying on synthetic notes or index option overlays," said Shelton Capital, CEO, Steve Rogers. "The fund draws from the same research and management principles that underpin Shelton's established Overall Morningstar 5-star Flagship Mutual Fund, EQTIX1, and Equity Income Separately Managed Account (SMA)."
The ETF will leverage Shelton's nearly two decades of expertise in covered call strategies, bringing a powerful investment to the marketplace for income-oriented investors seeking an actively managed solution in an efficient ETF wrapper. SEPI aims to deliver cash flow based on Shelton Capital Management's experience with similar strategies, 2 combining dividends with option premiums generated from writing call options on individual large-cap stocks.
Product-Focused Features:
- Cash Flow Generation: Seeks to deliver capital appreciation and an enhanced cash flow through writing covered calls and/or selling cash secured puts on portfolio positions, thereby enhancing the distribution rates to shareholders.
- Active ETF Management: Risk-aware equity selection with upside opportunity. Covered calls on individual stocks, not indexes or synthetic notes, offer sector diversification & strong risk/reward profiles.
- Professional Options Management: Leverage Shelton's nearly two decades of expertise in covered call strategies in an actively managed solution in an efficient ETF wrapper.
More than 100 derivative-based ETFs have entered the market in recent years—pushing assets in Morningstar's Derivative Income category from
"As we continue to pursue innovative vehicle solutions to meet our clients' needs, we have designed SEPI for investors who want more than a static income fund," said SEPI's Senior Portfolio Manager, Barry Martin, CFA. "By actively managing covered calls on individual equities, we can target meaningful cash flow while maintaining the ability to dynamically adjust to evolving market conditions. This allows us to offer clients a differentiated, outcome-oriented strategy with the ease of an ETF—offering intraday trading, low minimums, and real-time pricing."
1 EQTIX received an Overall Morningstar Rating of 5 stars among 74 Derivative Income funds, based on risk-adjusted returns, as of 6/30/2025. The fund's Morningstar three-,five-, ten-year ratings respectively, 4 stars, 4 stars, 5 stars among 74, 65, 33 funds. The ETF is not a mutual fund and may not achieve the same results.
About Shelton Capital Management
Shelton Capital Management (SCM) is a boutique investment firm that helps investors meet financial goals through tailored investment solutions and human-centric customer service. Founded in 1985, the company provides mutual funds, ETFs, and separately managed accounts to the clients of wealth managers, retirement plans, and individual investors. As of 8/31/25, the firm manages over
Important Information
SCM Trust has filed and declared effective a registration statement with the
A prospectus for the Shelton Equity Premium Income ETF may be obtained by contacting: Shelton Funds
1125 17th Street, Ste. 2550,
Tel: 800-955-9988
Email: info@sheltoncap.com
Website: sheltoncap.com
The Shelton Equity Premium Income ETF is distributed by Paralel Distributors LLC, Member Firm. Shelton Capital Management is not affiliated with Paralel Distributors LLC, Member FINRA.
SEPI Fund Disclosures
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (800) 955-9988 or visit www.sheltoncap.com/sepi. Read the prospectus carefully before investing.
Exchange Traded Funds ("ETFs") are subject to the possible loss of principal. The value of the ETFs will fluctuate with the value of the underlying securities. ETF Shares may trade at prices above or below NAV. Liquidity isn't guaranteed, and trading may be halted due to market-wide or security-specific events, delisting, or exchange actions.
The Fund is new with a limited operating history.
The value of the Fund's equity holdings may decline, sometimes unpredictably, due to broader economic, political, or market conditions not specific to individual companies. Because the Fund is primarily invested in
Investments in derivatives may be riskier than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment. Positions in equity options can reduce equity market risk, but can limit the opportunity to profit from an increase in the market value of stocks in exchange for upfront cash as the time of selling the call option. Unusual market conditions or the lack of a ready market for any particular option at a specific time may reduce the effectiveness of option strategies and could result in losses.
© 2025 Morningstar, Inc. All rights reserved. The information contained herein relating to Morningstar: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top
2Cash flow is the money generated or available to distribute to shareholders. Distributions may include option premium, ordinary dividends, interest income, capital gains, or return of capital. Distributions may coincide with a decline in NAV. Distribution levels may vary and no minimum distribution amount can be guaranteed.
3VettFi: The Hunt for Yield: Enhanced Income ETFs Thrive in a Low-Upside Market
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Media Contact:
Christina Robben
(720)-871-7229
pr@sheltoncap.com
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SOURCE Shelton Capital Management
FAQ
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