TappAlpha’s Flagship ETF, TSPY, Surpasses $100 Million in AUM

Rhea-AI Summary

TappAlpha's flagship ETF (NASDAQ:TSPY) has achieved a significant milestone by surpassing $100 million in assets under management (AUM). Launched in August 2024, TSPY combines S&P 500 exposure with an actively managed daily covered call overlay strategy, aiming to provide consistent income while maintaining market growth potential.

The ETF offers monthly distributions and charges a 0.68% management fee. TappAlpha has also launched TDAQ, a similar fund focused on the NASDAQ 100 index. Both funds are available on major retail brokerage platforms and implement a zero days to expiration (0DTE) options strategy to generate daily income.

Positive

• Reached significant milestone of $100M AUM within 14 months of launch
• Successfully implemented innovative daily income strategy combining S&P 500 exposure with covered calls
• Demonstrated market resilience and consistent income generation since inception
• Available across major retail brokerage platforms for wide accessibility

Negative

• Relatively high management fee of 0.68% compared to traditional index ETFs
• Complex strategy involving daily options trading may carry additional risks

Insights

ETF Strategy Analyst

TappAlpha's TSPY hits $100M AUM in just over a year, validating its innovative daily options income approach while maintaining market exposure.

TappAlpha's flagship ETF hitting the $100 million AUM mark just 14 months after launch demonstrates significant investor validation for their differentiated approach to income generation. This growth trajectory is particularly notable in today's crowded ETF landscape where new products often struggle to gain traction.

The fund's strategy represents an interesting evolution in the income ETF space by combining two elements: core S&P 500 exposure with an actively managed daily covered call overlay using 0DTE (zero days to expiration) options. This structure provides several potential advantages over traditional covered call ETFs:

First, the daily (0DTE) options approach allows for more tactical management compared to monthly expiration cycles that many competing funds utilize. This can potentially optimize income generation across different market conditions and volatility regimes.

Second, the structure appears designed to balance the classic covered call tradeoff between income and growth participation. By actively managing the overlay, the fund can potentially retain more upside exposure during strong markets while still generating income.

The 0.68% expense ratio positions TSPY in the mid-range for actively managed overlay strategies. While higher than passive index funds, it's reasonable given the active options management component requiring daily tactical decisions.

The firm's expansion to a NASDAQ-focused product (TDAQ) using the same methodology indicates confidence in their approach and suggests market receptivity to their strategy. This milestone validates their product-market fit and creates a foundation for potential additional offerings leveraging similar methodologies across different underlying indices or asset classes.

Milestone Highlights Continued Advisor and Investor Demand for Daily Income Strategy

SEATTLE, Wash., Oct. 02, 2025 (GLOBE NEWSWIRE) -- TappAlpha, a fintech-powered ETF issuer focused on making advanced investing strategies accessible, today announced that its flagship fund, the TappAlpha SPY Growth & Daily Income ETF (Nasdaq: TSPY), has surpassed $100 million in assets under management (AUM).

Launched in August 2024, TSPY has gained rapid traction with both advisors and retail investors by offering a differentiated approach to income generation—blending core S&P 500 exposure with an actively managed daily (0DTE - zero days to expiration) covered call overlay. This structure seeks to deliver consistent, tax-efficient income while preserving participation in broad market growth.

“This milestone reflects the trust investors and advisors have placed in us — and we’re deeply grateful for it,” said Si Katara, CEO and Founder of TappAlpha. “It’s a sign that more people are finding tools that align with how they truly want to invest: staying in the market, earning meaningful income, and building wealth with intention. That’s why we built TSPY — to support people making smart, lasting decisions with their hard-earned resources, and to give advisors powerful ways to help them do it.”

The fund seeks to distribute income monthly and is designed for forward-thinking investors and advisors seeking to tap the potential of their S&P 500 position. Since inception, TSPY has demonstrated resilience in volatile markets and has become a go-to solution for investors seeking consistent income from their core equity exposure.

TSPY is part of TappAlpha’s broader mission to make powerful investing strategies simple, transparent, and accessible — so more people can build wealth with confidence and purpose. The firm recently launched TDAQ, a sister fund to TSPY that applies the same daily income overlay to the NASDAQ 100, offering exposure to technology and innovation-focused names. TSPY and TDAQ are just the beginning — setting the stage for a growing lineup of strategies built to serve real investor needs.

TSPY is offered at a 0.68% management fee and is available across major retail brokerage platforms.

For more information on TappAlpha ETFs, visit TappAlphaFunds.com.

About TappAlpha

TappAlpha is a fintech-powered ETF issuer on a mission to make powerful investment strategies accessible to all investors. By combining innovation with simplicity, we build solutions designed to unlock income potential and strengthen long-term portfolios. Founded in 2023, TappAlpha is committed to making investing simple, actionable, and transparent — always putting investors first.

Disclosures

Investors should carefully consider the investment objectives, risks, charges and expenses of the ETFs identified on this site. This and other important information about the Fund are contained in the prospectus, which can be obtained by visiting tappalphafunds.com or by calling (844) 403-2888. The prospectus should be read carefully before investing.

Investing in securities involves risk, including the potential loss of principal. You could lose money by investing in the Fund and the Fund may not achieve its investment objectives.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

The Fund invests in options contracts that are based on the value of the Index, including SPX and XSP options for TSPY and XND and NQX options for TDAQ. This subjects the Fund to certain of the same risks as if it owned shares of companies that comprised the Index, even though it does not own shares of companies in the Index. The Fund will have exposure to declines in the Index. The Fund is subject to potential losses if the Index loses value, which may not be offset by income received by the Fund. To the extent that the Fund invests in other ETFs or investment companies, the value of an investment in the Fund is based on the performance of the underlying funds in which the Fund invests and the allocation of its assets among those ETFs or investment companies. The Fund may incur high portfolio turnover to manage the Fund’s investment exposure. The Fund is classified as “non-diversified” under the 1940 Act.

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. This impact may be positive or negative, depending on the direction of market movement during the period affected.

Due to the short time until their expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with more time until expiration. Because of this, the timing of trades utilizing 0DTE options becomes more critical.

Even a slight delay in the execution of 0DTE trades can significantly impact the outcome of the trade. 0DTE options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at desired prices. The bid-ask spreads on 0DTE options can be wider than with traditional options, increasing the Fund's transaction costs and negatively affecting its returns. These risks may negatively impact the performance of the fund.

Distributor: Foreside Fund Services, LLC

For Media Inquires:
Contact TappAlpha
info@tappalpha.com  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/941c6560-ab90-43a0-abbd-f75523641c83

FAQ

What is the TappAlpha SPY Growth & Daily Income ETF (TSPY) and how does it work?

TSPY is an ETF that combines S&P 500 exposure with a daily covered call overlay strategy. It aims to generate consistent income while maintaining market growth potential through 0DTE (zero days to expiration) options.

How much does the TSPY ETF charge in management fees?

TSPY charges a management fee of 0.68%.

When was TSPY launched and how much AUM has it accumulated?

TSPY was launched in August 2024 and has surpassed $100 million in assets under management as of October 2025.

How often does TSPY distribute income to investors?

TSPY aims to distribute income to investors on a monthly basis.

What other ETFs does TappAlpha offer besides TSPY?

TappAlpha also offers TDAQ, a similar fund that applies the daily income overlay strategy to the NASDAQ 100 index.