XFUNDS (VOOY) launched the XFUNDS Large Cap Income ETF, an actively managed fund pairing U.S. large-cap equity exposure with options-based income strategies.
VOOY primarily holds ETFs tracking U.S. large-cap indices, generally featuring companies with market capitalizations above $10 billion or viewed as industry leaders with dividends and relatively lower volatility. To seek additional income, the fund uses call and put spreads on individual securities or ETFs and may also employ single-leg options, short calls and cash-secured puts. It can hold U.S. Treasury bills, money market funds and cash equivalents for liquidity and collateral. VOOY targets current weekly income but has no assurance of regular distributions and carries risks including derivatives risk, counterparty risk, NAV erosion from distributions, equity market risk, high portfolio turnover, non-diversification and new fund risk.