XSPI: A 17% Yield With 150% Exposure Into The Fed

Impact · against what's priced in

XSPI is a neutral hold as its high yield is offset by the cost of leverage and risk. The fund's marginal outperformance of the S&P 500 despite 1.5x exposure suggests that the structural costs of the strategy are effectively capping its alpha.

XSPI−0.10

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In context

The ETF's 17% yield is primarily derived from option premiums and return of capital rather than organic dividends, while its 150% S&P 500 exposure has yielded only a 0.31% NAV advantage over the index.

Read from the article alone

• income investing
• XSPI
• etf
• fed
• high yield
• leverage
• options strategy
• sp500
• total return

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