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The Parametric Equity Premium Income ETF (PAPI) primarily allocates capital to a stock portfolio composed of robust, dividend-paying companies. These selections are made from the Russell 3000 Index using a unique, proprietary investment methodology that thoroughly assesses both the projected 12-month yield and the inherent risk level of each company. To achieve extensive diversification, the fund assigns an equal weighting to all market sectors. Following this, the top-ranked stocks within each individual sector are also given equal weights. For the purpose of generating additional income, PAPI systematically sells short-term (two-week), out-of-the-money call options. These options are issued in staggered tranches, with expiration dates occurring every three to four days. The underlying assets for these call options, which may include Flexible Exchange (FLEX) options, are either the SPDR S&P 500 ETF Trust (SPY) or the broader S&P 500 Index. While this strategy provides premium income to the fund, it also inherently restricts its potential for upward price appreciation. PAPI may also implement tax loss harvesting within its long equity holdings to maximize the recognition of investment losses. Investors should be aware that selling call options without owning the underlying asset, often termed "naked call writing," is considered a high-risk options strategy.
| Symbol | Name | Weight | Market Value |
|---|---|---|---|
| — | MSILF GOVERNMENT | 1.09% | $4.43M |
| GLW | CORNING INC COMMON STOCK | 0.99% | $4.02M |
| SNX | TD SYNNEX CORP COMMON | 0.80% | $3.23M |
| CSCO | CISCO SYSTEMS INC COMMON | 0.75% | $3.05M |
| RPRX | ROYALTY PHARMA PLC COMMON | 0.73% | $2.94M |
| TIGO | MILLICOM INTERNATIONAL | 0.72% | $2.92M |
| AVT | AVNET INC COMMON STOCK | 0.69% | $2.78M |
| POWI | POWER INTEGRATIONS INC | 0.68% | $2.74M |
| TGT | TARGET CORP COMMON STOCK | 0.68% | $2.74M |
| REYN | REYNOLDS CONSUMER | 0.68% | $2.73M |
| CMI | CUMMINS INC COMMON STOCK | 0.67% | $2.70M |
| TXN | TEXAS INSTRUMENTS INC | 0.67% | $2.70M |
| VLO | VALERO ENERGY CORP COMMON | 0.65% | $2.63M |
| BBY | BEST BUY CO INC COMMON | 0.65% | $2.62M |
| MSM | MSC INDUSTRIAL DIRECT CO | 0.64% | $2.58M |
| ABBV | ABBVIE INC COMMON STOCK | 0.63% | $2.57M |
| HRL | HORMEL FOODS CORP COMMON | 0.63% | $2.54M |
| IBM | INTERNATIONAL BUSINESS | 0.62% | $2.53M |
| WEN | WENDY'S CO/THE COMMON | 0.62% | $2.51M |
| INSW | INTERNATIONAL SEAWAYS INC | 0.62% | $2.50M |
| CBT | CABOT CORP COMMON STOCK | 0.62% | $2.49M |
| MAN | MANPOWERGROUP INC COMMON | 0.61% | $2.49M |
| ADI | ANALOG DEVICES INC COMMON | 0.61% | $2.46M |
| RHI | ROBERT HALF INC COMMON | 0.61% | $2.45M |
| DINO | HF SINCLAIR CORP COMMON | 0.60% | $2.44M |