FYEE vs PEPS

FYEEAFidelity Yield Enhanced Equity ETF

PEPSBParametric Equity Plus ETF

In short

FYEE Fidelity's entry in the S&P 500 covered-call scrum: own the large-cap equity book, sell calls against it for income, and charge roughly half the fee of the typical fund in this crowd.

PEPS Active management at index-fund pricing. PEPS holds a U.S. large-cap base, then writes S&P 500 calls against offsetting long exposure: a beta-neutral overlay built to add return rather than swap upside for income.

Stated mandate

FYEE The fund seeks equity-market exposure and capital appreciation while using a disciplined covered-call program to generate income.

PEPS The Fund seeks long-term capital appreciation. It is actively managed, using a U.S. large-cap equity base and beta-neutral call overwriting on the S&P 500 with offsetting long exposure to seek incremental total return.

Why people hold it

• FYEE Fee of 0.31% against a cohort median of 0.60% for S&P 500 options-income funds. In a strategy where premium income is the whole point, less leakage to costs matters.
• The mandate is equity first: capital appreciation and market exposure, with a disciplined covered-call program layered on for income rather than income chased at any cost.fidelity.com
• Does exactly what its documents say it does, and sits in the top quartile of a crowded S&P 500 income group on our review.
• Cheaper than the marquee names it competes with, including GPIX (0.35%), BALI (0.35%) and SPYI (0.68%).

• PEPS 0.10% is index-fund pricing for an actively managed strategy. Even the cheap, well-regarded active peers cost more: DFAU at 0.12%, FELC at 0.18%.
• Not a covered-call fund. The sold S&P 500 calls are paired with offsetting long exposure, so the overlay seeks incremental total return instead of capping upside.
• Ordinary 1940 Act ETF wrapper, U.S. large-cap equity, distributions paid quarterly. The complexity lives in the overlay, not the tax paperwork.
• Cost is the standout: the typical active U.S. equity ETF in this group charges several times what PEPS does, and fee drag is the one input you know in advance.

Worth knowing

• FYEE Covered calls swap upside for premium. When the S&P 500 runs hard, the calls written against the portfolio limit how much of that climb the fund keeps.fidelity.com
• Income lands quarterly, not monthly, so the cash arrives in four larger drops rather than a steady drip.
• Launched in 2024 and moderately traded, so the track record is short and spreads can run wider than the category's largest funds.

• PEPS Launched in November 2024. The overlay has not yet run through a full market cycle, so there is limited history to judge it on.
• A small, thinly traded fund. Bid-ask spreads can run wider than a mega-cap index ETF's, which shows up most on larger orders.
• The options leg adds moving parts: short index calls lose value in a sharp rally, and the offsetting long exposure is what has to make that back.

Full FYEE profile⁠

Full PEPS profile⁠