HEMI vs PEPS

HEMIBHartford Equity Premium Income ETF

PEPSBParametric Equity Plus ETF

In short

HEMI Hartford's late entry into the crowded S&P 500 premium-income field, with a twist: an actively picked, value-quality-momentum stock book sits under the options overlay, aimed at tax-efficient income while leaving room to appreciate.

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

HEMI Seeks tax-efficient current income while retaining potential for capital appreciation.

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

• HEMI Not a plain index buy-write. An active portfolio screened on value, quality and momentum sits under the options sleeve, with the S&P 500 as the reference point.
• The mandate is written for tax-efficient current income while retaining potential for capital appreciation, not income at any cost.
• At 0.58%, the fee lands just under the median for S&P 500 options-income ETFs, a group where plenty of funds charge north of 0.90%.

• 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

• HEMI It launched in December 2025, so there is no multi-year record showing how the strategy handles a full market cycle.
• A small asset base and light trading make spreads wider than in the category's giants. Limit orders matter more here.
• Cheaper rivals crowd the same trade: IVVW at 0.25%, RSPA at 0.32%, GPIX and BALI at 0.35%.

• 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 HEMI profile⁠

Full PEPS profile⁠