NBOS vs PEPS

NBOSBNeuberger Berman Option Strategy ETF

PEPSBParametric Equity Plus ETF

In short

NBOS Most options-income ETFs sell calls on stocks they already own. NBOS flips the trade: it sells collateralized puts on the S&P 500 and parks the collateral in bonds, so premium, not dividends, does the work.

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

NBOS The Fund seeks long-term capital growth and income mainly by selling collateralized puts on U.S. indices, including the S&P 500 and related S&P 500 suite indices, while investing collateral in fixed-income instruments intended to moderate volatility.

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

• NBOS The mandate is a put-write, not a covered call: sell collateralized puts on the S&P 500 and related indices, hold the collateral in fixed income meant to moderate volatility.
• 0.59% a year, below the 0.75% median for its options-income peer group and cheaper than every fund citing the same index (ACYS, SIXH, OVL, MRSK).
• Pays monthly, and runs a compact book of roughly 30 positions rather than a sprawling equity sleeve with options bolted on.
• Sticks closely to the strategy its prospectus describes, and stands among the stronger implementations in a crowded options-income field.

• 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

• NBOS Selling puts means your equity upside is the premium collected, while index downside still flows through. Expect it to trail the S&P 500 in strong rallies.
• Launched in 2024, so the live record is short and spans a narrow slice of market conditions.
• Moderately traded rather than a category giant, so limit orders are the sane way in and out.

• 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 NBOS profile⁠

Full PEPS profile⁠