PEPS vs SDTY

PEPSBParametric Equity Plus ETF

SDTYDYieldMax S&P 500 0DTE Covered Call Strategy ETF

In short

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.

SDTY YieldMax's option-income playbook aimed at the index: SDTY builds S&P 500 exposure with options and sells calls that expire the same day, every day. Income gets harvested one session at a time, and upside gets clipped the same way.

Stated mandate

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.

SDTY SDTY seeks current income while providing exposure to the S&P 500 Index’s price return.

Why people hold it

• 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.

• SDTY The 0DTE twist: calls that expire the same session, written daily, so the premium clock resets every trading day instead of once a month.
• Pure label-matching: S&P 500 price exposure built synthetically, income generated by writing calls against it. What the name says is what the fund does.
• It was YieldMax's first move from single-stock option income into a broad index, live since 2025.stockanalysis.com

Worth knowing

• 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.

• SDTY At 1.08% a year, it costs well above the roughly 0.60% median for S&P 500 option-income funds, and multiples of IVVW (0.25%) or GPIX (0.35%).
• Selling calls every session hands away part of each strong up day. The income comes out of the fund's upside, not on top of it.
• Small and lightly traded next to the giants writing calls on the same index. Limit orders matter more here than with a heavily traded peer.

Full PEPS profile⁠

Full SDTY profile⁠