PEPS vs SHDG

PEPSBParametric Equity Plus ETF

SHDGCSoundwatch Hedged Equity 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.

SHDG Most S&P 500 options funds are built to mail you a check. SHDG goes the other way: a systematic hedge wrapped around broad US equity, aimed at long-term growth with a downside cushion, at a fee below the group's norm.

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.

SHDG The Fund seeks long-term capital appreciation. It uses a systematic hedged-equity model with broad-based U.S. market exposure intended to reduce downside risk while retaining long-term equity gains.

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.

• SHDG Growth-first mandate. The fund targets long-term capital appreciation, using a systematic hedged-equity model to reduce downside risk while keeping long-term equity gains in play.
• 0.53% a year undercuts the typical fee among S&P 500 options-and-hedging funds.
• Familiar ground underneath the hedge: broad US market exposure referenced to the S&P 500, not an exotic basket.
• Trading since 2022, so there is a live operating record behind the model rather than a backtest.

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.

• SHDG Thinly traded. Limit orders matter here, and spreads can run wider than the household names in the category.
• Not an income machine. Distributions land annually or semiannually, not the monthly cadence much of this cohort is built around.
• A hedge has a price: it damps the drops and clips the sprints. Cheaper S&P 500 peers also exist, including IVVW at 0.25% and PBP at 0.29%.

Full PEPS profile⁠

Full SHDG profile⁠