PEPS vs SPYC

PEPSBParametric Equity Plus ETF

SPYCCSimplify US Equity PLUS Convexity 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.

SPYC Most funds in its peer group sell S&P 500 calls to harvest premium. SPYC does the opposite: a plain index core plus a small options budget built to pay off when the market makes an extreme move, up or down.

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.

SPYC The fund seeks capital appreciation through U.S. large-cap exposure and a systematic options overlay designed to boost performance during extreme market moves in either direction.

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.

• SPYC The overlay points both ways. A modest options budget aims to boost results in big moves in either direction, not just cushion a selloff.simplify.us
• The equity sleeve is boring on purpose: an S&P 500 index ETF (IVV) does the heavy lifting, with the options bolted on top.simplify.us
• 0.53% a year, below the 0.60% median for S&P 500 option-strategy funds, for a strategy most investors cannot rebuild in a brokerage account.
• Trading since 2020, so the design has a multi-year live record instead of 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.

• SPYC Buying options costs money every cycle. In markets that grind sideways, that budget is a drag on the index core.simplify.us
• Thinly traded next to the giants of its category. Use limit orders and check the spread before you hit the button.
• Not an income vehicle: it buys options rather than selling them, and pays quarterly. Premium-income peers like IVVW (0.25%) and GPIX (0.35%) charge less.

Full PEPS profile⁠

Full SPYC profile⁠