PEPS vs WTPI

PEPSBParametric Equity Plus ETF

WTPIBWisdomTree Equity Premium Income Fund

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.

WTPI Most S&P 500 income ETFs own the stocks and sell calls. WTPI flips the trade: Treasury collateral plus put options written on the index twice a month, each sized to target a 2.5% premium.

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.

WTPI The fund seeks capital appreciation and current income through a put-writing strategy tied to U.S. large-cap equity exposure. It is designed to provide enhanced income and potentially lower volatility than traditional equity exposure.

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.

• WTPI The put-writer in a room full of covered-call funds. Income comes from selling S&P 500 puts against Treasury collateral, targeting a 2.5% premium per option, not from dividends.sec.govwisdomtree.com
• Trading since 2016 as the WisdomTree PutWrite Strategy Fund before its 2025 rename, it predates most of the option-income boom and has run through several volatility spikes.nasdaq.com
• 0.44% a year undercuts the typical fund in its S&P 500 options-income group, and distributions land monthly.wisdomtree.com
• It hews closely to its index, and among dozens of S&P 500 option-income funds it sits in the upper half of the pack.

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.

• WTPI The math is asymmetric by design: gains are capped at the premiums collected, while a written put can lose value down toward its strike if the market drops.businesswire.comsec.gov
• No stocks under the hood, so no underlying dividends, and WisdomTree flags that the strategy may distribute more capital gains than a typical ETF.businesswire.comsec.gov
• Cheaper than the peer median, not the cheapest on the shelf: IVVW runs 0.25%, RSPA 0.32%, BALI and GPIX 0.35%.

Full PEPS profile⁠

Full WTPI profile⁠