PEPS vs XISE

PEPSBParametric Equity Plus ETF

XISECFT Vest U.S. Equity Buffer & Premium Income ETF - September

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.

XISE A buffered S&P 500 fund that swaps the rally for a paycheck: XISE targets a stated income rate for the year and cushions the first 10% of the underlying ETF's losses, with the terms reset every September.

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.

XISE The Fund seeks to provide approximately 6.88% annualized income before fees and expenses while buffering the first 10% of losses of the SPDR S&P 500 ETF Trust during the current target outcome period. It uses FLEX Options and short-term U.S. Treasury securities.

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.

• XISE The 10% buffer is contractual, not a manager's judgment call. FLEX options lock it in at the start of each one-year outcome period beginning in September.ftportfolios.com
• Income is the whole point: the fund publishes a target annualized income level for each outcome period and distributes monthly.ftportfolios.com
• September is just the start month. First Trust runs sibling buffer-and-income funds dated to other months, so the calendar entry point is a choice, not a constraint.businesswire.combusinesswire.com 2businesswire.com 3

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.

• XISE The 0.85% fee sits above the 0.60% median for S&P 500 options-income funds, and well above cheaper peers such as IVVW (0.25%) and GPIX (0.35%).
• One of the smaller, thinly traded names in its group, so bid-ask spreads can run wider than at the category's heavyweights.
• Upside is surrendered by design, and the stated buffer and income terms apply to a full outcome period. Buying mid-period means different math than the headline numbers.businesswire.comftportfolios.com

Full PEPS profile⁠

Full XISE profile⁠