PEPS vs XRMI

PEPSBParametric Equity Plus ETF

XRMIBGlobal X S&P 500 Risk Managed Income 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.

XRMI A covered-call fund with a seatbelt. XRMI owns the S&P 500, sells at-the-money calls for income, and spends part of that premium on puts 5% below the market, so the hedge is built in rather than bolted on. Pays monthly.

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.

XRMI XRMI seeks returns broadly corresponding to the price and yield performance of the Cboe S&P 500 Risk Managed Income Index. It owns S&P 500 stocks and uses a net-credit collar to generate income while mitigating significant market declines.

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.

• XRMI Net-credit collar: it sells at-the-money S&P 500 calls and buys 5% out-of-the-money puts, sized so the call premium collected exceeds the cost of the puts.globalxetfs.comglobalxetfs.com 2
• Calls are struck at the money, the fattest part of the premium curve, not safely out of the money. Distributions go out monthly.globalxetfs.com
• Holds the roughly 500 S&P 500 stocks outright and layers the options on top. No swap counterparty, no fund-of-funds wrapper.
• Running since 2021 and tied to a published Cboe index, so strikes and rolls follow a rulebook rather than a manager's read of the tape.

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.

• XRMI At-the-money calls trade away the upside above the strike each period, so equity gains in a strong rally are structurally limited.globalxetfs.com
• The put starts 5% below the market, so the first slice of a decline lands on the fund before the hedge engages.globalxetfs.com
• At 0.60% it sits at the median of a crowded S&P 500 options-income field where IVVW (0.25%) and GPIX (0.35%) run cheaper, and it trades thinly, so spreads matter.

Full PEPS profile⁠

Full XRMI profile⁠