Recently, options-based ETFs have received a lot of attention here in the forum. The best-known providers and funds include:

Global X: $QYLE (-0,71%), $XYLP (+0,04%)

JPMorgan: $JEGP (-0,71%), $JEPQ (+0,88%)

iShares: $WINC (-0,02%) , $INCU (+0,5%)

Now another provider is entering the stage: IncomeShares from the UK.

The first products, $QQQY and $SPYY are now tradable at Scalable:

IncomeShares Nasdaq 100 Options (0DTE) ETP

IncomeShares S&P500 Options (0DTE) ETP

They promise massive payout ratios of 65% and 41% respectively. What's the catch?

For me, many questions remain unanswered, especially about the underlying option strategies, such as the use of ODTE (Options with Daily Expiry).

Presumably these are adaptations of income investing, which is already very popular in the USA and Canada, with providers such as YieldMax, Roundhill and Defiance enjoying great success. It seems that this wave is now spilling over into Europe.

One important point: these products are not ETFs, but ETPs. This could make legal differences relevant.

Among other things, it is unclear to me whether a partial exemption of distributions is possible.

Does anyone already have these products in their portfolio and could share their experiences? I would be very interested to hear reports.

https://incomeshares.com/en/etps/income-shares-nasdaq-100-options-etp/

https://incomeshares.com/en/etps/income-shares-s-p-500-options-etp/

Hello everyone,

My friend drew my attention to the ETF mentioned above. $WINC (-0,02%) mentioned above. However, I couldn't figure it out. It partially replicates the MSCI World, but pays out over 5%.

I noticed the large cash positions or bonds.

Is the dividend realized via these and the performance via the rest, or am I fundamentally misunderstanding the ETF?

Help and corrections are welcome 👍