Parametric Equity Plus ETF (PEPS)
Parametric Equity Plus ETF operates in the Asset Management industry of the Financial Services sector, headquartered in Boston, MA, US. The stock last traded at $32.97, up 0.09% on the session, giving a market capitalisation of $29.5M. Its beta of 1.03 implies it has historically moved more than the broad market.
PEPS is an actively managed fund that aims for long-term capital appreciation by primarily investing in a portfolio of large US companies. Specifically, it holds stocks found within the Solactive GBS United States 500 Index. A key element of its strategy involves a beta-neutral call overwriting approach, where the fund sells short-dated, out-of-the-money call options on the S&P 500 Index. This options strategy is paired with compensatory long equity exposure, which includes positions in S&P 500 Index futures, FLEX Options referencing the S&P 500 Index, and the SPY ETF. The fund's overall performance is predominantly driven by its equity holdings. To avoid straddle rule implications, PEPS carefully limits the overlap between its equity investments and the underlying components of its options. It also implements tax loss harvesting strategies within its equity portfolio. While the sale of call options may lead to foregoing some upside market participation, the fund's sub-adviser proactively seeks to ladder these written call positions to lessen this potential limitation.
Parametric Equity Plus ETF is most often compared with the following Financial Services names: