CEPI: REX CRYPTO EQUITY PREMIUM INCOME ETF
REX Crypto Equity Premium Income ETF (CEPI)
The REX Crypto Equity Premium Income ETF (CEPI) is an ETF designed to provide income through an option-based strategy related to crypto-linked equities. It is characterized by a very high distribution yield but has experienced a significant decline in its share price over the last year.
What this ETF is trying to do
CEPI invests in companies related to the cryptocurrency ecosystem. It uses an "option income" strategy to generate cash for investors. This means it doesn't just rely on the stocks going up in value; it uses financial contracts (options) to create extra income.
What the numbers show
The share price of CEPI is currently $31.12. When looking at performance, there is a big difference between the share price and the total return:
• One-Year Price Return: -26.36% (This measures only the change in the share price).
• One-Year Total Return: 10.97% (This reflects the overall return, including distributions).
• Year-to-Date (YTD) Price Return: -7.57%.
• Year-to-Date (YTD) Total Return: 25.43%.
An estimated price from roughly one year ago was $42.26. This shows that while the share price has fallen, the distributions have helped the total return remain positive.
Income and Distribution Explanation
CEPI provides a high amount of cash to its investors. Its distribution yield is approximately 44.42%, with trailing distributions of $13.82. The fund usually pays out monthly and has made 27 payments in the last 12 months.
It is important for beginners to know that a high distribution yield alone can be misleading. It does not guarantee that the investor is making a profit, as the share price can fall at the same time the fund pays out cash.
Price and NAV Erosion Explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, the data shows a severe erosion-risk flag. This was triggered because the fund has a significant price erosion label and an erosion score of 30. This means the share price has shown a substantial downward trend.
Top Holdings
As of October 8, 2026, the fund holds 133 assets. The following are some of the Top Holdings (this is a partial list):
• Robinhood Markets Inc (6.72%)
• Advanced Micro Devices Inc (5.74%)
• Nu Holdings Ltd (5.71%)
• Micron Technology Inc (5.56%)
• Visa Inc (5.37%)
• Mastercard Inc (5.35%)
• Nvidia Corp (5.04%)
• Tesla Inc (4.95%)
Pros
• Provides very high distribution yields for those seeking immediate cash flow.
• Positive one-year and YTD total returns despite a falling share price.
Cons
• Significant share-price decline over the last year.
• Severe erosion-risk flag.
• Income rating grade of "D."
Beginner Takeaway
CEPI is a high-income ETF that pays out a large amount of cash, but its share price has dropped significantly. While the total return is positive, the "severe erosion-risk flag" warns that the principal value of the shares has been deteriorating. Income investors generally care about principal stability so that their original investment doesn't disappear over time.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ROBINHOOD MARKETS INC CLASS A | HOOD | 6.72% |
| 2 | ADVANCED MICRO DEVICES INC | AMD | 5.74% |
| 3 | NU HOLDINGS LTD ORDINARY SHARES CLASS A | NU | 5.71% |
| 4 | MICRON TECHNOLOGY INC | MU | 5.56% |
| 5 | VISA INC CLASS A | V | 5.37% |
| 6 | MASTERCARD INC CLASS A | MA | 5.35% |
| 7 | n/a | COIN | 5.17% |
| 8 | NVIDIA CORP | NVDA | 5.04% |
| 9 | TESLA INC | TSLA | 4.95% |
| 10 | n/a | TSM | 4.94% |