SEPI: SHELTON EQUITY PREMIUM INCOME ETF
What this ETF is trying to do
The Shelton Equity Premium Income ETF (SEPI) is an exchange-traded fund that focuses on generating income. It is an "option income" ETF, which means it uses specific financial strategies involving options to create extra cash for investors.
What the numbers show
As of October 5, 2026, the share price of SEPI was $29.03.
When looking at performance, it is important to distinguish between price return (how much the share price changed) and total return (which includes both the price change and the cash distributions).
• Year-to-Date (YTD): The price return was 10.34%, while the total return was 17.68%.
• One-Year: The price return was 12.43%, while the total return was 21.54%.
To put this in perspective, if you had invested $10,000 exactly one year ago at the estimated price of $25.82, the price-only increase would have grown that investment to approximately $11,243.
Income and distribution explanation
SEPI is designed to provide regular cash payments. It usually pays distributions monthly and has made 11 payments over the last 12 months.
The distribution yield is 7.30%. This percentage describes the cash paid out relative to the ETF's price. It is important for beginners to know that a high yield alone can be misleading; it does not guarantee that the total investment is growing or that the original money invested is safe.
NAV erosion explanation
"NAV erosion" happens when the actual value of the fund's assets drops over time, often causing the share price to fall even if the fund pays high distributions.
For SEPI, the erosion-risk score is 100, and the label is "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.
Top Holdings
The fund holds 145 different assets. As of October 7, 2026, the top holdings (which are a partial list) include:
• Advanced Micro Devices Inc: 6.05%
• Apple Inc: 5.81%
• Caterpillar Inc: 5.47%
• Micron Technology Inc: 5.34%
• Microsoft Corp: 4.71%
• Nvidia Corp: 4.51%
• Alphabet Inc Class A: 4.50%
• The Goldman Sachs Group Inc: 4.02%
• Amazon.com Inc: 3.71%
• ExxonMobil Holdings Corp: 3.68%
Pros
• Has shown positive price and total returns over the last year.
• Provides frequent, usually monthly, cash distributions.
• No price erosion has been detected based on the erosion-risk score.
Cons
• Three-year performance data was not supplied.
• The distribution yield does not guarantee the preservation of the original investment.
Beginner takeaway
SEPI is an income-focused ETF that uses options to pay investors. While it has had a positive year in both share price and total return, investors should remember that the distribution yield is separate from the price movement of the shares.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ADVANCED MICRO DEVICES INC | AMD | 6.05% |
| 2 | APPLE INC | AAPL | 5.81% |
| 3 | CATERPILLAR INC | CAT | 5.47% |
| 4 | MICRON TECHNOLOGY INC | MU | 5.34% |
| 5 | MICROSOFT CORP | MSFT | 4.71% |
| 6 | NVIDIA CORP | NVDA | 4.51% |
| 7 | ALPHABET INC CLASS A | GOOGL | 4.50% |
| 8 | THE GOLDMAN SACHS GROUP INC | GS | 4.02% |
| 9 | AMAZON.COM INC | AMZN | 3.71% |
| 10 | EXXONMOBIL HOLDINGS CORP | XOM | 3.68% |