ULTI: REX IncomeMax Option Strategy ETF
REX IncomeMax Option Strategy ETF (ULTI)
The REX IncomeMax Option Strategy ETF (ULTI) is an exchange-traded fund listed on the NASDAQ. This ETF is designed to provide regular cash distributions to its investors.
What this ETF is trying to do
ULTI focuses on generating income through a specific strategy. Based on its top holdings, the fund invests in a variety of companies across different sectors, such as technology and semiconductor firms. Because it is an income-focused fund, it aims to pay out cash to shareholders frequently.
What the numbers show
The data shows a significant difference between the fund's share price and its total return for the year to date (YTD).
• Price Return: The YTD price return is -57.99%. This means the actual market price of each share has dropped by approximately 58% since the start of the year.
• Total Return: The YTD total return is -26.80%. Total return includes both the change in share price and the cash distributions received.
Because the total return is higher than the price return, it indicates that the cash distributions helped offset some of the losses caused by the falling share price.
Income and distribution explanation
ULTI is characterized by a very high distribution yield of approximately 144.54%. This number describes the cash distributions relative to the current ETF price.
The fund provides very frequent payouts. Over the last 12 months, there were 48 distributions, which is a "weekly-like" frequency. Most of these payments occurred on Thursdays. It is important to remember that a very high distribution yield does not mean an investor earned that percentage as their total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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.
We can see significant price erosion, meaning the market price of the shares has declined sharply. While a falling share price is not the same thing as NAV erosion, investors often watch both to understand how much value a fund is retaining.
Pros
• High Frequency: The fund provides very frequent cash payments (weekly-like).
• High Yield: The distribution yield is very high compared to the current share price.
Cons
• Share-Price Decline: The fund has experienced a large YTD price return decline of approximately 58%.
• High Volatility in Returns: There is a large gap between the price return and the total return, showing that the share price is dropping significantly.
Beginner takeaway
ULTI is a fund that pays out cash very frequently, often appearing like a weekly payment. However, the share price has dropped significantly this year. When looking at high-yield ETFs, it is important to look at the total return rather than just the distribution yield. The total return shows how much value you actually have after both price changes and cash payments are combined.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLIED OPTOELECTRONICS INC | AAOI | 5.49% |
| 2 | ASTERA LABS INC | ALAB | 5.48% |
| 3 | LUMENTUM HOLDINGS INC | LITE | 5.31% |
| 4 | n/a | ASTS | 5.22% |
| 5 | HYPERLIQUID STRATEGIES INC | PURR | 5.12% |
| 6 | NEBIUS GROUP NV SHS CLASS-A- | NBIS | 5.07% |
| 7 | COREWEAVE INC ORDINARY SHARES CLASS A | CRWV | 4.96% |
| 8 | CASH OFFSET | n/a | 4.95% |
| 9 | BLOOM ENERGY CORP CLASS A | BE | 4.92% |
| 10 | STRIVE INC CLASS A | ASST | 4.85% |