XFUNDS Launches VOOY to Pair U.S. Large-Cap Equities with Options-Based Income

ATLANTA--(BUSINESS WIRE)-- XFUNDS, a leading provider of actively managed ETFs, today announces the launch of the XFUNDS Large Cap Income ETF (VOOY).

VOOY is an actively managed ETF that combines a portfolio of U.S. large-cap equities with options strategies designed to generate option premiums and cash distributions. The fund invests primarily in ETFs that track U.S. large-cap equity indices, which generally include companies with market capitalizations exceeding $10 billion or are considered industry leaders that tend to produce dividends and exhibit lower stock price volatility. In addition to its equity portfolio, VOOY will seek to generate option premium by using call and put spreads on individual securities or ETFs.

“Large-cap stocks are at the core of many investors' portfolios, but we think there's an opportunity to make that exposure work harder,” says David Nicholas, CEO of XFUNDS. “Investors value the simplicity of a buy-and-hold approach, but income has become an important part of what they want from their portfolios. With VOOY, the idea is simple: invest U.S. large cap equities while creating another potential source of income.”

VOOY may use other option strategies, including stand-alone or single-leg options, short call options or cash-secured puts. It may also hold U.S. Treasury bills, money market funds, and other cash equivalents to provide liquidity or serve as collateral for its options positions.

VOOY joins XFUNDS' growing lineup of actively managed ETFs spanning income, alternatives and thematic strategies. Learn more at https://nicholasx.com.

About XFUNDS

XFUNDS is a leading provider of actively managed ETFs. XFUNDS' research primarily focuses on mitigating risk by utilizing derivatives and income-producing securities. The firm's strategies attempt to find non-correlated returns in both up and down-market cycles. They use distinct tactics to measure risk and minimize portfolio volatility. VOOY joins a growing fund lineup that includes: XCSH, FITZ, FIZY, FIAX, GIAX, BLOX, GLDN, SLVX, NUKX, WEPN, BHDG, NGHT and DRMY. Learn more at nicholasx.com.

Important Information

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 563-6900 or visit our website at www.nicholasx.com. Read the prospectus or summary prospectus carefully before investing.

Investments involve risk. Principal loss is possible.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in option contracts which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund.

NAV Erosion Risk Due to Distributions. When the Fund makes a distribution, the Fund’s NAV will typically drop by the amount of the distribution on the related ex-dividend date. The repeated payment of distributions by the Fund, if any, may significantly erode the Fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.

Equity Market Risk. By virtue of the Fund’s investments in option contracts equity ETFs and equity indices, the Fund is exposed to common stocks indirectly which subjects the Fund to equity market risk.

High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses

Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

FLEX Options. FLEX exchange options are customizable contracts traded on major exchanges. They let investors choose strike prices, expiration dates, exercise styles, and other terms. FLEX options are more flexible than standard options, reducing counterparty risk because they’re traded on exchanges and cleared through the Options Clearing Corporation. Institutional investors commonly use FLEX options to create tailored strategies. They generally don’t have the same position limits as standard options, giving traders more freedom to manage large investments.

Large-Capitalization Investing. The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying security or instrument, including the anticipated volatility, which is affected by fiscal and monetary policies, changes in the actual or implied volatility of the underlying security or instrument, the time remaining until the expiration of the option contract and economic events.

Distributed by Foreside Fund Services, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260902368676/en/

Media contact:
Gregory Agency for XFUNDS
[email protected]

Source: Nicholas Wealth Management

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