TSPY ETF

Looking for Reliable
Daily Income with Market Growth Potential?

Fact Sheet
Prospectus

Since the inception of the TappAlpha SPY Growth & Daily Income ETF (TSPY), it has outperformed many of its equity income peers. 

The chart below compares the total return performance of several peers with the S&P 500 serving as a baseline for comparison.

TSPY vs SPYI, JEPI, S&P 500
Performance Since Inception (8/15/24 - 1/15/25)
Total Returns
Benchmark
7.78
4.18
6.99
7.34
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained above. Returns less than one year are not annualized. Standardized performance current to the most recent month-end and quarter-end can be obtained by visiting any of the corresponding ETF funds pages by clicking on their ticker: TSPY, JEPI, SPYI or by calling (844) 403-2888. The funds shown are managed differently and do not perform the same in various economic or market events. The funds investment objectives, strategies, policies, insurances, and restrictions can be found in their respective prospectuses, found by clicking the aforementioned links. More information regarding the differences in these ETFs is available by clicking here.

The TappAlpha SPY Growth & Daily Income ETF (TSPY) offers a compelling approach for investors seeking consistent income paired with exposure to the S&P 500’s performance.

Through a daily covered call strategy, TSPY is designed to generate income from option premiums while aligning with the market’s growth, positioning it as a unique and strategic option for income-focused investors.

Seeking Consistent Income Generation and Market Participation

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TSPY's strategy aims to balance steady income with the potential for market-based gains. By selling “out-of-the-money” options on a daily basis, TSPY seeks to captures premium income efficiently, with the flexibility to adjust based on market conditions.

This structure is designed to provide investors with opportunities to benefit from income while participating in the upward potential of the S&P 500 index, with the aim of enhancing TSPY's value as both an income and growth investment option.

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Key Considerations for TSPY

1

Income Consistency Through Options Strategy

TSPY employs a daily covered call approach on SPY, aiming to generate premium income consistently. This potential enables TSPY to deliver steady income that is less impacted by long-term market volatility.

2

Managed Upside Participation

While the covered call approach limits TSPY’s full upside potential, it allows investors to participate in market growth up to a certain cap. This feature makes TSPY suitable for income-focused investors who also seek some capital appreciation.

3

Diversified S&P 500 Exposure with Income Focus

TSPY provides exposure to the broad S&P 500 Index while seeking to incorporate income generation through options. This dual focus allows investors to maintain broad market exposure without sacrificing income potential.

4

Expense Efficiency

With a competitive expense structure, TSPY offers an affordable option for investors compared to similar funds. This makes it an appealing choice for those looking to manage costs while seeking both income and growth exposure.

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Disclosures

The principal risks affecting shareholders’ investments in the Fund including the risks of the investment strategies of the Index are set forth below. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. The Fund’s Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objectives.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Investing involves risk. Principal loss is possible. The Fund’s shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objectives. The Fund invests in options contracts that are based on the value of the Index, including SPX and XSP options. This subjects the Fund to certain of the same risks as if it owned shares of companies that comprised the Index, even though it does not own shares of companies in the Index. The Fund will have exposure to declines in the Index. The Fund is subject to potential losses if the Index loses value, which may not be offset by income received by the Fund. By virtue of the Fund’s investments in options contracts that are based on the value of the Index, the Fund may also be subject to an indirect investment risk, an index trading risk & an S&P 500 Index Risk.

To the extent that the Fund invests in other ETFs or investment companies, the value of an investment in the Fund is based on the performance of the underlying funds in which the Fund invests and the allocation of its assets among those ETFs or investment companies. The Fund may incur high portfolio turnover to manage the Fund’s investment exposure. The Fund is classified as “non-diversified” under the 1940 Act. As a result, the Fund is only limited as to the percentage of its assets which may be invested in the securities of any one issuer by the diversification requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”). A decline in the value of an investment in a single issuer could cause a Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio. For more information about the risks of investing in this Fund, please see the prospectus.

The SPDR® S&P 500® ETF Trust. The SPDR® S&P 500® ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index (the “Index”).

The S&P 500® Index. The S&P 500® Index is a widely recognized benchmark index that tracks the performance of 500 of the largest U.S.- based companies listed on the New York Stock Exchange or Nasdaq. These companies represent approximately 80% of the total U.S. equities market by capitalization, making it a large-cap index. The S&P 500® Index includes 500 selected companies, all of which are listed on national stock exchanges and spans a broad range of major sectors. The five largest sectors in the Index as of December 29, 2023 were information technology, financials, healthcare, consumer discretionary and industrials. This distribution can vary over time as the market value of these sectors change. Regarding volatility, the S&P 500® Index, like all market indices, has experienced periods of significant daily price movements. However, the specific degree of volatility can vary and is subject to change based on overall market conditions. Despite these periods of volatility, the Index has shown long-term growth over its history.

Due to the short time until their expiration, 0DTE options are more sensitive to sudden price movements and market volatility than options with more time until expiration. Because of this, the timing of trades utilizing 0DTE options becomes more critical. Even a slight delay in the execution of 0DTE trades can significantly impact the outcome of the trade. 0DTE options may also suffer from low liquidity, making it more difficult for the Fund to enter into its positions each morning at desired prices. The bid-ask spreads on 0DTE options can be wider than with traditional options, increasing the Fund's transaction costs and negatively affecting its returns. These risks may negatively impact the performance of the fund.

As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected. The Fund may incur high portfolio turnover to manage the Fund’s investment exposure. Additionally, active market trading of the Fund’s Shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions. High levels of portfolio transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. Each of these factors could have a negative impact on the performance of the Fund.

You could lose money by investing in the Fund and the Fund may not achieve its investment objectives.

Past performance does not guarantee future results.

TappAlpha:
3700 W. Lawton Street, Seattle, Washington 98199

Investors should carefully consider the investment objectives, risks, charges and expenses of the ETFs identified on this site. This and other important information about the Fund are contained in the prospectus, which can be obtained on this site or by calling (844) 403-2888. The prospectus should be read carefully before investing.

Investing in securities involves risk, including the potential loss of principal.

Distributor: Foreside Fund Services, LLC, Member FINRA.‍

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9/30/2024 Holdings