What to Look Out for As More Option ETFs Keep Coming

Income Investing
by Tim Plaehn
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Over the last couple of years, ETF sponsors have flooded the market with new funds that use options strategies to enhance income or protect principal values. These funds use very advanced options strategies to achieve their goals, so by definition, they are not easy to understand or evaluate.

Our Investors Alley team has assembled a database of almost 60 options strategy ETFs. Now, a fund sponsor has put out a prospectus with another 18 ETFs that use options.

Let’s take a look…

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ThemesETFs has published a preliminary prospectus listing these new ETFs:

  • Themes AAPL Options Income ETF
  • Themes Russell 2000 Dual Options Income ETF
  • Themes Russell 2000 Enhanced Dual Options Spread Income ETF
  • Themes Russell 2000 Ultra Enhanced Dual Options Spread Income ETF
  • Themes S&P 500 Dual Options Income ETF
  • Themes S&P 500 Dynamic Covered Call ETF
  • Themes S&P 500 Enhanced Dual Options Spread Income ETF
  •  Themes S&P 500 Ultra Enhanced Dual Options Spread Income ETF
  • Themes TSLA Options Income ETF
  • Themes VIX Options Income ETF
  • Themes AMZN Options Income ETF
  • Themes COIN Options Income ETF
  • Themes GOOGL Options Income ETF
  • Themes MSFT Options Income ETF
  • Themes NVDA Options Income ETF
  • Themes Nasdaq 100 Dual Options Income ETF
  • Themes Nasdaq 100 Enhanced Dual Options Spread Income ETF
  • Themes Nasdaq 100 Ultra Enhanced Dual Options Spread Income ETF

It appears that these funds will start to trade in April. Ticker symbols and fees are not yet available.

The single-stock ETFs appear to be a plan to jump on the bandwagon started by the YieldMax ETFs. It will be interesting to do side-by-side comparisons. The other new funds employ a range of options strategies. It will take some deep-dive research to get a handle on what they are trying to accomplish. After that, we will need to see how the funds perform in the wild.

Our team continues to work on a service that will provide a detailed and understandable analysis of the many ETFs now using options strategies to enhance returns. I already know that some will indeed enhance returns, while others will leave much to be desired.

Stay tuned for more on these option ETFs.

Author: Tim PlaehnTim is the lead investment research analyst for income and dividend investing at Investors Alley. He is the editor for The Dividend Hunter, an investment advisory focused on creating a high-yield income stream and it's companion service The Dividend Hunter Insiders, Weekly Income Accelerator, a covered call trading service, and for investors looking for long-term total returns from their income investments using stocks with ever-growing dividend payments, he offers Monthly Dividend Multiplier. He co-edits POWR Income with Jay Soloff. Prior to his work with Investors Alley, Tim was a stock broker, a Certified Financial Planner, and F-16 Fighter pilot and instructor with the United States Air Force. During his time in the service he was stationed at various military locations in the U.S., Europe, and Asia. Tim graduated from the United States Air Force Academy with a degree in mathematics. In his free time he tours the United States parks, campgrounds, and wilderness areas in his travel trailer.
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