DENVER, Colo., Aug. 25, 2025 –Shelton Capital Management, a multi-strategy asset manager with over $6 billion in AUM, is pleased to announce that it filed a registration statement with the U.S. Securities and Exchange Commission for the Shelton Equity Premium Income ETF (Ticker: SEPI).1
“We believe SEPI stands apart by selling calls on individual stocks rather than relying on synthetic notes or index option overlays,” said Shelton Capital CEO Steve Rogers. “The fund draws from the same research and management principles that underpin Shelton’s established Overall Morningstar 5-star Flagship Mutual Fund, EQTIX2 and Equity Income Separately Managed Account (SMA).”
The ETF will leverage Shelton’s nearly two decades of expertise in covered call strategies, bringing a powerful investment to the marketplace for income-oriented investors seeking an actively managed solution in an efficient ETF wrapper. SEPI aims to deliver cash flow based on Shelton Capital Management’s experience with similar strategies,3 combining dividends with option premiums generated from writing call options on individual large-cap stocks.
Product-Focused Features:
- Cash Flow Generation: Seeks to deliver capital appreciation and an enhanced cash flow through writing covered calls and/or selling cash secured puts on portfolio positions, thereby enhancing the distribution rates to shareholders.
- Active ETF Management: Risk-aware equity selection with upside opportunity. Covered calls on individual stocks, not indexes or synthetic notes, offer sector diversification & strong risk/reward profiles.
More than 100 derivative-based ETFs have entered the market in recent years—pushing assets in Morningstar’s Derivative Income category from $1 billion in 2018 to over $100 billion.4
“As we continue to pursue innovative vehicle solutions to meet our clients’ needs, we have designed SEPI for investors who want more than a static income fund,” said SEPI’s Senior Portfolio Manager, Barry Martin, CFA. “By actively managing covered calls on individual equities, we can target meaningful cash flow while maintaining the ability to dynamically adjust to evolving market conditions. This allows us to offer clients a differentiated, outcome-oriented strategy with the ease of an ETF—offering intraday trading, low minimums, and real-time pricing.”
The expected launch date of the Shelton Equity Premium Income ETF (Ticker: SEPI) is September 8, 2025.
2 EQTIX received an Overall Morningstar Rating of 5 stars among 74 Derivative Income funds, based on risk-adjusted returns, as of 6/30/2025. The fund’s Morningstar three-,five-, ten-year ratings respectively, 4 stars, 4 stars, 5 stars among 74, 65, 33 funds. The ETF is not a mutual fund and may not achieve the same results.
The expected launch date of the Shelton Equity Premium Income ETF (Ticker: SEPI) is September 8, 2025.
About Shelton Capital Management
Shelton Capital Management (SCM) is a boutique investment firm that helps investors meet financial goals through tailored investment solutions and human-centric customer service. Founded in 1985, the company provides mutual funds, ETFs, and separately managed accounts to the clients of wealth managers, retirement plans, and individual investors. As of 7/31/25, the firm manages over $6 billion across fixed income portfolios, U.S. equity and international equity strategies, ESG solutions, and equity income products leveraging our expertise in options. Over the decades, we’ve collected awards from established sources such as Morningstar, Lipper, Forbes Advisor, and Pension & Investments. The company continues to add key employee talent and expand their institutional expertise. Shelton is headquartered in Denver, Colorado with additional offices in San Francisco. For more information, visit www.sheltoncap.com/.
Important Information
1A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
SCM Trust has filed a registration statement with the U.S. Securities and Exchange Commission for the Shelton Equity Premium Income ETF. The ETF is expected to list on the NYSE Arca.
A preliminary prospectus for the Shelton Equity Premium Income ETF may be obtained by contacting: Shelton Funds.
1125 17th Street, Ste. 2550, Denver, Colorado 80202
Tel: 800-955-9988
Email: info@sheltoncap.com
Website: sheltoncap.com
The Shelton Equity Premium Income ETF (the “Fund”) objective is to seek to achieve a high level of income and capital appreciation (when consistent with high income) by investing primarily in income-producing U.S. equity securities.
The Shelton Equity Premium Income ETF is distributed by Paralel Distributors LLC, Member Firm. Shelton Capital Management is not affiliated with Paralel Distributors LLC.
SEPI Fund Disclosures
Investors should consider the investment objectives, risks, charges, and expenses of the ETF carefully before investing. Please read the prospectus carefully before you invest. Exchange Traded Funds (“ETFs”) are subject to the possible loss of principal. The value of the ETFs will fluctuate with the value of the underlying securities. ETF Shares may trade at prices above or below NAV. Liquidity isn’t guaranteed, and trading may be halted due to market-wide or security-specific events, delisting, or exchange actions.
The value of the Fund’s equity holdings may decline, sometimes unpredictably, due to broader economic, political, or market conditions not specific to individual companies. Because the Fund is primarily invested in U.S. stocks, its value will fluctuate with overall market movements and may decline during market downturns, potentially resulting in losses. The Fund’s use of call and put options can limit upside potential and increase costs, particularly if market movements render the options ineffective or result in expired contracts without value.
Investments in derivatives may be riskier than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment. Positions in equity options can reduce equity market risk, but can limit the opportunity to profit from an increase in the market value of stocks in exchange for upfront cash as the time of selling the call option. Unusual market conditions or the lack of a ready market for any particular option at a specific time may reduce the effectiveness of option strategies and could result in losses.
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The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
3 Cash flow is the money generated or available to distribute to shareholders. Distributions may include option premium, ordinary dividends, interest income, capital gains, or return of capital. Distributions may coincide with a decline in NAV. Distribution levels may vary and no minimum distribution amount can be guaranteed.
4VettFi: The Hunt for Yield: Enhanced Income ETFs Thrive in a Low-Upside Market.
A covered call is an options strategy where an investor owns shares of an underlying stock and sells (or “writes”) a call option on that same stock. By selling the call, the investor collects income (called the “premium”) from the option buyer. The “covered” aspect means the investor holds enough shares of the underlying stock to fulfill their obligation if the call option is exercised.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
