SEPI: The Shelton Equity Premium Income ETF
SEPI is a differentiated, actively managed ETF built around carefully selected U.S. stocks and covered calls on individual positions to combine equity exposure with cash flow potential.
Distribution Frequency
Monthly
Distribution Rate*
0.71%
30-Day SEC Yield**
0.40%
Management Fee
0.54%
Why Invest in SEPI?
- Shelton’s deep expertise in call options trading and equity selection including our Morningstar 5-star (10-YR) Flagship Mutual Fund, EQTIX and Equity Income Separately Managed Account (SMA).1
- The options on individual stocks may enhance flexibility for SEPI to monetize volatility and capture potential upside of equities.
- Offers a large-cap blended equity portfolio while seeking to generate consistent cash flow through the sale of covered calls.2
1EQTIX received an Overall Morningstar Rating of 4 stars among 82 Derivative Income funds, based on risk-adjusted returns, as of 3/31/2026. The fund’s Morningstar three-,five-, ten-year ratings respectively, 3 stars, 3 stars, 5 stars among 82, 66, 40 funds. The ETF is not a mutual fund and may not achieve the same results.
2Cash flow is the money generated or available to distribute to shareholders.
Objective
The Shelton Equity Premium Income ETF (the “Fund”) seeks 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.
Fund Details
Ticker
SEPI
Launch Date:
9/8/2025
Primary Exchange:
NYSE Arca
CUSIP:
78410K667
Net Assets:
$96.7 M as of 3/31/2026
# of Holdings (view all holdings):
40-50
Fund Documents
Why Advisors Use SEPI for Equity Income Exposure
- Targets cash flow through option premiums and dividends.
- Covered calls are written on individual stocks, not indexes.
- Seeks lower volatility and reduce overall equity risk.
- Complements traditional income and dividend allocations.
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Distribution Rate & Yield
Data as of: May 29, 2026
| Distribution Frequency | Monthly | 30-Day SEC Yield** |
| Distribution Rate* | 0.71% | 0.40% |
* Distribution Rate is the current distribution over NAV per share. Distributions may include option premium, ordinary dividends, interest income, capital gains, and return of capital. The distribution on 01/31/2026 included an estimated return of capital of 98.27%. Distributions may coincide with a decline in NAV. Distribution levels may vary and no minimum distribution amount can be guaranteed. See Form 19a-1.
** 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent month end. This figure reflects the income earned from dividends – excluding option income – during the period after deducting the Fund’s expenses for the period.
NAV & Market Price
Data as of: June 12, 2026
| Net Asset Value | $27.77 | Closing Price | $27.81 |
| Daily Change | $0.09 | Daily Change | $0.13 |
| % Daily Change | 0.31% | % Daily Change | 0.47% |
| 30-Day Median Bid/Ask Spread | 0.14% | Premium Discount | 0.15% |
| Premium Discount History | |||
Fund Holdings
View all holdings
Data as of: June 15, 2026
| TOP 10 HOLDINGS | |||
| Advanced Micro Devices Inc | 6.93% | NVIDIA Corp | 4.32% |
| Caterpillar Inc | 6.42% | Goldman Sachs Group Inc/The | 4.29% |
| Micron Technology Inc | 5.8% | Microsoft Corp | 3.74% |
| Apple Inc | 5.5% | Amazon.com Inc | 3.51% |
| Alphabet Inc | 4.91% | Exxon Mobil Corp | 3.46% |
Fund holdings are subject to change at any time and should not be considered recommendations to buy or sell any security.
Management Team
Barry Martin, CFA
Nick Griebenow, CFA
Jason Goldenberg
Jake Gallion
| CUMULATIVE (%) | |||||
|---|---|---|---|---|---|
| 1 Mo. | 3 Mo. | 6 Mo. | YTD | Since Inception* | |
| Month end as of May 29, 2026 | |||||
| Fund NAV (28.15) | 5.24% | 10.79% | 11.49% | 10.91% | 19.21% |
| Market Price (28.17) | 5.08% | 10.93% | 10.46% | 11.00% | 19.42% |
| The CBOE BuyWrite Index | 2.09% | 2.89% | 6.75% | 5.01% | 13.24% |
| S&P 500 Composite Stock Index | 5.26% | 10.51% | 11.31% | 11.25% | 17.67% |
| Quarter end as of March 31st, 2026 | 1Q26 | YTD | 1YR | 3YR | Since Inception* |
| Fund NAV (24.96) | -3.05% | -3.05% | N/A | N/A | 4.21% |
| Market Price (26.31) | -2.65% | -2.65% | N/A | N/A | 4.73% |
| The CBOE BuyWrite Index | -0.92% | -0.92% | 11.35% | 11.00% | 6.84% |
| S&P 500 Composite Stock Index | -4.35% | -4.35% | 17.77% | 18.27% | 1.17% |
*Fund inception date: 9/8/2025. The performance data quoted represents past performance and does not guarantee future results. 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 the original cost. Current performance may be lower or higher than the performance quoted. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Ordinary brokerage commissions may apply and will reduce returns. Returns include reinvestment of dividends and capital gains.
Indexes are unmanaged and it’s not possible to invest directly in an index. The S&P 500 Total Return Index is a market-cap-weighted index of the 500 largest U.S. publicly traded companies. The Cboe BuyWrite Index (BXM) tracks the performance of a hypothetical buy-write strategy on the S&P 500 Index. SEPI differs substantially from the S&P 500 and BXM indexes, which are used for comparison purposes as widely recognized measure of U.S. stock market performance
| September 8th through March 31, 2026 | |
| Days Traded at Premium | 137 |
| Days Traded at Net Asset Value | 0 |
| Days Traded at Discount | 5 |
SEPI Distributions
| EX-DATE | RECORD DATE | PAYABLE DATE | AMOUNT |
| 2025-10-30 | 2025-10-30 | 2025-10-31 | 0.18 |
| 2025-11-28 | 2025-11-28 | 2025-12-01 | 0.17 |
| 2025-12-30 | 2025-12-30 | 2025-12-31 | 0.19 |
| EX-DATE | RECORD DATE | PAYABLE DATE | AMOUNT |
| 2026-1-29 | 2026-1-29 | 2026-1-30 | 0.19 |
| 2026-2-26 | 2026-2-26 | 2026-2-27 | 0.19 |
| 2026-3-30 | 2026-3-30 | 2026-3-31 | 0.19 |
| 2026-4-29 | 2026-4-29 | 2026-4-30 | 0.19 |
| 2026-5-28 | 2026-5-28 | 2026-5-29 | 0.20 |
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Common Questions
SEPI is the Shelton Equity Premium Income ETF, an actively managed equity income ETF that invests primarily in a portfolio of large-cap stocks and uses an options-based strategy that seeks to generate cash flow. For investors researching ETF options trading strategies, covered call ETFs, or equity income ETFs, SEPI is designed to combine equity exposure with an options overlay that may support distributions over time.
SEPI seeks to generate cash flow primarily by writing covered call options on individual stocks held in the portfolio. The Fund may also generate cash flow from dividends and other sources that can contribute to distributions.
Distributions may include:
- Option premium
- Dividends
- Interest income
- Capital gains
- Return of capital
Because distributions can come from multiple sources, the structure of distributions may vary over time.
SEPI is different from some equity income ETFs because it writes covered calls on individual portfolio holdings rather than using a uniform index-based overlay. This may provide the portfolio management team with more flexibility in how it monetizes volatility, manages option coverage, and adjusts positioning across holdings. SEPI is also actively managed, which means the portfolio team can adjust stock selection and options positioning over time as market conditions change.
Using options on individual stocks may offer greater flexibility than applying the same options strategy across an entire index. This approach can allow the team to evaluate volatility, income potential, and coverage decisions at the stock level. For investors comparing ETF options trading approaches, this means SEPI can take a more tailored path to managing its equity and options exposure.
SEPI is actively managed, which means the investment team makes ongoing decisions about portfolio construction, stock selection, and options positioning. The Fund does not follow a static or purely rules-based process. This active approach allows the team to respond to changing market conditions and evaluate where equity exposure and options coverage may be most appropriate.
SEPI may be relevant for investors looking for:
- A strategy that seeks to support consistent cash flow through option premiums and dividends
- An actively managed equity income ETF
- A covered call ETF strategy
- Large-cap equity exposure
- An ETF that uses an options-based income approach
Investors should consider their investment goals, risk tolerance, time horizon, and need for current income before investing.
SEPI follows a monthly distribution schedule. Current distribution information is available on the fund page for the most recent details. Distribution amounts and frequency may change over time and are not guaranteed.
SEPI’s distribution rate and 30-Day SEC yield measure different things. The distribution rate reflects the current distribution relative to NAV per share and may include multiple components, such as option premium, dividends, capital gains, interest income, and return of capital. The 30-Day SEC yield is a standardized yield calculation that reflects income earned from dividends and interest, net of expenses, over the period. It does not include option income in the same way the distribution rate may reflect broader sources of cash flow. For investors comparing equity income ETFs, this distinction is important because a higher distribution rate does not necessarily mean a higher standardized yield.
SEPI is listed on NYSE Arca. Investors can generally access the Fund through brokerage accounts and advisory platforms that offer ETF trading. Availability may vary by platform, advisor, or custodian.
You can find SEPI fund documents and portfolio information on the SEPI fund page and at advisor.sheltoncap.com/literature.
These materials can help investors better understand the ETF’s strategy, portfolio, risks, and current positioning.
SEPI may be considered by investors exploring income-oriented ETF strategies, especially those interested in the combination of large-cap equity exposure and an options-based income approach. Whether it fits in a portfolio depends on the investor’s objectives, tax considerations, overall asset allocation, and tolerance for equity and options-related risk.
SEPI writes covered calls on individual stocks held in the portfolio as part of its actively managed income strategy. The level of options coverage can vary over time based on portfolio construction and market conditions, so investors should review current fund materials for the most up-to-date positioning.
SEPI primarily uses covered calls on individual stocks as part of its equity income approach. Investors who want more detail on the ETF’s permitted use of options and derivatives should review the prospectus for the most complete description of the strategy and its investment tools.
A SEPI distribution may include return of capital along with other components such as option premium, dividends, interest income, and capital gains. In this context, return of capital is a tax classification. Because covered call strategies generate cash flow differently than traditional stock funds, part of a distribution may be classified as return of capital even when the strategy is functioning as intended. Return of capital reduces an investor’s cost basis, so investors should review fund notices and consult a tax advisor about their specific situation.
Contact Us for More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients.
IMPORTANT INFORMATION
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
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (800) 955-9988 or visit https://advisor.sheltoncap.com/investment-solutions/exchange-traded-funds/sepi/. Read the prospectus carefully before investing.
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 Fund is new with a limited operating history.
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.
Cash flow is the money generated or available to distribute to shareholders. Distributions may include option premium, ordinary dividends, interest income, capital gains, and return of capital. Distributions may coincide with a decline in NAV. Distribution levels may vary and no minimum distribution amount can be guaranteed.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.