Option Strategies

Strategies for clients’ seeking to manage risk and generate cash flow with options. Potential to profit from trading underlying securities through puts and covered calls.

Fund Objective

The Fund’s investment objective is 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 Approach

• The management team builds a portfolio of carefully selected US stocks and writes (sells) covered calls on those positions to reduce overall volatility while adding potential incremental cash flow.
•  Equities are selected in each of the 11 sectors to closely replicate the sector weighting of the S&P 500 Index. The Portfolio Manager has a preference for large cap stocks with attractive dividend yields.
• We identify and purchase approximately 30 equities which we believe have the most over-priced call options. We strategically write (sell) those covered calls two to six times per year to generate cash flow in addition to the portfolio’s dividend yield.

Why Invest in the Shelton Equity Income Fund?

• The Fund has paid dividends since 1997
• The Fund’s TTM is 8.69%*
• Since 2018, EQTIX (14.11%) has a lower standard deviation than the S&P 500 (18.06%) and the 30-year US Treasury T-Bill (16.70%) (as of 12/31/23)**

Morningstar Rating ^TM

      EQTIX

Received an Overall Morningstar Rating ^TM of 5 stars among 71 Derivative Income funds, based on risk-adjusted returns, as of 6/30/2024. Important Information for Morningstar® Rating***

Quarterly Distributions (Trailing 3-Year Period)^1*

Investors cannot directly invest in an index. The Shelton Equity Income Fund writes covered calls against securities held in the the fund. Neither the S&P 500 nor the Bloomberg US Aggregate Bond Index write covered calls and thus can generate a lower dividend yield relative to EQTIX. There are no assurances that we will be successful in reaching the investment objectives. A covered call strategy limits upside potential for stock appreciation and will therefore underperform in strong markets. A covered call strategy does not protect against downside risk.

Fund Information

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Insights and News

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Management Team

Portfolio Manager

Barry Martin, CFA

Barry Martin, CFA, is a Portfolio Manager for Shelton Capital Management’s Option Overlay Strategies. Prior to joining the firm, Mr. Martin was Senior Vice President of portfolio management for an investment management firm specializing in option strategies and has been managing options for over 20 years. He received a B.S. from the University of Arizona.

Portfolio Manager

Nick Griebenow, CFA

Nick Griebenow, CFA

Nick Griebenow, CFA, is a Portfolio Manager for Shelton Capital Management’s Option Overlay Strategies. Mr. Griebenow has extensive knowledge in option strategies and was previously a Senior Derivatives Trader at a large national brokerage firm. He received a B.A. from Colorado State University.

Portfolio Analyst

Jason Goldenberg

Jason Goldenberg is a Portfolio Analyst that services all strategies of the Separate Account program. Jason has five years of industry experience and previously worked at ALPS Fund Services. He earned a B.B.A. from the University of Colorado Boulder.

Portfolio Analyst

Jake Gallion

Jake Gallion joined Shelton Capital Management in March 2026 as a Portfolio Analyst for the firm’s Options Overlay Strategies.

Before joining the firm, Gallion was an Equities Trader at Paradice, a boutique investment manager specializing in global equities, where he ran the firm’s trading desk in support of its Global Small Cap, International All Cap, and Emerging Markets long-only equity strategies. Earlier in his career, he was with ALPS Fund Services, where he oversaw portfolio accounting within the firm’s alternative investments group.

Gallion is an avid golfer and skier, and he enjoys grilling and exploring beautiful Colorado with his wife, their two young daughters and their dog Jax. He earned a B.S. from the University of Colorado Boulder with emphases in Finance and Accounting.

Important Information

*Bloomberg as of 6/30/2024.
***The fund’s Morningstar three-, five-, ten-year ratings respectively, 4 stars, 4 stars, 5 stars among 71, 65, 37 funds.

¹Quarterly Distribution Rate for EQTIX is the historical quarterly payout, expressed as a percentage of NAV that an investor would have received. Quarterly distributions may include ordinary dividends, interest income, capital gains, or return of capital. Distributions may coincide with a decline in NAV. Distribution levels may vary quarter to quarter and no minimum distribution amount can be guaranteed.
¹Quarterly dividend yield for the S&P 500 is the trailing 12-month yield divided by four as of each quarter-end.
¹Quarterly YTM for the Bloomberg Barclays US Aggregate Bond Index is the YTM divided by four as of each quarter-end.

Distribution Rate is the annualized payout, expressed as a percentage of NAV that an investor would receive based on the trailing 12 months. Distributions may include ordinary dividends, interest income, capital gains, or return of capital. Distributions may coincide with a decline in NAV. Distribution levels may vary quarter to quarter and no minimum distribution amount can be guaranteed.

Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any option strategies. There are management fees and other charges associated with the Shelton Separately Managed Account programs.

Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks.

Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com/ or call (800) 955-9988. A prospectus should be read carefully before investing.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.