Every Retirement Is Different.
So Is Our Approach.
SEPI and SEPQ seek to address key investor challenges by combining diversified market exposure with monthly income potential, long-term growth participation and tax-aware investment strategies.
Pairing SEPI and SEPQ: Complementary Roles in a Client Portfolio
Helping clients stay invested and generate cash flow.
Different strategies. One active toolkit. Together, SEPI and SEPQ can help advisors diversify across asset classes and income approaches while supporting monthly cash flow, growth participation, and tax efficiency.
SEPI’s Role
Large-cap equity core with individual-stock covered calls. Seeks to generate monthly income through option premiums while keeping clients invested in equity markets with upside participation potential.
Best suited for: Clients seeking equity income ETF exposure, covered call income, and active management in a large-cap equity allocation.
SEPQ’s Role
Actively managed allocation between equities and fixed income with an options-based income overlay. Designed to adjust equity exposure as market conditions change while seeking monthly income and long-term growth participation.
Best suited for: Clients seeking a risk-managed, income-oriented ETF that can adapt across changing market environments.
SEPQ and SEPI Together
SEPI and SEPQ can help advisors diversify across asset classes and income approaches through strategies designed to seek monthly income, participate in potential market growth, and provide potential tax efficiencies.
Best suited for: Clients seeking complementary active-income strategies that combine different sources of income, market exposure, and risk management.
SEPI — Shelton Equity Premium Income ETF
An actively managed equity income ETF that invests in large-cap U.S. stocks and writes covered calls on individual positions to seek monthly income while maintaining equity upside participation.
- Monthly distributions targeting equity premium income while maintaining potential equity upside participation.
- Covered calls written on individual stocks, not indexes
- Actively managed large-cap U.S. equity portfolio
- Distribution Rate: 0.72% (Monthly*) | 30-Day SEC Yield: 0.29%**
SEPQ — STF Tactical Growth & Income ETF
An actively managed tactical allocation ETF that combines growth equities and fixed income with a call-spread options strategy, designed to seek monthly income, support dynamic risk management, and dampen volatility. across market environments.
- Monthly distributions with dynamic risk management
- 5-star Overall Morningstar Rating among 225 Tactical Allocation funds1
- 12-Month Trailing Yield: 11.55% | 30-Day SEC Yield: -0.02%***
* 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 6/30/2026 included an estimated return of capital of 96.53%. 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.
*12-Month Trailing Yield is the yield an investor would have received if they had held the fund over the last 12 months, assuming most recent NAV. It is calculated by summing any income distribution over the past 12 months and dividing by the sum of the most recent NAV.
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. For performance to the most recent month-end, and standardized performance, please click on the respective “Learn More” link above.
SEPI: Shelton Equity Premium Income ETF
Actively managed equity income with individual-stock covered calls
SEPI is built on Shelton’s nearly 20 years of covered call expertise. Rather than writing options on a broad index, SEPI writes covered calls on individual large-cap U.S. stock positions — giving the portfolio team flexibility to pursue income where volatility may be most productive, while keeping clients invested in equity markets.
Why Advisors Use SEPI
- Monthly income potential through option premiums and dividends
- Individual-stock options rather than index overlays for flexibility
- Actively managed large-cap equity portfolio
- Complements traditional equity income and dividend strategies
- Built on the same team managing the 5-star EQTIX mutual fund1
SEPI Fund Details
Ticker
SEPI
Launch Date
9/8/2025
Exchange
NYSE Arca
Net Assets
$152.4M (6/30/2026)
Distribution Rate*
0.72%
30-Day SEC Yield**
0.29%
Management Fee
0.54%
As Featured In
SEPQ: STF Tactical Growth & Income ETF
Tactical allocation with monthly income and Dynamic Risk Management
SEPQ seeks to reduce equity exposure in bearish environments while remaining invested during bullish ones. Its options overlay uses a call-spread strategy to generate monthly income, support dynamic risk management, and dampen portfolio volatility. The ETF structure allows for tax-efficient pivots between equities and bonds — all within a single, actively managed vehicle.
Why Advisors Use SEPQ
Received an Overall Morningstar Rating of 5 stars among 225 US Fund Tactical Allocation funds, based on the risk-adjusted returns, as of 6/30/2026.1 Important Information for Morningstar® Rating.
- Monthly income through an actively managed options overlay
- Dynamic risk management — reduces equity exposure in bearish environments
- Tax-efficient ETF structure allows pivots between equities and bonds
- Managed by Jonathan Molchan with 20+ years of derivatives experience
SEPQ Fund Details
Ticker
SEPQ
Launch Date
5/18/2022
Exchange
NASDAQ
Net Assets
$80.12M (6/30/2026)
12-Mo. Trailing Yield
11.55%
30-Day SEC Yield
-0.02%
Total Expense Ratio
0.65%
SEPI + SEPQ: Why invest in both?
Two Approaches to Income. One Active Toolkit.
Pairing SEPI and SEPQ can can help provide advisors and their clients two distinct ways to pursue income while maintaining exposure to long-term equity growth opportunities.
SEPI and SEPQ seek to address two of the most common advisor challenges — generating consistent monthly income and managing equity risk — through two complementary, actively managed strategies.
Common Questions About SEPI and SEPQ
SEPI is an equity income ETF that invests primarily in large-cap U.S. stocks and writes covered calls on individual positions to seek monthly income. SEPQ is a tactical allocation ETF that dynamically shifts between growth equities and fixed income while using a call-spread options strategy to generate monthly income and seek downside mitigation. SEPI is designed for equity-focused income; SEPQ is designed for risk-managed, multi-asset income.
Yes. Both SEPI and SEPQ follow monthly distribution schedules. Distribution amounts and frequency are not guaranteed and may change over time. Distributions may include option premium, ordinary dividends, interest income, capital gains, and return of capital. See each fund’s page and Form 19a-1 notices for current distribution details.
Covered call ETFs generate income primarily by selling call options on underlying equity holdings. The buyer of the call option pays a premium to the seller — in this case the fund — in exchange for the right to purchase shares at a set price. SEPI writes covered calls on individual stocks in its portfolio, which can offer more flexibility than index-level overlays. That premium income, along with dividends, contributes to the fund’s distributions. The tradeoff is that covered calls can limit upside participation if the stock price rises above the strike price of the option sold.
SEPQ can serve as a risk-managed alternative or complement to pure equity income allocations. Because it dynamically adjusts between growth equities and fixed income based on market conditions, it is designed to reduce equity exposure during bearish environments while remaining invested during bullish ones. For clients who want monthly income but also value downside mitigation, SEPQ may play a role alongside or instead of traditional equity income strategies.
SEPI trades on NYSE Arca and SEPQ trades on NASDAQ. Both are generally accessible through brokerage accounts and advisory platforms that support ETF trading. Availability may vary by platform, custodian, or advisor. Contact your Shelton Capital Management representative for platform-specific information.
Contact Us for More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients.
Important Information
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.
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.
SEPQ 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/sepq/. Read the prospectus carefully before investing.
1SEPQ received an Overall Morningstar RatingTM of 5 stars among 225 US Fund Tactical Allocation funds, based on risk-adjusted returns, as of 6/30/2026. The fund’s Morningstar three -year rating was respectively 5 stars among 225. The Morningstar RatingTM 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 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.
© 2026 Morningstar, Inc. All rights reserved. The information contained herein relating to Morningstar: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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 ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Cash Redemption Risk. The Fund’s investment strategy may, at times, require it to redeem shares for cash or to otherwise include cash as part of its redemption proceeds. In that case, the Fund may be required to sell or unwind portfolio investments to obtain the cash needed, which may cause the Fund to recognize a capital gain that it might not have recognized if it had made a redemption in kind. Derivatives (Options) Risk. The Fund invests in options that derive their performance from that of the Nasdaq-100 Index. Derivatives may be more sensitive to changes in market conditions and may amplify risks. Selling and buying options are speculative activities and entail greater than ordinary investment risks. Fixed Income Risk. Fixed income investments are subject to changes in governmental policy and market conditions, which may cause such investments to be subject to significant volatility and reduced liquidity, depending on the environment. Fixed Income – Call Risk. During periods of falling interest rates, an issue of a callable bond held by the Fund may call or repay the security before maturity, causing the Fund to reinvest proceeds at a lower interest rate. Fixed Income – Credit Risk. Debt issuers and other counterparties may not honor their obligations or have their debt downgraded by ratings agencies. Fixed Income – Extension Risk. During periods of rising interest rates, certain debt obligations will be paid off more slowly than anticipated, causing the value of those securities to fall. This may result in a decline in the Fund’s income and potential value of the Fund’s investments. Fixed Income – Interest Rate Risk. Rising interest rates may cause the value of fixed-income securities held by the Fund to decline. Large-Capitalization Investing Risk. The securities or large capitalization companies may be relatively mature compared to smaller companies and therefor subject to slower growth during times of economic expansion. Management Risk. The Fund is actively managed and may not meet its investment objective based on the Adviser’s success or failure in implementing the Fund’s strategy. Models and Data Risk. When models and data prove to be incorrect or incomplete, decisions made based on them can expose the Fund to potential risks. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in securities of a single issuer or fewer issuers than a diversified fund, which may expose the Fund to the risks associated with the developments affecting the issuers in which the Fund invests. Other Investment Company Risk. By investing in another investment company, including ETFs, the Fund becomes a shareholder of that investment company and bears its proportionate share of the fees and expenses of that investment company. In addition, the Fund is also subject to the principal risks of the investment companies in which it invests U.S. Treasury Obligations Risk. Changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s U.S. Treasury obligations to decline.
Shelton Capital Management serves as the Fund’s investment adviser.
The Shelton Equity Premium Income ETF (SEPI) is distributed by Paralel Distributors, LLC.
The STF Tactical Growth and Income ETF (SEPQ) is distributed by Foreside Fund Services, LLC.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.