This is an active ETF that combines US value stocks with option strategies. The management team selects and holds undervalued large-cap stocks and overlays option positions, such as call and put spreads, to target premium income. Rather than tracking an index, the structure involves selecting stocks through discretionary judgment.

It aims to achieve both value stock appreciation and option premium income, making it suitable for investors who place more trust in management judgment than in index-based value ETFs.

This is an actively managed ETF operated by XFUNDS.

Most of the assets under management are allocated to US value stocks, ETFs tracking US value indices, and options on them. While stocks are selected with a focus on undervalued large-cap companies, there is also some exposure to small and mid-cap stocks. For options, the fund combines call/put spreads, cash-secured put selling, and covered calls according to market conditions. Treasury bonds and cash-like assets are utilized for liquidity and as option collateral.

• Dual revenue sources from value stocks and option income
• Discretionary stock selection instead of index tracking
• Use of Treasuries and cash for option collateral

Assets Under Management (AUM) is $0.5M(approx. ₩700M), and the Expense Ratio is 0.75% per annum.

As it was recently listed, the average daily trading volume and bid-ask spreads have not yet stabilized. Even with similar value stock exposure, there is a cost difference compared to low-fee index products, so the key is whether the option income offsets that difference.

Since it has not been listed for long, it is premature to discuss long-term return trends. Performance is structured to be generated by the overlap of value stock cycles and option premium income. In the early stages, a gap may widen between the NAV and the market price, so it is advisable to check the quotes before trading.

Newly listed funds often start with small initial capital inflows, so it takes time for the net asset size to grow. The fund's structure attracts capital when demand for option income and a preference for value stocks coincide, and demand for bond alternatives also fluctuates depending on interest rate levels.

Its strength lies in combining value stocks and option income into a single product, while its drawbacks include high expense ratios, a short track record, and upside limitations from its option strategy.

Since comparable data for similar listed products for this fund is limited, it is necessary to look at alternatives from the perspective of asset classes and strategies. If you want pure value stock exposure, index-based value ETFs like VTV serve as low-cost alternatives, and if you focus on dividend income, the SCHD series is a point of comparison. If you are directly targeting option premium income, you can compare the strategic differences with covered call products like JEPI.

These are items to verify when reviewing this product. Since the structure involves both value stocks and options, it is advisable to separately examine the expense ratio, distribution policy, and the upside limitation of the option strategy.

Because the option-selling position is a structure that receives premiums in exchange for sacrificing some profit during a rising market, it may underperform index-based value ETFs in a bull market. Investors must also account for potential liquidity shortages and distribution volatility characteristic of a newly launched fund.

This is a candidate for review for investors who want to capture both value stock selection and option income at once. However, considering the costs and management history, it is better to determine the allocation after comparing it with index-based value ETFs or covered call products.