Aptus Capital Advisors has launched an actively managed ETF combining short-duration fixed income securities with an equity options overlay designed to enhance total income.

The fund seeks to deliver consistent income that is uncorrelated to traditional sources of yield.

The Aptus Enhanced Yield ETF (JUCY US) has been listed on Cboa BZX Exchange with an expense ratio of 0.59%.

JUCY aims to provide attractive income consistent with capital preservation.

The fund typically invests approximately 85% of its assets in high-quality, lower-duration US Treasuries and Agency securities which provide the portfolio with stability and income.

The remaining 15% of the fund’s assets are dedicated to the options overlay which typically involves selling short-term call options on the S&P 500. When sold, the call options will generally be 2%-7% out of the money. A quarter of the options overlay will on average be rolled on a weekly basis.

Collectively, the ETF is designed to provide attractive income that is mostly uncorrelated with traditional sources of yield while maintaining low duration and credit risk. The fund makes distributions to investors on a monthly basis.

Aptus now offers five ETFs collectively housing more than $2 billion in assets. The firm’s line-up includes a range of sophisticated options-based strategies that are designed to enhance income, pursue upside potential, or manage drawdown risk.

JD Gardner, Founder and Portfolio Manager at Aptus Capital Advisors, said: “Our Drawdown Patrol strategies have been a compelling solution for many advisors as they look to meet client needs in an unsettled rate environment. We’re proud to have helped advisors help clients over the past six years and are excited to now offer a true income strategy not reliant on long duration or sketchy credit.”