Infrastructure Capital launches SPYC, S&P 500 option-income ETF

HANetf and Infrastructure Capital Advisors have launched the Infrastructure Capital S&P 500 Option Income UCITS ETF (ticker SPYC). The fund carries a total expense ratio of 0.80% and is offered under the UCITS framework.

SPYC pairs an actively constructed S&P 500 equity sleeve with a flexible covered-call overlay. The fund seeks monthly income from option premiums while retaining potential for capital growth in its stock holdings.

Infrastructure Capital builds the equity portfolio using quantitative, qualitative and relative-value analysis. The manager evaluates metrics such as price-to-earnings, price-to-book, profitability and price-to-cash-flow and may over- or underweight companies rather than following market-capitalisation weights.

On the options side, SPYC can write shorter-dated call options selectively on individual holdings or on the S&P 500 Index. The manager can change how much of the portfolio is covered, and can vary strike prices and expiries to capture option premiums where implied volatility is higher or names are considered overvalued.

Premiums received from writing options are intended to fund monthly distributions. The equity sleeve continues to target capital appreciation.

Jay Hatfield, CEO and CIO of Infrastructure Capital Advisors, described the product as: “built to monetise the increased volatility we’ve seen across S&P 500 listed companies through active options strategies while maintaining the careful and pragmatic approach to portfolio and product construction that Infrastructure Capital has become well known for.”

Hector McNeil, co-founder and co-CEO of HANetf, added: “SPYC brings a differentiated approach to options-income investing by combining active S&P 500 stock selection with a flexible covered-call strategy. This gives investors access to a strategy that seeks to generate monthly income while retaining the potential for capital growth.”

The ETF differs from strategies that write index call options on a fixed schedule, which can limit upside participation when markets rise above option strikes. SPYC’s selective stock weights and adjustable overlay provide choices on which names to cover and when.

The fund is available to European investors under UCITS and is positioned for those seeking regular option income while maintaining exposure to S&P 500 equities.