#United States #Denver #Shelton Capital #Equity ETF #Income Strategy

Shelton Capital Management Launches Equity Premium Income ETF (SEPI)

On September 8, 2025, Shelton Capital Management, a multi-strategy asset manager renowned for its extensive asset management experience with over $6 billion in assets under management (AUM), announced the launch of its Equity Premium Income ETF, known as SEPI. This ETF is now traded on the NYSE and is accessible to investors through various major Registered Investment Advisor (RIA) custodians.

The primary objective of the SEPI is to provide a dynamic investment solution for income-oriented investors. Stephen Rogers, CEO of Shelton Capital, emphasized that this ETF distinguishes itself by opting to sell call options on specific equities rather than relying on synthetic notes or general index options. The strategy is built upon the same foundational research and management methodologies as Shelton's esteemed Overall Morningstar 5-star Flagship Mutual Fund, EQTIX.

According to Shelton Capital, the ETF leverages nearly two decades of expertise in crafting successful covered call strategies. This expertise is aimed at developing a robust investment vehicle tailored for those looking for income generation. SEPI's design encapsulates a blend of capital appreciation and reliable cash flow, achieved through the combination of dividends alongside option premiums accrued from writing call options on individual large-cap stocks.

Product Highlights and Features

Innovative Cash Flow Generation

SEPI is crafted to enhance cash flow generation for its shareholders. By employing covered calls and/or selling cash secured puts on portfolio positions, the ETF aims to increase distribution rates effectively. This approach allows for a more tailored and potentially higher income flow compared to static income funds.

Active Management Approach

The ETF utilizes an active management strategy where equity selection is undertaken with caution, focusing on upside opportunities. Selling covered calls on individual stocks instead of on market indices promotes sector diversification while maintaining compelling risk/reward profiles.

Professional Options Management

With a long-standing proficiency in covered call strategies, Shelton's team engages in managing these options actively, making SEPI a unique contender in the ETF market. It promises to deliver not just static income but engages with market dynamics actively, adjusting to fluctuating market conditions.

The demand for derivative-based ETFs have surged dramatically in the past few years, with Morningstar’s Derivative Income category growing from a mere $1 billion in assets in 2018 to an overwhelming $100 billion. Barry Martin, CFA, Senior Portfolio Manager for SEPI, pointed out that SEPI is designed especially for investors desiring more than just an ordinary income fund. The distinct strategy of actively managing covered calls offers a nuanced cash flow while still allowing for adjustments in response to a changing market environment.

Moreover, SEPI maintains the advantages of an ETF, which include real-time pricing, low investment minimums, and the ability for intraday trading – features that standard mutual funds typically don’t provide.

About Shelton Capital Management

Shelton Capital Management, founded in 1985, is a boutique investment firm dedicated to helping investors achieve financial goals through customized investment solutions complemented with attentive customer service. The firm's strategy spans mutual funds, ETFs, and separately managed accounts tailored toward clients of wealth managers, retirement plans, and individuals alike. As of the end of August 2025, they manage over $6 billion across various portfolios that include fixed income, U.S. equity, international strategies, ESG solutions, and equity income products leveraging options expertise.

With a slew of awards conferred by respected organizations such as Morningstar and Lipper, the company continues innovating while adding skilled professionals to expand its institutional prowess. Shelton is based in Denver, Colorado, but also has a presence in San Francisco, further broadening its outreach and capabilities. For more details, visit www.sheltoncap.com.

Important Considerations

An investor must thoroughly consider the investment objectives, associated risks, fees, and expenses related to the Fund before making any investment decisions. Comprehensive prospectus information regarding the Shelton Equity Premium Income ETF can be obtained via direct contact with Shelton Funds. As always, those interested in ETF investments must be mindful that while they present opportunities for returns, they also carry the risk of principal loss, especially given market volatilities.

In conclusion, the launch of the Shelton Equity Premium Income ETF (SEPI) establishes a significant milestone in the landscape of income-generating investment strategies, tailored for today’s sophisticated investors seeking strategic cash flow solutions.