NYSE:WEEL

Peerless Option Income Wheel

The first-ever ETF that offers turnkey access to the popular Option Wheel investment strategy.

Investment Objective

The investment objective is to seek current income. The Peerless Option Income Wheel is an actively managed alternative income solution.  Through a dynamic patent pending combination of secured put writing and covered-call writing, the investment objective of WEEL is to generate equity-like returns over the long term through income generation with less overall volatility than the major equity indexes. 

Fund Documents

WEEL ETF Fund Summary

The WEEL ETF has engineered a strategic approach designed to deliver equity-like returns over the long term through income generation, while dampening volatility as compared with a traditional long only portfolio.  Its aim is to achieve these returns independently of market index appreciation, combining the risk management benefits of buffer-style products with the income potential of a premium selling strategy. 

The fund adopts a disciplined, mechanical methodology that assists in buying low and selling high, while continuously collecting income with excellent capital efficiency.  Abstaining from making market predictions, market timing, or favoring specific sectors are inherent features.  It remains neutral in its approach to market trends, bullish or bearish sentiments, and value versus growth styles.  It removes emotion, and provides a sustainable, risk-managed solution to create excess returns in range-bound markets.

Through our crafted process, we aim to simulate broad market exposure on a notional basis by means of cash (or treasury) secured puts.  WEEL predominantly allocates across sector ETFs but can also utilize individual securities if these products do not provide the fund’s target achievement.  All short put positions maintain a tight time frame, enabling frequent resets of the buffer to control downside risk.  Any position that is ‘put’ to the portfolio becomes a long covered call contender, until that position itself is called away.

WEEL offers investors a sophisticated approach to achieving broad market exposure while effectively managing risk and providing income.  

Strategy Overview

Jessica Inskip

Options Educator & Commentator; Co-Founder of the Market MakeHer Podcast

Jessica's Bio

Peerless WEEL Strategy

Market Performance after Periods of High P/E

The Wheel In Motion

This patent-pending process is performed independently on a diversified basket of primarily sector ETFs.  Each secured put is written out-of-the money, providing a buffer against potential losses while creating income.  If assigned, covered calls are written on the position to create more income until it rebounds back.  In bear markets, the majority (possibly all) of the positions will likely be assigned and the fund resembles a diversified equity allocation across sectors and market capitalization.  This is an income strategy, and the vast majority (if not all) of the return will come from income generation rather than share price growth.

This patent-pending process is performed independently on a diversified basket of primarily sector ETFs.  Each secured put is written out-of-the money, providing a buffer against potential losses while creating income.  If assigned, covered calls are written on the position to create more income until it rebounds back.  In bear markets, the majority (possibly all) of the positions will likely be assigned and the fund resembles a diversified equity allocation across sectors and market capitalization.  This is an income strategy, and the vast majority (if not all) of the return will come from income generation rather than share price growth.

Peerless Wealth and Peerless ETFs

Peerless Wealth, LLC is an SEC-registered investment advisory firm and investment manager specializing in wealth and investment management for affluent clients. Founder Erik Thompson posits that a considerable number of individual investors, alongside numerous financial advisors, may not allocate sufficient focus towards planning for (and capitalizing on) markets characterized by stagnation, or bounded within a specific range. Over the last few years, he began running the option wheel income generation technique on an account-by-account basis and also in a private hedge fund.  Performance solidified the technique and gave Peerless Wealth the confidence to roll it out to the public via an ETF. Peerless ETFs, a division of Peerless Wealth, LLC, offers the first and only SEC-registered 40-Act fund that utilizes the Option Wheel.

For more information about Peerless Wealth, LLC, please see www.peerless-wealth.com

“What is YOUR strategy for a range-bound market?”

Picture of Erik Thompson

Erik Thompson

Peerless Wealth Founder
Co-Portfolio Manager

Picture of Robert Pascarella, PE

Robert Pascarella, PE

Research & Trading
Co-Portfolio Manager

Rob serves as an IAR at Peerless Wealth. An engineer by trade, he collaborated closely with Erik in the conceptualization and enhancement of their proprietary strategy. Notably, their innovative approach has garnered patent pending status with the US Patent and Trademark Office (USPTO). Leveraging further mathematical and data science background, Rob’s work extended to comprehensive backtesting, where the duo rigorously assessed the efficacy and robustness of their trading strategy across various market conditions. Through meticulous analysis of historical data and simulations, they refined the strategy to ensure its resilience and effectiveness in navigating dynamic market environments. This iterative process underscores their commitment to delivering a sophisticated and adaptive investment solution.

Fund Details

Fund Details

*The 30-Day SEC Yield is calculated with a standardized formula mandated by the SEC. The formula is based on the maximum offering price per share and does not reflect waivers in effect.

**The Net Expense Ratio includes management fees and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 0.99%. The Fund’s investment adviser has contractually agreed to waive 10 basis points (0.10%) of its management fees for the Fund until at least July 29, 2025.

Fund Data & Pricing

**30-Day Median Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.

The Distribution Rate is the annual rate an investor would receive if the most recently declared distribution remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12) and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions are not guaranteed.

Performance

The performance data quoted above represents past performance. Past performance does not guarantee future results. The 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 their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (844) 408-8111.

Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on historical returns. Returns beyond 1 year are annualized.

A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded.

Distribution Detail

Top 10 Holdings

Purchase

Peerless Option Income Wheel ETF (NYSE:WEEL) is available through various channels including via phone (844) 408-8111, broker-dealers, investment advisers, and other financial services firms, including:

This Fund is not affiliated with these financial service firms. Their listing should not be viewed as a recommendation or endorsement.

Peerless Option Income Wheel ETF (NYSE : WEEL) is available through various channels including via phone (844) 408-8111, broker-dealers, investment advisers, and other financial services firms, including:

This Fund is not affiliated with these financial service firms. Their listing should not be viewed as a recommendation or endorsement.

Before investing you should carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus, a copy of which may be obtained by clicking here. Please read the prospectus carefully before you invest.


Fund Risks: An investment in the Fund entails risk. The Fund may not achieve its investment objective and there is a risk that you could lose all of your money invested in the Fund. The Fund is not a complete investment program. It is important that investors closely review all of the risks listed below and understand them before making an investment in the Fund.

Option Wheel Strategy Risk. The implementation of the Fund’s option wheel strategy, which involves cyclically selling put options and then call options on the same underlying assets (i.e., Underlying Issuers), will significantly affect the Fund’s performance in relation to the underlying assets’ price movements. This strategy’s effectiveness depends on the sequence of market movements and option expirations. For instance, if the Fund initiates the strategy by selling out-of-the-money put options and the underlying asset’s price falls below the strike price, the Fund would be obligated to purchase the asset at a potentially unfavorable price. Subsequently, if the Fund sells call options on these assets and their market price rises above the call options’ strike price, the assets would be called away, potentially limiting the Fund’s profit to the premium received.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets including stocks, bonds, commodities, currencies, interest rates, indexes or ETFs that hold or offer exposure to one or more of the foregoing assets. The Fund’s investments in derivatives may pose risks in addition to those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

NAV Erosion Risk Due to Distributions. When the Fund makes a distribution, the Fund’s NAV will typically drop by the amount of the distribution on the related ex-dividend date. The repeated payment of distributions by the Fund, if any, may significantly erode the Fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment.

Underlying ETFs Risks. The Fund will incur higher and duplicative expenses because it holds shares of Underlying ETFs. There is also the risk that the Fund may suffer losses due to the investment practices of the Underlying ETFs.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

The Fund’s investment adviser, Tidal Investments LLC (the “Adviser”), has agreed to reduce its unitary management fee (which includes all expenses incurred by the Fund except for interest charges on any borrowings, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and saleof securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (collectively, the “Excluded Expenses”)) to 0.99% of the Fund’s average daily net assets through at least July 29, 2025. This agreement may be terminated only by, or with the consent of, the Board of Trustees (the “Board”) of Tidal Trust II (the “Trust”), on behalf of the Fund, upon sixty (60) days’ written notice to the Adviser. This Agreement may not be terminated by the Adviser without the consent of the Board. The fee waiver is not subject to recoupment.

Option: The term option refers to a financial instrument that is based on the value of underlying securities such as stocks, indexes, and exchange traded funds (ETFs). An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset.

Call: Call options are financial contracts that give the buyer the right—but not the obligation—to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific period. A call seller must sell the asset if the buyer exercises the call.

Covered Call: The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this, an investor who holds a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor’s long position in the asset is the cover because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.

Put: A put is an options contract that gives the owner the right, but not the obligation, to sell a certain amount of the underlying asset, at a set price within a specific time.

Notional Value: Notional value is a term often used by derivatives traders to refer to the total value of the underlying asset in a contract. It can be the total value of a position, how much value a position controls, or an agreed-upon amount in a contract. Put simply, it is the face value that is used to determine payments on a financial asset. This term is used when describing derivative contracts in the options, futures, forwards, and currency markets.

For a full list of holdings, click here.

Launch & Structure partner: Tidal Financial Group

The funds are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Peerless or Tidal.