REX TSLA Growth & Income ETF Declares $0.2728 Weekly Distribution
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
tsla-etfcovered-call-etf
Fazen Markets Editorial Desk
Collective editorial team · methodology
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The REX TSLA Growth & Income ETF announced a weekly distribution of $0.2728 per share on 27 May 2026. The payment applies to shareholders of record as of 3 June 2026, with a payable date set for 10 June 2026. This declaration continues the fund's strategy of providing regular income derived from a portfolio of Tesla stock and options. The announcement was reported by SeekingAlpha.
The distribution arrives as investors seek yield enhancement in a market where the S&P 500's dividend yield hovers near 1.4%. Income-focused strategies have gained prominence following the Federal Reserve's pause on interest rate hikes, pushing investors toward equity-based income solutions. The REX TSLA ETF, which employs a covered call strategy on its underlying Tesla holdings, is designed to generate premium income, making its weekly payouts a key performance indicator. The fund's ability to sustain or grow these distributions is closely watched as a barometer of options market volatility and the income-generating capacity of single-stock ETFs.
This payout follows a previous distribution of $0.2710 per share declared on 20 May 2026. The slight increase of $0.0018 week-over-week suggests stable to slightly improved options premium collection. The fund has maintained a consistent weekly distribution schedule since its inception, differentiating it from traditional quarterly dividend stocks. This consistency appeals to investors requiring regular cash flow from their portfolios.
The declared distribution of $0.2728 per share represents an annualized yield of approximately 15.2%, based on the ETF's net asset value of approximately $93.50 at the time of announcement. This yield significantly surpasses the average for equity income ETFs, which typically range between 7-12%. The fund's strategy involves writing call options on a significant portion of its Tesla holdings, targeting incremental income from option premiums.
| Metric | REX TSLA ETF | S&P 500 Index |
|---|---|---|
| Annualized Distribution Yield | ~15.2% | ~1.4% |
| Payment Frequency | Weekly | Quarterly |
| Primary Strategy | Covered Calls | Broad Diversification |
The ETF's net assets have grown to over $450 million, reflecting increased investor interest in thematic, high-income vehicles. For comparison, Tesla's stock itself offers no dividend, making the ETF's yield entirely a function of its options overlay strategy. The fund's expense ratio is 0.75%, which is deducted from the income generated before distributions are calculated.
The sustained distribution supports the thesis that single-stock covered-call ETFs can be viable tools for income generation, particularly around high-volatility names like Tesla. This may benefit other issuers of similar products, such as the AXS TSLA Bear Daily ETF or funds tracking other megacap tech stocks, by validating the product structure. Increased flows into such strategies could increase options trading volume on underlying stocks, potentially adding to implied volatility.
A key risk is that the high yield is partially a function of Tesla's own elevated volatility. A prolonged period of low volatility in the underlying stock could compress the premiums the fund collects, potentially forcing a reduction in future distributions. The strategy also caps upside participation during sharp rallies in Tesla's share price. Current positioning data indicates institutional investors are the primary holders of the ETF, using it as a satellite income component within broader portfolios.
Tesla's second-quarter earnings report, expected in late July 2026, is the next major catalyst. The stock's price reaction will directly influence the premiums available for the fund's covered call writes. A significant earnings beat or miss could widen the volatility skew, impacting future income potential. Investors should monitor the CBOE Volatility Index for Tesla options as a leading indicator for distribution sustainability.
The $90 level in the ETF's net asset value represents a key technical support, a break below which could signal erosion in the capital base supporting the distributions. Regulatory scrutiny on complex single-stock ETFs remains a wildcard; any proposed rule changes from the SEC could impact the fund's operations. The Federal Open Market Committee meeting on 24 June 2026 will be critical for overall interest rate sentiment, influencing the relative attractiveness of all yield-producing assets.
The ETF holds shares of Tesla and simultaneously sells (writes) call options against those holdings. The premiums collected from selling these options are the primary source of the fund's distributions. This is a classic covered call strategy, amplified by the fact that Tesla stock is known for its high volatility, which translates into higher options premiums. The yield is not a traditional dividend from company profits.
The primary risk is capped upside. If Tesla's stock price surges past the strike price of the call options sold, the fund will not participate in gains beyond that point. Conversely, the fund fully participates in any decline in Tesla's share price. The distributions are also not guaranteed and can fluctuate based on options market conditions. The fund's high yield partially compensates investors for these risks.
This distribution is mechanically different. Traditional automakers like Ford or General Motors pay dividends from their corporate earnings. The REX TSLA ETF's payout is generated from financial engineering via options trading. While Ford's dividend yield is around 4-5%, the REX ETF's yield is over 15%, reflecting the significantly higher risk and different income generation method.
The REX TSLA ETF's weekly payout underscores the demand for high-yield strategies built around volatile single stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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