ATCL REX Autocallable Income ETF

About this ETF

The REX Autocallable Income ETF is an exchange-traded fund designed to generate high monthly income while offering reduced downside risk through exposure to a rules-based index of synthetic autocallable derivatives. It targets a spread of approximately 10% above the Secured Overnight Financing Rate (SOFR), delivering consistent distributions tied to the performance of the Bloomberg US Large Cap VolMax Index, a volatility-targeted equity benchmark that dynamically adjusts exposure to large-cap U.S. stocks to maintain around 40% volatility. The fund employs a pioneering daily laddered portfolio strategy, maintaining 252 to 1,262 autocallable positions added each day, each with a 5-year term, a 1-year non-call period, monthly coupon observations at a 60% barrier (40% downside mitigation), and a principal barrier at 50% for enhanced protection. Coupons are paid monthly if the index stays above barriers, with automatic reinvestment of proceeds for continuous compounding and operational efficiency in an ETF wrapper that provides intraday liquidity, tax-efficient reporting without K-1s, and no fixed maturity date. This structure diversifies timing risk, contrasts with traditional single-issuance autocallables, and links returns via total return swaps, exposing investors primarily to U.S. large-cap equities with structured barriers in the income-focused segment of financial markets.