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SCEP ETF — Holdings & Analysis

The Sterling Capital Hedged Equity Premium Income ETF (SCEP) is an actively managed equity ETF with $0.21 billion in assets under management. SCEP differentiates itself through a system-driven, bottom-up research approach, enhanced by AI-driven predictions of volatility and an options overlay strategy. With an expense ratio of 0.65%, the fund seeks to generate income and mitigate risk by writing out-of-the-money call options and employing protective put option strategies, while also considering ESG factors in stock selection.

Sterling Capital Hedged Equity Premium Income ETF (SCEP) ETF — Price, Holdings & Analysis

The Sterling Capital Hedged Equity Premium Income ETF (SCEP) is an actively managed equity ETF with $0.21 billion in assets under management. SCEP differentiates itself through a system-driven, bottom-up research approach, enhanced by AI-driven predictions of volatility and an options overlay strategy. With an expense ratio of 0.65%, the fund seeks to generate income and mitigate risk by writing out-of-the-money call options and employing protective put option strategies, while also considering ESG factors in stock selection.

ETF Overview

SCEP actively manages a portfolio of US large- and mid-cap equities with an options overlay strategy. The fund employs a system-driven, bottom-up research approach in evaluating investments. It uses quantitative measures and valuation, such as AI-driven predictions of volatility, earnings and dividend growth, as well as traditional factors (earnings growth, momentum, relative price strength, value, size, quality). Stock selection focuses on companies with strong capital growth prospects and may emphasize sustainable dividend yield and quality, with consideration to ESG factors. To generate income and mitigate risk, SCEP uses an option overlay strategy, writing out-of-the-money call options on up to 100% of the portfolio. For downside risk mitigation and capital preservation, it applies protective put option strategies.
SCEP aims to provide investors with exposure to US large- and mid-cap equities while generating income and mitigating risk through an options overlay strategy. The fund employs a system-driven, bottom-up research approach, leveraging quantitative measures and valuation, including AI-driven predictions of volatility, earnings, and dividend growth. Stock selection emphasizes companies with strong capital growth prospects, sustainable dividend yield, and quality, with consideration given to ESG factors. The fund's option overlay strategy involves writing out-of-the-money call options on up to 100% of the portfolio to generate income. Additionally, SCEP uses protective put option strategies for downside risk mitigation and capital preservation. The top holdings include companies like Alphabet Inc (GOOGL) at 5.86%, NVIDIA Corp (NVDA) at 5.82%, and Apple Inc (AAPL) at 5.70%. This ETF may appeal to investors seeking a blend of equity exposure, income generation, and downside protection.

Risk Metrics

SCEP's active management and options overlay strategy introduce specific risks. The 0.65% expense ratio can create a drag on returns, especially in a low-return environment. The fund exhibits concentration risk, with its top 10 holdings accounting for a significant portion of the portfolio, including Alphabet Inc (GOOGL), NVIDIA Corp (NVDA), and Apple Inc (AAPL). Sector risk is also present, depending on the fund's allocation to specific sectors at any given time. With a beta of 0.00, SCEP's price is not correlated with the market. Investors should carefully consider these factors and their own risk tolerance before investing. Past performance does not guarantee future results.

Expense Ratio

0.65%

Top Holdings

Dividend Yield

0.00%
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Risk Metrics

  • Beta: 0.00

Questions & Answers

What is SCEP and what does it track?

The Sterling Capital Hedged Equity Premium Income ETF (SCEP) is an actively managed ETF that invests in US large- and mid-cap equities. It aims to generate income and mitigate risk through an options overlay strategy, writing out-of-the-money call options and using protective put options. The fund's stock selection process involves a system-driven, bottom-up research approach, incorporating AI-driven predictions and traditional valuation factors, with consideration to ESG factors. SCEP does not track a specific index but rather uses active management to achieve its investment objectives.

What is the expense ratio for SCEP?

The expense ratio for SCEP is 0.65%. This means that for every $10,000 invested in the fund, $65 is used to cover the fund's operating expenses. While this is higher than some passive ETFs, it is important to consider that SCEP is actively managed and employs an options overlay strategy, which typically involves higher costs. The category average expense ratio for equity income ETFs is 0.44%.

What are the top holdings in SCEP?

As of 2026-03-15, the top holdings in SCEP include Alphabet Inc Class A (GOOGL) at 5.86%, NVIDIA Corp (NVDA) at 5.82%, and Apple Inc (AAPL) at 5.70%. Other significant holdings are Microsoft Corp (MSFT) at 4.94% and Amazon.com Inc (AMZN) at 4.22%. These holdings reflect the fund's focus on large-cap companies with strong growth prospects and quality characteristics. The composition of the fund's holdings may change over time due to the active management strategy.

Is SCEP a good long-term investment?

SCEP's suitability as a long-term investment depends on an individual investor's goals, risk tolerance, and investment horizon. The fund's active management and options overlay strategy may provide the potential for income generation and downside protection, but also introduce additional complexity and costs. The fund's expense ratio is 0.65%. Investors should carefully consider these factors and conduct their own due diligence before investing. Past performance does not guarantee future results.

How does SCEP compare to similar ETFs?

SCEP differentiates itself through its AI-enhanced stock selection and options overlay strategy. Compared to other actively managed equity income ETFs, SCEP's expense ratio of 0.65% may be higher than some competitors. The fund's AUM of $0.21 billion places it in the mid-range in terms of size. Investors should compare SCEP's performance, risk metrics, and investment strategy with those of other similar ETFs to determine which fund best aligns with their individual needs and preferences.

Does SCEP pay dividends?

As of 2026-03-15, SCEP has a dividend yield of 0.00%. The fund's primary focus is on generating income through its options overlay strategy rather than relying solely on dividend payouts from its underlying equity holdings. While the fund may distribute income to shareholders, the dividend yield may vary depending on market conditions and the fund's investment performance.