Skip to content
Beacon

SPYTDefiance S&P 500 Target Income

Get income2y track recordRanked #979 of 1,650 in this goal

Seeks current income and exposure to the performance of the S&P 500 Index.

By Defiance ETFs LLC · Launched 2024

Annual Cost

0.92%

#4,757 of 5,854 · expensive

Fund Size

$154M

#2,588 of 5,854 · mid-size

Dividend YieldGoal

14.56%

Track Record

2 years

#3,375 of 5,854 · seasoned

Performance

Total-return NAV · USD
Growth of $10,000
$11,626+16.3%

Total-return NAV, USD. Net of fund fees, before tax.

What's inside

How Beacon categorizes this fund

Asset class

Alternative

Region

North america

Strategy

Option income

Index tracked

S&P 500 Index

What it actually holds

By weight

Concentration

Top 3 holdings = 99.6% of fundconcentrated

iShares Core S&P 500 ETF
99.6%
N/A
0.0%
N/A
0.0%

Asset allocation

Stocks
97.8%
Other
3.3%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
11.8%Moderate

Year-on-year price swings

Max drawdown
-18.3%Moderate

Worst peak-to-trough loss

Sharpe (3Y)
Unavailable

Needs 3+ years of history

Sortino (3Y)
Not yet

Needs 3+ years of history

Listing

Exchange
NYSE Arca

Full fund details

Objective
Seeks current income and exposure to the performance of the S&P 500 Index.
Strategy
Actively manages an ETF to generate current income by holding shares of unaffiliated passively managed ETFs and selling daily credit call spreads on the S&P 500 Index. The strategy aims for consistent distribution levels primarily from options premiums, targeting an annual cash distribution of approximately 20% of net asset value.
Inception date
March 4, 2024
Fund family
Defiance ETFs LLC

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

The big yield isn't extra money

The headline distribution comes from selling call options, which caps the fund's upside. Across a full market cycle that trade costs more than it brings in — often 1 to 3 percentage points a year against just holding the index. Monthly payouts make the gap easy to miss on a return summary.

Sources: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

What's next?

You've looked at SPYT. Save it to your watchlist to weigh it against other funds, then turn your shortlist into a portfolio.

See other funds for this goal

Data updated on 2026-08-03