Kensington Hedged Premium Income ETF (KHPI)

Kensington Hedged Premium Income ETF (KHPI) is an exchange-traded fund in the Derivative Income category. It has $401.46M in assets, an expense ratio of 0.98% and a 4.65% dividend yield. In implementing its strategy, the manager employs a methodology similar the MerQube Hedged Premium Income Index (the “MQKHPI”). The MQKHPI is designed to be 100% invested in the Vanguard S&P 500 ETF (VOO) while selling 1-Month call options and purchasing 3-Month put options on the SPDR S&P 500 ETF (SPY). The MQKHPI aims to generate income from selling call spreads while providing downside protection through the purchase of put spreads, maintaining exposure to the U.S. large-cap equity market. T…