HOII

About HOII

The REX HOOD Growth & Income ETF is an exchange-traded fund that provides targeted exposure to the performance of Robinhood Markets, Inc. through a combination of leveraged equity participation and an income strategy rooted in options. Its primary function is to pay weekly distributions while simultaneously seeking daily results that are 1.05x to 1.50x the daily percentage change of Robinhood’s stock price, achieved via synthetic instruments such as swaps and options, rather than direct stock ownership. Approximately half of the fund’s notional exposure is used to sell out-of-the-money call options, generating option premium income that is distributed weekly, while the other half remains uncapped, preserving growth potential if the underlying stock appreciates. This structure distinguishes the fund from traditional covered call ETFs, which typically cap all upside. The ETF is designed for sophisticated investors who regularly monitor their portfolios and understand the unique risks of leveraged and derivative-based strategies, including the potential for losses even if the underlying stock increases over longer periods, due to compounding and volatility effects. The REX HOOD Growth & Income ETF represents an innovative financial product, blending partial uncapped equity exposure with recurring income, and plays a role in serving income-focused participants seeking alternatives to conventional income or covered call strategies.