SpaceX shares are in turbulent times, but this ETF aims to generate income for investors

The long-awaited launch of Elon Musk 's SpaceX also spawned a host of new ETFs in its wake, including a new offering that aims to generate income for investors. The Kurv SpaceX Enhanced Income ETF (XSHP) began trading last Wednesday, making it the first covered-call ETF playing on the SpaceX theme, according to VettaFi head of research Todd Rosenbluth. "In my 20 years covering the ETF market, I have seen no new stock listing create an impact quite like SpaceX," Rosenbluth said. "While we saw several firms launch spot bitcoin ETFs simultaneously, the introduction of leveraged and enhanced income ETFs for SpaceX has occurred much faster – within just one week of the initial listing." Income from a volatile stock Kurv has a suite of single-stock income ETFs, including its Yield Premium Strategy Amazon ETF (AMZP) and Yield Premium Strategy Tesla ETF (TSLP) . The firm's SpaceX income fund has a long exposure to the stock and uses a call spread – a variation of the covered call strategy – to generate income, according to Howard Chan, Kurv founder and CEO. A call option gives the holder the right to buy a stock at a specified price, known as a strike price, by a certain date. With the call spread strategy in this ETF, a call is sold to generate premium at a stated price, and another call option is bought at the same time at a higher strike price to capture potential upside. …