New ETF Packages Tech Giants With Daily Options Income at 0.88% Fee

TappAlpha, operating as Tapp Finance, has launched the TappAlpha Cboe Magnificent 10 Growth & Daily Income ETF under the ticker TMGN on the Cboe BZX Exchange. The fund is built around the Cboe Magnificent 10 Index, an equal-weighted basket of ten large-cap U.S.-listed technology and growth stocks with listed options. Current members are NVIDIA, Microsoft, Apple, Amazon, Alphabet, Meta, Tesla, Broadcom, AMD, and Palantir. The index is rebalanced monthly and reviewed quarterly. TMGN charges a 0.88% management fee—listed in the prospectus as total annual operating expenses—which works out to $88 annually on a $10,000 investment.

The fund's income mechanism is a daily covered-call overlay. Each trading day, TMGN writes out-of-the-money call options that expire the same day, known as 0DTE contracts. The fund collects a premium for each option sold. According to the prospectus, the adviser views this daily strategy as offering "higher income potential and a more stable income level in volatile markets" compared to a monthly cycle. The prospectus also permits weekly options, put spreads, or multi-leg defensive strategies during periods of heightened volatility. The core trade-off is explicit: writing calls caps upside gains, and the prospectus states plainly that the strategy "will limit the Fund's participation in gains" above the strike prices.

TMGN competes against existing covered-call ETFs on mega-cap tech. YieldMax's Magnificent 7 covered-call fund runs a similar playbook on the original seven mega-caps but charges a 1.34% expense ratio, well above TMGN's 0.88%. Roundhill's Magnificent 7 ETF offers plain vanilla exposure without an income overlay at a lower fee, while Defiance's 0DTE income fund runs a similar daily options strategy on the broader Nasdaq-100. TMGN's differentiation is threefold: broader membership (adding AMD and Palantir to the standard seven), daily rather than monthly options execution, and the combined package at a competitive 0.88% fee.

The fund carries notable risks. TMGN has no live track record, leaving investors with nothing to evaluate yet. New ETFs often trade with wide bid-ask spreads until they gather sufficient assets, and small funds sometimes close if growth stalls. Distributions are monthly (not daily), and the prospectus warns that payouts "may include a return of capital" and are not guaranteed in any given month. Covered-call strategies historically underperform in strong bull markets; if the basket rallies sharply, TMGN will trail a straight long position. Concentration risk is real: while the Magnificent 10 has often traded as one AI theme, year-to-date price moves through July 16 show dramatic dispersion—AMD up 133.91%, Apple up 22.81%, Alphabet up 13.39%, NVIDIA up 11.34%, Broadcom up 8.59%, Amazon up 8.26%, and Meta up 0.85%, while Microsoft is down 16.69%, Tesla down 13.04%, and Palantir down 24.37%. For comparison, the Invesco QQQ Trust is up 14.92% year-to-date. Key metrics to watch include how quickly TMGN gathers assets, what its first monthly distributions reveal once declared, and whether the daily 0DTE overlay sustains its income-generation promise during upcoming earnings seasons for these mega-caps.

TMGN enters a crowded field of AI-focused ETFs by combining two specific investor demands: exposure to the ten largest U.S. tech stocks and regular income through options premiums. The daily 0DTE overlay is the fund's claimed innovation; whereas YieldMax's Magnificent 7 covered-call fund runs monthly cycles at a 1.34% expense ratio, TMGN's 0.88% fee and daily options mechanics attempt to offer "higher income potential and more stable income level in volatile markets," according to the prospectus. However, the trade-off is familiar: capping upside participation. This structure appeals squarely to income-focused accounts willing to accept that ceiling, not to growth-oriented investors betting on a strong rally in mega-cap tech. The fund's equal-weighting of the ten holdings—placing smaller names like Palantir on the same footing as NVIDIA—also introduces concentration risk that the substantial year-to-date dispersion (AMD +133.91%, Palantir −24.37% through July 16) makes concrete rather than theoretical.