How Exchange Rates Affect Income Options ETP Returns

IncomeShares exchange-traded products (ETPs) trade in Europe and the UK, but they hold US-listed assets and sell US options. That means exchange rate moves may affect investor returns in pounds and euros. This article explains how that works with the options income paid to investors and the total return.

How exchange rates affect options income paid to investors

IncomeShares ETPs sell options on a range of US assets like the Nvidia, gold, and US Treasury bonds. When an ETP sells an option, the buyer pays a premium in US dollars. That premium forms part of the income the ETP may pay to investors each month.

When the dollar gets stronger, the same premium translates into more pounds or euros (all else being equal). And when the dollar gets weaker, it’s the opposite: the same premium translates into less value in those currencies.

Here’s an example to explain how it works. The Palantir Options ETP (PLTY) paid investors $1.9448 per share for August 2025. The fund declaration date was on 29 August – that’s when the ETP announced the income payout amount in US dollars. But the payment date comes later – in this case 10 September. That’s when the ETP actually paid the distribution in US dollars.

To show the effect of exchange rates, let’s assume GBPUSD was 1.35 on 10 September. In that case, the $1.9448 payout would be about £1.44 per share ($1.9448 divided by 1.35).

Now assume the dollar was stronger on that day (GBPUSD 1.33). That would mean relatively more income in pounds (roughly £1.46 per share). And if the dollar was weaker (GBPUSD 1.37), the UK investor would get less income in pounds (about £1.42 per share).

How exchange rates affect price return of ETPs

IncomeShares ETPs also offer investors exposure to the underlying US investments they hold. And if those investments increase (or decrease) in price, the ETP’s net asset value (NAV) can also increase (or decrease). For UK and European investors, exchange rate movements add another factor to that equation.

If the dollar gets stronger, the ETP’s NAV drops in pounds and euros (other things held equal). The opposite is true if the dollar gets weaker.

For example, the IncomeShares Gold+ Yield Options ETP (GLDI) had a net asset value of $13.33 on 16 September, 2025. If GBPUSD was 1.35 that day, the ETP’s NAV per share would be worth about £9.86 in pounds. A stronger dollar (GBPUSD 1.33) would result in a higher NAV value in pounds (about £10 even). If the dollar were weaker (GBPUSD 1.37), the NAV per share would be lower in pounds (£9.73).

Note: Total return combines both the income investors receive and the changes in NAV. Because both are in dollars, exchange rates can affect the final return investors see in pounds or euros.

IncomeShares offers ETPs in USD, GBP, and EUR

IncomeShares ETPs trade in three currencies: USD, GBP, and EUR. UK investors may consider the USD or GBP listings on the London Stock Exchange. European investors may opt for the EUR listing on Xetra. All three listings hold the same US dollar assets, and follow the same US dollar options strategies.

 Key takeaways

• IncomeShares ETPs collect option premiums in US dollars, and exchange rates change the value investors receive in pounds or euros.

• IncomeShares ETPs hold US-listed assets. All else equal, a stronger dollar may increase the value of those investments in pounds or euros (and vice versa).

• Total return combines both the income investors receive and the changes in NAV. Exchange rates affect both for European and UK investors.