What 154 Investors Told Us in the IncomeShares Survey

We recently ran the first IncomeShares investor survey to ask our community how they think about options income ETPs (exchange-traded products). In total, 154 investors answered anonymously between 29 July and 5 August. The survey covered how they choose ETPs and which yields look credible. It also asked which asset classes they'd like future ETPs to cover. This article breaks down the results.

How investors choose options income ETPs

More than half of the investors surveyed check total return first when choosing an options income ETP. Total return is the ETP's price change plus its income reinvested. Only 8% start with the distribution yield. It takes the latest monthly payout per share and divides it by the net asset value (NAV) per share. It then multiplies that figure by 12 to get the annualised yield. Only 1% of respondents look at fees first before making a decision.

Investors were just as clear on risk. 61% want a balance of income and price stability, while only 8% would chase the highest income on offer. Another 25% would accept lower income in exchange for smaller swings in the ETP's share price.

We also asked our investors when a yield starts to look “too good to be true.” A third said above 20% a year. A quarter said there's no set level – it depends on the underlying asset of the ETP and the strategy.

Just over half of the respondents would let monthly income move with the market, rather than target a set range. Our ETPs aim to earn income by selling options and collecting an upfront fee called a premium. Options premiums can change with market conditions, which means monthly income can change too. Our Gold+ Yield, Silver+ Yield, and TLT options ETPs aim to pay about 1% per month. Any extra income they earn stays in the fund. Our put-selling ETPs have paid out the premiums they collect, so their income has moved with the market.

What investors want us to launch next

International (non-US) stock indices came first, picked by 31% of investors – Nikkei, DAX, or FTSE 100, for example. Emerging market indices followed at 18%, with European stocks in third place at 16%. A separate written question drew 108 suggestions, with world index requests leading there too. We read every answer, and the results will feed into our research on potential future launches.

Who took the survey

Germany led at 38% of respondents, followed by Italy at 22%, and the UK at 18%. Nine in ten respondents described themselves as retail investors, matching the community we've built across Europe.

Broker access also looks healthy. 69% of investors said they can buy our ETPs easily, while 28% can only buy some of them. Just 2% said their broker doesn't offer them at all.

Key highlights

• 54% of respondents check total return first when choosing an options income ETP – only 8% start with distribution yield.

• A third of the respondents say a yield above 20% a year starts to look too good to be true. A quarter say it depends on the underlying asset and strategy.

• International stock indices came first for new launches at 31%, and Germany was our largest respondent base at 38%.