At a glance
KHPI charges 0.98% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $401.5M in assets, the 8th largest of that group; it paid 8.81% of its price in distributions over the past 12 months, monthly. Over the past year it returned +9.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
Kensington Hedged Premium Income ETF (KHPI) is an actively managed fund that holds the Vanguard S&P 500 ETF (VOO) and trades S&P 500 options on top. It sells monthly call spreads for income and buys quarterly put spreads for partial protection against large drops. Its trailing yield was 8.81% as of October 27, 2026, paid monthly. Its 0.98% expense ratio is above the 0.86% average of comparable buffer ETFs.
Price history
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KHPI +9.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KHPI official prospectus, to Dec 31, 2025 | — | +11.30% | — | — | — | +11.58% |
| KHPI price data to Oct 27, 2026 | +9.3% | +9.2% | — | — | — | +11.6% |
- Over the year to Oct 27, 2026, KHPI returned +9.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.1%); its best was 2025 (+11.1%).
- The deepest fall in its price history was 10.6% (Jan 23, 2025 to Apr 4, 2025), recovered by Jun 12, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.3% | — |
| 2025 | +11.1% | +11.30% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7300 | |
| 2025 | $2.2700 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 100.06% of assets.
| Fund held | Weight | |
|---|---|---|
| Vanguard S&P 500 ETF | 100.06% |
By country
United States 100.06%By asset type
Stocks 100.06%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $54.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +6.57%, +2.70%, -0.12%.
How it works
KHPI does not track an index. It buys one or more low-cost ETFs that track the S&P 500. As of June 30, 2026, essentially all of its assets sat in the Vanguard S&P 500 ETF (VOO). It follows a method similar to the MerQube Hedged Premium Income Index, which holds fixed option spreads until they expire. KHPI's sub-adviser instead chooses which ETFs and options to use, and may adjust or close positions early.
Each month, the fund sells S&P 500 call options and collects a premium. That is cash paid by a buyer for the right to buy at a set strike price. Sold strikes typically sit at about 98–105% of the index level. The fund also buys calls at about 101–110% to limit losses if the market surges. The prospectus says losses on these call spreads are typically capped at about 3% after their income. The result is extra income in flat or falling markets but weaker returns in strong rallies.
Each quarter, the fund buys put options, which gain value when the market falls, and sells lower-strike puts to cut the cost. As of June 30, 2026, it owned a September 18, 2026 put at 7,125.55 and had sold one at 6,000.46. That protection covered only the drop between those two levels. Because it owns VOO, it also pays that fund's fees.
What it really costs
- KHPI charges 0.98% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.95% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $100 in the first year and $1,201 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KHPI | $100 | $312 | $542 | $1,201 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
KHPI turns S&P 500 exposure into monthly payouts, mainly from selling options, and gives up some upside in return.
KHPI's main draw is its monthly income. Its trailing 12-month yield was 8.81%, or $2.31 per share, as of October 27, 2026. Much of that comes from option premiums, which are usually taxed as ordinary income rather than as qualified dividends. The fund launched in September 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 11.3%. Its deepest drop was 10.6%, from January 23 to April 4, 2025, and it recovered by June 12, 2025, about 2.3 months later. Its put spreads cover only part of a crash. A retiree selling shares in a deep bear market could still take real losses.
Costs are high at 0.98% a year. In the SEC's standard example, $10,000 would cost about $1,201 over 10 years. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income tied to the S&P 500, with a trailing yield of 8.81% as of October 27, 2026.
- Holders willing to give up some gains in strong rallies in exchange for option income and partial protection against large S&P 500 declines.
- Investors comfortable with a sub-adviser actively adjusting option positions instead of following a fixed index rule.
Look elsewhere if
- Cost-focused investors: its 0.98% expense ratio is the highest of eight buffer-style funds compared, which average 0.86%.
- Those who want a long track record: it launched in September 2024 and has never been through a major bear market.
- Taxable-account investors seeking qualified dividends, since option income is usually taxed as ordinary income.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KHPI this fund | 0.98% | $401.5M | +9.2% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does KHPI pay monthly dividends?
Yes. KHPI pays distributions monthly. Over the 12 months to October 27, 2026, it paid $2.31 per share, a trailing yield of 8.81%. Much of that income comes from premiums the fund collects by selling S&P 500 call options, not from stock dividends. Option income is usually taxed as ordinary income rather than at the lower qualified-dividend rate. That can matter for investors who hold the fund in a taxable account.
What does KHPI hold?
KHPI holds an S&P 500 ETF plus a small set of options. As of June 30, 2026, essentially all of its $401 million in net assets was in the Vanguard S&P 500 ETF (VOO). It also held four S&P 500 option positions: a sold and a bought call expiring July 17, 2026, and a bought and a sold put expiring September 18, 2026. So it is a fund of funds, and its stock exposure is VOO's.
Does KHPI protect against a stock market crash?
Only partly. Each quarter, KHPI buys put options that gain value when the S&P 500 falls and sells lower puts to cut the cost. Protection covers only the range between those strikes, and losses past the lower strike are not cushioned. Its deepest drop was 10.6%, from January 23 to April 4, 2025. Its beta was 0.5 over the year to October 27, 2026, meaning it moved about half as much as the market.
What's the difference between KHPI and BUFR?
Both use S&P 500 options, but they work differently. BUFR, the FT Vest Laddered Buffer ETF, is a defined-outcome buffer fund. KHPI aims for monthly income and has no set buffer or cap. BUFR charges 0.95% against KHPI's 0.98%. It returned 11.6% over the year to October 27, 2026, compared with 9.2% for KHPI. BUFR is also far larger, with $10.5 billion in net assets as of August 31, 2026.
How much does KHPI cost to own?
KHPI's expense ratio is 0.98% a year, including a 0.95% management fee, according to its prospectus filed April 29, 2026. In the SEC's standard example, $10,000 earning 5% a year would cost about $100 after one year, $542 after five years and $1,201 after ten years. Because it owns VOO, it also pays that fund's fees. Its cost ranks highest of eight buffer-style funds compared, which average 0.86%.