At a glance
SCLZ charges 0.79% a year, above the 0.4% average of the 8 funds most like it (the 8th cheapest of 9). It has $19.6M in assets, the 9th largest of that group; it paid 8.2% of its price in distributions over the past 12 months, monthly. Over the past year it returned +10.8% with distributions reinvested (S&P 500: +11.5%), 7th of those 9 funds. Its ten largest positions make up 50.2% of the fund, out of 57 in all.
The short version
Swan Enhanced Dividend Income ETF (SCLZ) is an actively managed fund that picks dividend-paying stocks from the S&P 500 and writes covered call options on them, trading some future gains for upfront income. It pays monthly, with a trailing yield of 8.2% as of October 27, 2026. The drawbacks: a 0.79% expense ratio, about double the 0.40% average of similar funds, and a short record since its February 2024 launch.
Price history
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SCLZ +10.8% 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 | |
|---|---|---|---|---|---|---|
| SCLZ official prospectus, to Dec 31, 2025 | — | +10.92% | — | — | — | +12.38% |
| S&P 500 Total Return Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +17.88% | — | — | — | +19.22% |
| CBOE S&P 500 Buy Write Index index, same period | — | +8.91% | — | — | — | +13.65% |
| SCLZ price data to Oct 27, 2026 | +10.4% | +10.8% | — | — | — | +12.6% |
- Over the year to Oct 27, 2026, SCLZ returned +10.8%, 7th of 9 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 12.6% (Feb 19, 2025 to Apr 8, 2025), recovered by Jul 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.4% | — |
| 2025 | +11.1% | +10.92% |
| 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) | $3.8800 | |
| 2025 | $4.1100 |
What's inside
As of Jun 30, 2026, the fund held 57 securities; the ten largest made up 50.24% of assets.
| Holding | Weight | |
|---|---|---|
| MICRON TECHNOLOGY INC | 7.95% | |
| APPLE INC | 6.20% | |
| NVIDIA CORP | 6.03% | |
| ALPHABET INC | 5.22% | |
| ADVANCED MICRO DEVICES INC | 5.18% | |
| BROADCOM INC | 4.74% | |
| ELI LILLY & COMPANY | 3.88% | |
| AMAZON.COM INC | 3.77% | |
| MICROSOFT CORP | 3.74% | |
| JP MORGAN CHASE & COMPANY | 3.53% | |
| META PLATFORMS INC | 3.36% | |
| BERKSHIRE HATHAWAY INC | 3.12% | |
| CISCO SYSTEMS INC | 3.03% | |
| GE AEROSPACE | 2.76% | |
| JOHNSON & JOHNSON | 2.43% |
By country
United States 99.51%Ireland 1.18%By asset type
Stocks 100.69%By sector
Sectors of the companies held, for the 98.4% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.09%, +3.06%, +0.14%.
How it works
SCLZ, from Swan Global Investments, is actively managed, not tied to an index. Its sub-adviser uses a quantitative (rules-based) screen: each quarter it ranks S&P 500 stocks on past dividend yields, potential price gains and how richly their options have been priced. Low-volatility stocks can be screened out despite good dividends, because their options fetch small premiums. A stock leaves when it exits the S&P 500 or a more attractive one turns up. Normally, at least 80% of assets go into dividend-paying stocks.
The fund writes covered calls on all or part of the portfolio. A call gives its holder the right to purchase a stock at a set strike price until it expires; the fund collects an upfront premium for granting it. Covered means the fund owns the shares. If a stock climbs past the strike, the fund may have to give up the shares at that price, forgoing further gains. Premiums offset losses only by their own amount. The sub-adviser sets exit points, aiming to close out (repurchase) options before shares are called away.
As of June 30, 2026, the fund held 57 stocks and 43 option positions. Micron Technology (7.9%), Apple (6.2%) and Nvidia (6.0%) led the portfolio, and technology was 38.3% of assets. Turnover of 73% means holdings change often.
What it really costs
- SCLZ charges 0.79% a year, versus an average of 0.4% for the similar funds below (8th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SCLZ | $81 | $252 | $439 | $978 |
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.
In a retirement portfolio
Income is the fund's stated objective, and it pays monthly by pairing dividend-paying stocks with premiums from written call options.
SCLZ could add monthly income: it paid $4.62 a share in the year to October 27, 2026, a trailing yield of 8.2%. Option income is usually taxed as ordinary income, not as qualified dividends, which matters in taxable accounts. The 0.79% expense ratio works out to $81 in year one and $978 over 10 years on $10,000, in the SEC's standard example.
Launched February 26, 2024, the fund has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 10.92%. Its deepest drop, 12.6%, ran from February 19 to April 8, 2025; it was back at its peak by July 3, about 2.8 months after the low. Covered calls soften losses only by the premiums collected, and cashing out shares in a slump locks in losses. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income from S&P 500 stocks plus covered-call premiums; the trailing yield was 8.2% as of October 27, 2026.
- Those wanting a gentler ride than the market: its one-year beta was 0.77 as of October 27, 2026, meaning roughly three-quarters of market swings.
- Savers using IRAs or other tax-advantaged accounts, where option income, usually taxed as ordinary income, creates less of a tax drag.
Look elsewhere if
- Cost-conscious investors: the 0.79% expense ratio is second-highest in its nine-fund comparison group; SPDR SSGA US Equity Premium Income ETF (SPIN) charges 0.25%.
- Those seeking full stock-market growth: through December 31, 2025, it averaged 12.38% a year since launch versus 19.22% for the S&P 500 Total Return Index.
- Investors expecting a classic dividend fund: technology was 38.3% of assets, led by Micron, Apple and Nvidia, as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SCLZ this fund | — | 0.79% | $19.6M | +10.8% | — |
| USMC Principal U.S. Mega-Cap ETF · different strategy | 72% | 0.12% | $3.49B | +11.3% | +24.5% |
| TOPT iShares Top 20 U.S. Stocks ETF · different strategy | 65% | 0.2% | $657.2M | +12.2% | — |
| BIGY YieldMax Target 12 Big 50 Option Income ETF | 65% | 0.99% | $54.4M | +8.7% | — |
| SPIN SPDR SSGA US Equity Premium Income ETF | 56% | 0.25% | $46.0M | +8.2% | — |
| HAPI Harbor Human Capital Factor US Large Cap ETF · different strategy | 49% | 0.35% | $490.2M | +12.2% | +24.5% |
| MODL VictoryShares WestEnd U.S. Sector ETF · different strategy | 47% | 0.46% | $1.02B | +11.9% | +23.8% |
| CGDV Capital Group Dividend Value ETF · different strategy | 46% | 0.33% | $38.69B | +15.6% | +23.9% |
Questions investors ask
Does SCLZ pay monthly dividends?
Yes. SCLZ pays distributions monthly. It paid $4.62 a share in the year to October 27, 2026, a trailing yield of 8.2%. The payouts draw on stock dividends and on premiums the fund collects by writing covered call options. Option income is usually taxed as ordinary income rather than as qualified dividends, so after-tax income in a taxable account may be lower. Payouts can vary, since companies may cut dividends and option premiums change with market conditions.
Is SCLZ good for retirement income?
It can provide monthly income, but with trade-offs. Income is the fund's stated objective, and its trailing yield was 8.2% as of October 27, 2026. Writing call options limits gains in strong markets, and the 0.79% expense ratio is about double the 0.40% average of similar funds. The fund launched in February 2024, so it has no record through a long bear market; its deepest drop was 12.6%, from February to April 2025. It is small: $19.6 million in net assets as of June 30, 2026.
What's the difference between SCLZ and BIGY?
The main differences are cost, size and one-year returns. Both funds pair large US stocks with option writing, and their holdings overlapped by about 65% in their latest SEC holdings reports. SCLZ charges 0.79% a year versus 0.99% for YieldMax Target 12 Big 50 Option Income ETF (BIGY), and returned 10.8% versus 8.7% over the year to October 27, 2026. BIGY is larger, with $54.4 million in net assets as of July 31, 2026, against SCLZ's $19.6 million as of June 30, 2026.
How has SCLZ performed compared with the S&P 500?
It has trailed the S&P 500. In 2025, its only full calendar year, SCLZ returned 10.92%, versus 17.88% for the S&P 500 Total Return Index and 8.91% for the CBOE S&P 500 BuyWrite Index, a covered-call benchmark. From its February 2024 launch through December 31, 2025, it averaged 12.38% a year, against 19.22% and 13.65% for those indexes. Index figures reflect no fees. Covered calls trade some upside for income, a cost that shows most in strong rallies.
Why does SCLZ hold so many tech stocks?
Because its stock screen looks beyond dividends. Each quarter, the sub-adviser ranks S&P 500 stocks on past dividend yields and potential price gains, and also weighs how richly their options have been priced. Low-volatility stocks, whose options fetch small premiums, can be screened out. As of June 30, 2026, technology was 38.3% of the portfolio, and Micron Technology (7.9%), Apple (6.2%) and Nvidia (6.0%) were the largest holdings. That concentration adds risk if tech stocks fall together.