tiprankstipranks
Advertisement

SCEP - ETF AI Analysis

Compare

Top Page

SCEP

Sterling Capital Hedged Equity Premium Income ETF (SCEP)

Rating:73Outperform
Price Target:
SCEP’s rating reflects a solid portfolio built around major technology leaders like Alphabet and Microsoft, whose strong financial performance, positive earnings outlooks, and heavy investment in AI and cloud services provide a strong foundation for long-term growth. However, several key holdings such as Nvidia, Amazon, and Costco face issues like high valuations, bearish or mixed technical signals, and cash flow or inventory challenges, which introduce risk and help explain why the fund’s rating is not higher, especially given its significant concentration in large tech and growth-oriented names.
Positive Factors
Strong Mega-Cap Tech Leaders
Several of the largest positions, including major technology names like Alphabet, Apple, Nvidia, Broadcom, and Amazon, have shown strong or steady gains, helping support the fund’s recent performance.
Broad Sector Diversification
Holdings spread across technology, financials, industrials, consumer sectors, health care, and more help reduce the impact if any one industry runs into trouble.
Positive Recent Performance Trend
The ETF has delivered positive returns over the past three months and year to date, indicating that its strategy has been working in the current market environment.
Negative Factors
High Technology Concentration
With a large portion of assets in the technology sector and several big tech names among the top holdings, the fund is sensitive to downturns in tech stocks.
Higher-Than-Average Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the gross return is eaten up by fees each year.
Limited Geographic Diversification
Because the ETF is almost entirely invested in U.S. companies, investors get little protection if the U.S. market struggles compared with other regions.

SCEP vs. SPDR S&P 500 ETF (SPY)

SCEP Summary

The Sterling Capital Hedged Equity Premium Income ETF (SCEP) is an actively managed fund that invests in many large and mid-sized U.S. companies, with a strong tilt toward technology. It doesn’t track a set index, but instead uses an options strategy to seek extra income while trying to limit some losses. Well-known holdings include Apple, Microsoft, Alphabet (Google), Amazon, and Nvidia. Someone might consider SCEP for broad stock market exposure plus potential income from its options strategy. A key risk is that it still holds stocks, so its value can go up and down with the overall market and tech sector.
How much will it cost me?The Sterling Capital Hedged Equity Premium Income ETF (SCEP) has an expense ratio of 0.65%, meaning you’ll pay $6.50 per year for every $1,000 invested. This is higher than the average for ETFs because it is actively managed, using a sophisticated option strategy to enhance income and manage risk.
What would affect this ETF?The Sterling Capital Hedged Equity Premium Income ETF (SCEP) could benefit from continued growth in the technology sector, as it has significant exposure to leading companies like Nvidia, Microsoft, and Apple. However, rising interest rates or economic slowdowns could negatively impact its financial and consumer cyclical holdings, while its option overlay strategy may limit upside potential during strong market rallies. Additionally, regulatory changes in the U.S. could affect its top holdings, particularly in the technology and financial sectors.

SCEP Top 10 Holdings

SCEP is leaning heavily on Big Tech and AI, with Nvidia and Broadcom acting as key engines of recent gains thanks to their strong, AI-driven momentum. Apple and Alphabet are also helping, though their performance has been more steady than spectacular. On the flip side, Microsoft and Meta have been losing steam, and Amazon’s mixed showing has kept the fund from fully capitalizing on the tech rally. JPMorgan and Parker Hannifin add a rising industrial and financial backbone, but overall this is a U.S.-centric, tech-focused story with a few notable laggards.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple6.08%$14.31M$4.53T47.93%
79
Outperform
Alphabet Class A6.04%$14.22M$4.34T110.50%
85
Outperform
Nvidia5.49%$12.93M$4.71T22.22%
76
Outperform
Broadcom5.47%$12.88M$1.71T36.42%
76
Outperform
Amazon4.73%$11.12M$2.61T12.14%
71
Outperform
JPMorgan Chase3.61%$8.51M$896.22B19.96%
72
Outperform
Microsoft3.57%$8.39M$2.90T-22.12%
79
Outperform
Parker Hannifin2.57%$6.06M$121.41B35.45%
79
Outperform
Costco2.40%$5.66M$422.05B-3.89%
72
Outperform
Meta Platforms2.34%$5.52M$1.48T-14.58%
76
Outperform

SCEP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
24.64
Positive
100DMA
24.17
Positive
200DMA
Market Momentum
MACD
0.05
Negative
RSI
54.26
Neutral
STOCH
64.27
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCEP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 24.65, equal to the 50-day MA of 24.64, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCEP.

SCEP Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$234.68M0.65%
73
Outperform
$940.18M0.59%
69
Neutral
$876.23M1.30%
68
Neutral
$799.05M0.45%
74
Outperform
$773.59M0.22%
63
Neutral
$706.70M0.18%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCEP
Sterling Capital Hedged Equity Premium Income ETF
24.82
1.00
4.20%
SYLD
Cambria Shareholder Yield ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
BGDV
Bahl & Gaynor Dividend ETF
AVTM
Avantis Total Equity Markets ETF
VFMF
Vanguard U.S. Multifactor ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
Table of Contents
Advertisement