SCEP - ETF AI Analysis
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Sterling Capital Hedged Equity Premium Income ETF (SCEP)
Rating:74Outperform
Price Target:―
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)
AUM235.46M
RegionNorth America
Expense Ratio0.65%
Beta0.77
IssuerSterling Capital
Inception DateDec 11, 2025
Dividend Yield5.05%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume24,790
30 Day Avg. Volume29,265
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
30.13Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering54
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, with Nvidia and Apple doing much of the heavy lifting as their shares keep rising on AI and services momentum. Microsoft and Amazon have been more of a mixed bag—strong longer-term drivers, but recently a bit choppy, so they’re not giving the fund full throttle. Alphabet and Broadcom are also key tech pillars, yet their lagging near-term performance has added some drag. With most of its top positions in U.S. mega-cap tech, the ETF’s story is largely a bet on America’s digital and AI growth engines.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Apple | 6.43% | $15.27M | $4.60T | 41.97% | 79 Outperform | |
| Nvidia | 6.10% | $14.50M | $5.39T | 22.80% | 76 Outperform | |
| Alphabet Class A | 5.55% | $13.20M | $4.03T | 38.37% | 85 Outperform | |
| Broadcom | 5.27% | $12.52M | $1.73T | 0.33% | 76 Outperform | |
| Amazon | 4.95% | $11.75M | $2.72T | 10.40% | 71 Outperform | |
| Microsoft | 4.55% | $10.80M | $3.65T | -3.42% | 79 Outperform | |
| JPMorgan Chase | 3.79% | $9.01M | $942.89B | 15.71% | 72 Outperform | |
| Parker Hannifin | 2.75% | $6.53M | $119.68B | 21.39% | 79 Outperform | |
| Meta Platforms | 2.52% | $5.98M | $1.67T | -14.72% | 76 Outperform | |
| Costco | 2.28% | $5.41M | $400.28B | -6.42% | 72 Outperform |
SCEP Technical Analysis
Negative
―
Price Trends
24.81
Negative
24.57
Positive
Market Momentum
-0.08
Positive
44.30
Neutral
18.94
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCEP, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 24.87, equal to the 50-day MA of 24.81, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 18.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCEP.
SCEP Peer Comparison
Comparison Results
Performance Comparison
SCEP
Sterling Capital Hedged Equity Premium Income ETF
24.64
1.09
4.63%
AVTM
Avantis Total Equity Markets ETF
―
―
―
BGDV
Bahl & Gaynor Dividend ETF
―
―
―
ULTY
YieldMax Ultra Option Income Strategy ETF
―
―
―
XCHG
AB US Equity ETF
―
―
―
SMRI
Bushido Capital US Equity 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: ―
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