SCEP - ETF AI Analysis
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Sterling Capital Hedged Equity Premium Income ETF (SCEP)
SCEP, the Sterling Capital Hedged Equity Premium Income ETF, earns a solid overall rating largely because it is built around high-quality tech and growth leaders like Alphabet, Apple, Microsoft, and Nvidia, all showing strong financial performance, positive earnings commentary, and promising AI- and cloud-driven growth. This strength is partly offset by holdings such as Amazon and Costco, where weaker technical trends, high valuations, and cash flow or expense-management concerns temper their contribution. The main risk factor is the fund’s heavy concentration in large technology and growth names, which ties its fortunes closely to that sector’s valuations and market cycles.
SCEP vs. SPDR S&P 500 ETF (SPY)
- AUM
- 244.13M
- Region
- North America
- Expense Ratio
- 0.65%
- Beta
- 0.78
- Issuer
- Sterling Capital
- Inception Date
- Dec 11, 2025
- Dividend Yield
- 5.60%
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
SCEP Summary
Sterling Capital Hedged Equity Premium Income ETF (SCEP) is an actively managed fund that invests in a wide range of large and mid-sized U.S. companies, with a strong tilt toward technology. It doesn’t track a specific index, but follows a total U.S. market theme while using options to seek extra income and help cushion market drops. Its top holdings include well-known names like Apple, Nvidia, Amazon, and Microsoft. Investors might consider SCEP for a mix of growth and income from leading U.S. stocks, but should know it can still go up and down with the stock market and is heavily exposed to tech companies.
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 leans heavily on U.S. Big Tech, with Apple, Nvidia, Microsoft, Alphabet, and Amazon steering the ship. Apple and Nvidia have been rising steadily, helping power returns, while Microsoft has been a standout engine lately thanks to strong momentum in cloud and AI. Alphabet and Amazon are more mixed, adding stability but not quite keeping pace with the leaders. Broadcom has lost some steam, modestly holding the fund back. Overall, this is a U.S.-centric, tech-driven portfolio where a handful of mega-cap names do most of the heavy lifting.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 AAPL | Apple | 6.60% | $16.24M | $5.07T | 29.12% | 79Outperform |
 NVDA | Nvidia | 5.99% | $14.73M | $5.25T | 13.81% | 76Outperform |
 GOOGL | Alphabet Class A | 5.17% | $12.72M | $3.90T | 19.06% | 85Outperform |
 MSFT | Microsoft | 4.79% | $11.78M | $3.95T | -0.04% | 79Outperform |
 AMZN | Amazon | 4.79% | $11.79M | $2.73T | 11.51% | 71Outperform |
 AVGO | Broadcom | 4.90% | $12.05M | $1.63T | -5.45% | 76Outperform |
 JPM | JPMorgan Chase | 3.52% | $8.64M | $892.59B | 10.40% | 72Outperform |
 PH | Parker Hannifin | 2.56% | $6.30M | $113.59B | 16.35% | 79Outperform |
 COST | Costco | 2.45% | $6.03M | $439.64B | 6.70% | 72Outperform |
 META | Meta Platforms | 2.37% | $5.82M | $1.59T | -17.40% | 76Outperform |
SCEP Technical Analysis
Price Trends
Market Momentum
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 24.81 is below the 20-day moving average (MA) of 24.91, above the 50-day MA of 24.74, and above the 200-day MA of 24.12, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.89 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 |
|---|---|---|---|---|---|
| SCEP | $24.81 | $27.00(8.83% Upside) | $244.13M | 0.65% | 73Outperform |
 SEUS | $26.06 | $30.81(18.24% Upside) | $943.10M | 0.30% | 73Outperform |
 BGDV | $31.18 | $36.86(18.21% Upside) | $865.45M | 0.45% | 74Outperform |
 AAUB | $50.98 | $60.44(18.56% Upside) | $841.51M | 0.10% | 66Neutral |
 AVTM | $54.74 | $64.41(17.66% Upside) | $774.92M | 0.22% | 60Neutral |
 SMRI | $46.68 | $56.68(21.41% Upside) | $706.91M | 0.71% | 73Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SCEP | Sterling Capital Hedged Equity Premium Income ETF | 24.81 | 1.17 | 4.94% | |
| SEUS | SEI QiM U.S. Equity Factor Allocation Active ETF | 26.05 | 0.79 | 3.13% | |
| BGDV | Bahl & Gaynor Dividend ETF | 31.18 | 4.77 | 18.07% | |
| AAUB | Alpha Architect US Equity 4 ETF | 50.98 | 1.50 | 3.02% | |
| AVTM | Avantis Total Equity Markets ETF | 54.74 | 5.10 | 10.27% | |
| SMRI | Bushido Capital US Equity ETF | 46.68 | 12.56 | 36.81% |
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