REX AI Equity Premium Income ETF shifts to weekly payouts, but income sustainability is uncertain.

The REX AI Equity Premium Income ETF (AIPI) changed its distribution schedule from monthly to weekly payments while maintaining a similar annual yield near 35%. The fund generates income by selling call options on AI-focused stocks like Palantir and NVIDIA, benefiting from high volatility premiums. However, analysts warn that a significant portion of the payout may be a return of capital, raising concerns about long-term sustainability if AI stock volatility decreases or the sector declines sharply. Investors seeking steady AI income should understand the risk of capital erosion, while those wanting growth might prefer direct stock ownership.