Aptus Capital Advisors Launches Aptus Deferred Income ETF (DEFR) for Tax-Efficient Fixed Income Exposure

Aptus Capital Advisors launched the Aptus Deferred Income ETF (DEFR), an actively managed ETF designed for investors seeking core fixed income exposure with the objective of outperformance and/or enhanced tax efficiency. DEFR targets pre-tax returns that exceed those of traditional bond portfolios by shifting the composition of return to reduce current taxable income. The ETF uses a unique combination of Treasury ETF exposure and option overlay strategies, replicating the interest rate sensitivity and return potential of core bonds with returns driven primarily by capital appreciation and deferred gains.

Title: Aptus Capital Advisors Introduces Aptus Deferred Income ETF (DEFR)

On Wednesday, May 14, 2025, the Chicago Board Options Exchange (Cboe) will list the Aptus Deferred Income ETF (DEFR), a new actively managed exchange-traded product (ETP) from Aptus Capital Advisors. DEFR aims to provide investors with core fixed income exposure, focusing on outperformance and enhanced tax efficiency [1].

Key Features of DEFR

The Aptus Deferred Income ETF (DEFR) is designed to deliver pre-tax returns that surpass those of traditional bond portfolios. This is achieved by shifting the composition of returns to reduce current taxable income. The ETF employs a unique combination of Treasury ETF exposure and option overlay strategies, replicating the interest rate sensitivity and return potential of core bonds while driving returns primarily through capital appreciation and deferred gains [2].

Trading and Auction Process

DEFR will begin trading on Cboe on May 14, 2025, under the symbol DEFR. The ETF will be quoted and printed to the SIAC Tape B data feed. Cboe will conduct a single New Issue Auction to open trading at approximately 9:30 a.m. ET. For more information on how daily and new issue auctions are conducted for Cboe-listed securities, please refer to the US Equities Auction Process document [1].

Benefits for Investors

For investors seeking tax-efficient income, DEFR offers an attractive alternative. Municipal bonds, which are free from federal taxes and sometimes exempt from state taxes, provide a significant tax advantage. The 30-day SEC yield on municipal bond funds may initially seem lower than that of comparable taxable bond funds, but considering the tax-equivalent yield allows for a more accurate comparison [2].

Conclusion

The Aptus Deferred Income ETF (DEFR) represents a strategic addition to the ETF landscape, offering investors a unique blend of core fixed income exposure, outperformance potential, and enhanced tax efficiency. As DEFR begins trading on Cboe, investors should carefully evaluate the ETF's strategy and its alignment with their investment objectives.

References

[1] https://www.cboe.com/us/equities/notices/new_listings/details/?etf=true&firm_name=Aptus+Capital+Advisors&first_trade_dt=2025-05-14&ipo=true&symbols=DEFR
[2] https://money.usnews.com/investing/articles/best-tax-free-municipal-bond-funds