AllianceBernstein launches INK on Nasdaq with an S&P 500 covered-call strategy

AllianceBernstein announced on 4 November 2026 that it had launched the AB Equity Premium Income ETF on Nasdaq under the ticker INK. Jane Street is the fund’s lead market maker, according to the issuer’s release.

INK is actively managed and seeks high current income and capital appreciation. The issuer says it combines broad equity exposure to the S&P 500 Index with a written covered-call option overlay intended to generate income.

Income is not downside protection

The release’s risk disclosures say that writing calls limits the opportunity to benefit from rising securities prices in exchange for receiving an upfront premium. The fund could significantly underperform in a sharply rising market.

The issuer also warns that option premiums may not fully protect against market declines. The fund retains the risk of losses in its equity holdings. Its intention to make monthly distributions does not guarantee that distributions will be made or remain stable.

Distributions exceeding income and gains will be treated as return of capital, reducing a shareholder’s cost basis, the release says.

Cash redemptions

The issuer’s disclosures also say the fund may redeem creation units for cash, in whole or in part, rather than in kind, as part of its tax-loss-harvesting strategy. The release warns that cash redemptions can increase transaction costs and require sales that recognise gains earlier than in-kind redemptions would.

This article is for information, not investment advice.