May 28 (Reuters) - REX Financial launched a single-stock

exchange-traded fund tied to Nvidia ( NVDA ), the powerhouse

chipmaker that has dominated stock market returns over the last

two years, on Wednesday morning, hours ahead of the release of

Nvidia's ( NVDA ) earnings.

The new fund, the REX NVDA Growth & Income ETF is a

form of covered call ETF that uses option strategies to generate

income while at the same time giving investors exposure to a

portion of the upside in Nvidia's ( NVDA ) stock price, REX said.

"We think it will allow people to have their cake and eat

it, too," said Scott Acheychek, REX's chief operating officer.

"They can stick with the stock that they follow and know and

like, but with a risk profile that they're comfortable with and

some weekly income" from the sale of options on Nvidia ( NVDA ), he said.

These single-stock option-based ETFs made their debut in

late 2023, and now have about $10 billion in total assets.

Overall interest in single-stock ETFs, a broader category that

includes 1.5x or 2x leveraged products, continues to grow, said

Bryan Armour, ETF analyst at Morningstar.

"They're all aimed at self-directed individual investors,"

Armour said.

While an ETF with this kind of structure likely would

outperform the underlying stock if that stock is flat to lower,

Armour said it makes more sense for investors either to buy

individual stocks outright or to turn to options-based ETF

strategies that are tied to broader portfolios.

"A product like this is not trying to maximize either growth

or income."

Acheychek said this new approach to covered call

single-stock ETFs is aimed at investors who increasingly are

looking for alternative income-generating products.

Nvidia ( NVDA ) shares closed at $134.81 a share, down 0.5%, in

exchange trading on Wednesday, ahead of the AI chipmaker's

earnings announcement.