Kensington Hedged Premium Income ETF (KHPI)

The Kensington Hedged Premium Income ETF (KHPI) is an actively managed fund from Kensington Asset Management. It seeks to generate income through an options-based strategy while incorporating hedges intended to limit losses in falling markets.

The fund typically maintains exposure to U.S. equities and sells options to collect premium income, while also holding protective option positions or other hedges designed to cushion significant declines. This combination aims to produce a steadier income stream than a stock portfolio alone, with reduced sensitivity to sharp market drops.

Kensington manages the option positions actively, adjusting strikes, maturities and the size of the hedge as conditions change. Returns depend on equity market movements and the results of the options bought and sold.