TrueShares has expanded its range of structured outcome products with the launch of two autocallable-focused ETFs, marking one of the more complex income-oriented ETF launches of 2025. On Tuesday, the firm introduced the TrueShares S&P Autocallable High Income ETF (BATS:PAYH) and the TrueShares S&P Autocallable Defensive Income ETF (BATS:PAYM). Both are designed to provide monthly income while aiming to reduce downside risk.
Both ETFs invest at least 80% of their assets in U.S. Treasuries, cash, and cash equivalents, along with unfunded total return swaps that reference the autocallable portfolio. Morgan Stanley provides the hedge overlay, a feature TrueShares says sets these funds apart from existing offerings in the autocallable ETF market.
PAYH targets investors looking for higher monthly income with more volatility exposure, while PAYM focuses on generating more defensive income. Jeffrey Feldman, a former executive at Wolverine Trading with over 20 years of ETF risk management experience, oversees the portfolio.
Autocallable products, which have long been a staple of bank-issued structured notes, are attracting attention from advisors looking for income strategies beyond traditional covered call ETFs. TrueShares believes that demand will increase as investors face high volatility and uncertainty in interest rates.
Unlike laddered autocallable strategies often found in the market, PAYH and PAYM use a dynamically managed portfolio of synthetic autocallable exposures linked to custom volatility-controlled S&P indices. PAYH tracks the S&P 500 Futures 35% Intraday Volatility Target Index, while PAYM links to a lower-volatility 20% Intraday Volatility Target Index. This positions the two funds at different risk levels.
This launch builds on TrueShares’ broader commitment to structured income and outcome-based ETFs. The firm was an early mover in uncapped buffer ETFs and currently manages a suite of 12 funds based on monthly outcome strategies. Earlier this year, it also launched TrueShares Seasonality Laddered Buffered ETF (BATS:ONEZ), a fund-of-funds ETF that allocates across its structured outcome and tactical ETF families.
TrueShares surpassed the $1 billion mark in assets under management in the first half of 2025, highlighting growing interest from advisors in alternative income strategies amid volatile equity markets.
With PAYH and PAYM, TrueShares is packaging Wall Street-style structured income into an ETF format. This brings autocallables out of the note desk and onto the exchange without the need for formal attire.
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