REX Shares Launches Defensive Autocallable Income ETF with RBC Capital Markets and CAIS

REX Shares has expanded its suite of alternative investment products with the launch of the REX Defensive Autocallable Income ETF (DACL). This new vehicle addresses a critical gap for fintech professionals and wealth managers seeking consistent yield without the traditional interest rate sensitivity or credit risks associated with standard fixed-income instruments.

What was announced

The REX Defensive Autocallable Income ETF (DACL) is a rules-based, income-focused exchange-traded fund designed to provide a defensive posture against market volatility. The fund tracks the Bloomberg US Large Cap VolMax Defensive Autocallable Total Return Index, which reflects the performance of a systematic, daily laddered portfolio of autocallable derivative positions. This structure is intended to offer investors broad equity exposure while maintaining a buffered downside profile.

DACL targets a distribution of approximately the Secured Overnight Financing Rate (SOFR) plus 3%. Unlike traditional barrier structures that can result in principal loss equal to the full index decline once a barrier is breached, DACL utilizes a 50% risk buffer. This is combined with a 200% gearing factor that applies only to declines exceeding that 50% buffer, observed at the final maturity of each position if it has not been autocalled. While distributions are a target, they are not guaranteed and may vary.

The fund's ecosystem involves several major financial institutions. Bloomberg Index Services Limited (Bloomberg Indices) supplies the underlying index, while RBC Capital Markets serves as the swap provider, acting as the counterparty to the swaps that provide the fund's index exposure. CAIS, an alternative investment platform for independent financial advisors, acts as a platform and marketing partner, focusing on advisor education and access. The ETF offers daily liquidity and transparency, managed directly by REX Shares.

"With DACL, we are extending our autocallable income platform to investors who want a more defensive posture. The strategy pairs a systematic, daily laddered autocallable portfolio with a buffered downside profile, pursuing consistent income within a well-defined risk framework."

Greg King, CEO and Founder of REX Shares.

The companies involved

REX Shares, LLC is a specialist firm known for innovating within the alternative ETF space, focusing on outcome-oriented investment designs that provide retail and institutional access to complex strategies. The firm frequently collaborates with major financial institutions to bring structured-product-style returns to the ETF wrapper.

CAIS is a leading alternative investment platform specifically built for independent financial advisors. It provides a streamlined ecosystem for accessing private equity, hedge funds, and structured products, aiming to reduce the operational friction typically associated with alternative assets. RBC Capital Markets is a premier global financial services company and a division of the Royal Bank of Canada. In this specific mandate, RBC acts strictly as a counterparty for the fund's swap agreements and is not involved in the promotion or management of the ETF. Bloomberg Index Services Limited provides the systematic indexing required to power these complex derivative-based strategies, leveraging Bloomberg's extensive data infrastructure.

What FF News has reported before

FF News has previously tracked the expansion of both REX Shares and its partners across the global financial landscape. In 2026, we covered the firm’s work in the leveraged space in BMO and REX Shares Launch 3x Leveraged Semiconductor ETNs on Cboe BZX. Our coverage of RBC Capital Markets has focused on its institutional growth and infrastructure, including RBC Names Sian Hurrell and Robin Beer Co-CEOs to Drive European Expansion and its role in payment innovation via Swift Revolutionizes Canadian Cross-Border Payments with RBC and TD Bank Partnership. Additionally, we reported on the technological evolution of the CAIS platform in RedBlack Integrates with CAIS to Streamline Alternatives Placements and Portfolio Management.

What this means

The launch of DACL signals a maturing of the "defined outcome" ETF market. By moving away from simple "buffer" funds and into autocallable structures with specific gearing, REX Shares is challenging traditional fixed-income providers who are struggling with duration risk. The 50% buffer is an aggressive defensive claim that puts pressure on traditional balanced funds. For fintech platforms, the integration with CAIS is the real story; it suggests that the next frontier for advisor-led wealth management isn't just access to alternatives, but the seamless delivery of complex, derivative-based income strategies in a liquid, transparent ETF format. Watch for whether competitors like Innovator or Global X respond with similar "geared buffer" products.