If you've been wondering how to package Wall Street's complex structured products into something you can actually trade on an exchange, TrueShares just gave you an answer. The firm rolled out two autocallable-focused ETFs on Tuesday, marking one of the more sophisticated income-oriented launches this year. Meet the TrueShares S&P Autocallable High Income ETF (PAYH) and the TrueShares S&P Autocallable Defensive Income ETF (PAYM), both engineered to pay monthly income while cushioning downside risk.

Here's how they work. Both ETFs allocate at least 80% of their assets to U.S. Treasuries, cash, and cash equivalents, then layer on unfunded total return swaps tied to an autocallable portfolio. Morgan Stanley handles the hedge overlay, which TrueShares says differentiates these funds from other autocallable ETFs already on the market. Think of it as taking products that traditionally lived in the structured note universe and making them accessible without needing a private banker on speed dial.

The two funds serve different appetites for risk. PAYH is built for investors chasing higher monthly income and willing to stomach more volatility. PAYM, on the other hand, aims for more conservative, defensive income generation. Jeffrey Feldman, who spent over 20 years in ETF risk management at Wolverine Trading, oversees the portfolio strategy.

Autocallable products aren't new. They've been a fixture in bank-issued structured notes for years. But they're gaining traction with advisors looking beyond the usual covered call ETF playbook, especially as volatility spikes and interest rate uncertainty lingers. TrueShares is betting that demand for these strategies will only grow as markets stay choppy.

What makes these funds different from typical laddered autocallable approaches? Instead of static structures, PAYH and PAYM use dynamically managed portfolios 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 follows a more subdued 20% Intraday Volatility Target Index. That spread positions the two funds at distinctly different risk profiles.

This launch builds on TrueShares' broader push into structured income and outcome-based strategies. The firm was early to the uncapped buffer ETF space and now manages a suite of 12 funds centered on monthly outcome strategies. Earlier in 2025, it also launched the TrueShares Seasonality Laddered Buffered ETF (ONEZ), a fund-of-funds that spreads capital across its structured outcome and tactical ETF families.

The momentum is real. TrueShares surpassed $1 billion in assets under management in the first half of 2025, signaling growing interest from advisors hunting for alternative income strategies amid turbulent equity markets.

With PAYH and PAYM, TrueShares is essentially democratizing Wall Street's structured income toolkit. Autocallables are moving from the note desk to the exchange floor, no suit and tie required.