There's a new ETF in town, and it's trying to do two things at once: ride the AI memory chip wave and hand you cash every week. XFUNDS launched the XFUNDS Memory Income ETF (DRMY) on Wednesday, and it's an actively managed fund that targets companies across the memory semiconductor ecosystem while running an options strategy to generate income.

The timing makes sense. Memory chips have become a hot theme as AI adoption accelerates, with demand for high-bandwidth memory (HBM) and advanced storage solutions soaring. But instead of just buying a basket of memory stocks, DRMY adds an options overlay designed to deliver weekly cash distributions. It's like a dividend stock, but faster.

XFUNDS CEO David Nicholas framed it as a way to tap into the broader memory opportunity. "Memory has become a critical layer of AI infrastructure, extending investment opportunities beyond chip manufacturers to the broader ecosystem," he said. "DRMY was designed to give investors access to that growth while also pursuing current income through an actively managed options overlay that seeks to deliver weekly cash distributions."

So what's inside the fund? The portfolio focuses on companies involved in developing, manufacturing, or enabling memory technologies. That covers a lot of ground: high-bandwidth memory (HBM), DRAM, NAND flash, SSDs, NOR flash, hard disk drives, and specialty memory products. Top holdings include SK Hynix (SKHY), Micron Technology (MU), Seagate Technology (STX), and Samsung Electronics. The stock selection uses a proprietary process to identify firms positioned to benefit from AI- and high-performance-computing-driven memory demand.

The income side is where it gets interesting. The ETF employs options on individual portfolio holdings, including synthetic covered calls, credit calls, and put spreads. The goal is to generate weekly cash distributions. That's a pretty aggressive payout schedule, and it means the fund is constantly harvesting premiums from options trades. But it also means the fund's returns could be capped in a strong rally, since covered calls limit upside. The expense ratio is 1.01%, which is on the higher side for an ETF, but actively managed funds with options strategies tend to cost more.

For investors who believe memory chips are the new oil in the AI engine, DRMY offers a way to play that theme while collecting income along the way. Just remember: the options strategy adds complexity, and weekly payouts don't guarantee total return. But if you like the idea of getting paid every week for holding AI memory stocks, this ETF might be worth a look.