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Make Meta a Muse of Income With This ETF

With the help of the Muse AI agent effort, shares of Meta Platforms (META) are on a torrid pace, surging nearly 22% for the month ending Oct. 5. Whether or not that scintillating run portends a cooling-off period will happen for the stock remains to be seen. But investors who want Meta exposure at a potentially slower pace have options to consider.Enter the Direxion META Defined Income Boost ETF (MEIB). One of the seven members of Direxion’s recently launched Defined Income Boost ETF suite, MEIB may be ideal for market participants seeking some involvement with Meta while commanding solid income. The actively managed MEIB, like its counterparts in the Defined Income Boost ETF stable, is an options income strategy that attempts to generate an annual distribution yield of 20% while delivering twice-monthly payouts. Though MEIB is barely more than two months old, it’s already living up to the promise of twice-a-month distributions. Fortunately, income isn’t the only reason to evaluate this new ETF.MEIB Could Be MarvelousAs an options income ETF, MEIB won’t capture all of the upside of Meta shares when the stock rises. The other side of the coin is that if the stock retreats, MEIB could follow suit. Fortunately, Meta offers investors a solid fundamental proposition. That includes AI bolstering the sturdiness of the company’s core online advertising business. “Better recommendations and content understanding are increasing engagement, inventory and impressions, while larger retrieval, ranking and creative models are improving conversion and advertiser returns,” noted Deutsche Bank. “This creates a reinforcing cycle of better performance, higher budgets and more data, supporting durable growth even as comparisons become more demanding.” While there’s plenty of buzz around Muse, it’s worth noting that some of Meta’s established platforms, including Threads and WhatsApp, have advertising inroads as well. That could be supportive of upside for the stock and stability for MEIB. “Both offer scaled, lightly monetized inventory that can plug directly into Meta’s advertising infrastructure,” added Deutsche Bank. “WhatsApp opens access to 1.5 billion Updates daily average users, while Advantage+ integration should support strong demand and a faster monetization ramp.” In broad terms, MEIB may be appealing to income investors because Meta is a catalyst-rich story with the potential to extend to its recent winning ways. “Street models already incorporate much of Meta’s elevated AI infrastructure expense, supporting attractive incremental flow-through,” concluded Deutsche Bank. “Watermelon’s frontier-model launch, greater clarity around the Enterprise division and Business Agent monetization could shift the debate from spending risk toward earnings optionality.” For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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