ACIO Profile
Aptus Collared Income Opportunity ETF is an actively managed exchange-traded fund (ETF) designed to provide investors with a balanced approach to equity investment, combining potential income generation with downside protection. The fund achieves its investment objectives by holding a diversified portfolio of U.S.-listed equity securities, spanning various market capitalizations. This strategy allows the fund to tap into the growth potential of a broad range of companies, while simultaneously implementing risk management techniques to mitigate potential losses.
One of the key features of the Aptus Collared Income Opportunity ETF is its use of options strategies, specifically the options collar strategy. The fund buys put options on the same underlying equity securities, U.S. equity ETFs, or indices that it holds, which serve as a protective measure against significant declines in the value of these securities. By purchasing put options, the fund limits its downside risk, ensuring that any substantial losses are capped at a predetermined level.
In addition to buying put options, the fund writes call options on up to 100% of each equity position in its portfolio. This strategy allows the fund to generate additional income through the premiums received from selling call options. The premiums earned from writing these call options are then partially reinvested to purchase the put options that form the collar strategy, creating a balanced approach where the fund can benefit from upward price movements while still having a safety net in place.
The Aptus Collared Income Opportunity ETF is designed to appeal to investors seeking equity exposure with a more conservative risk profile. By combining the potential for income generation with downside protection, the fund offers a unique investment strategy that caters to those looking for growth opportunities within a framework that prioritizes capital preservation. This approach makes it an attractive option for investors looking to navigate volatile market conditions with a more defensive equity allocation.
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