HEGD Profile
The Swan Hedged Equity US Large Cap ETF is an actively-managed exchange-traded fund designed to provide investors with exposure to large capitalization U.S. equities while employing a hedging strategy to mitigate potential losses. The fund invests at least 80% of its net assets, including any borrowings for investment purposes, directly in the equity securities of large-cap U.S. companies. Additionally, it may allocate assets indirectly through other investment vehicles, such as additional ETFs, to achieve its investment objectives.
In pursuing its investment strategy, the fund actively manages its portfolio by buying and selling equity securities of large-cap U.S. companies. These companies are typically characterized by their substantial market capitalization and established business models, which can offer stability and growth potential. The fund’s strategy includes the use of options, specifically put and call options, to hedge against market volatility and potential downturns, aiming to provide a smoother investment experience for its shareholders.
The hedging component of the ETF involves the use of derivative instruments, including put and call options, to manage risk and protect the portfolio from significant losses. This approach allows the fund to potentially benefit from upward market trends while mitigating the impact of adverse market movements. The fund’s management team carefully selects and implements these options strategies to align with its overall investment goals and risk tolerance.
Despite its active management and hedging strategies, the Swan Hedged Equity US Large Cap ETF is non-diversified, meaning it is concentrated in a specific segment of the market. Investors should be aware that this concentration can lead to higher volatility and risk compared to more broadly diversified investment options. The ETF aims to offer a blend of large-cap equity exposure with risk management features to cater to investors seeking both growth and protection in their portfolios.
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