OVLH Profile
The Overlay Shares Hedged Large Cap Equity ETF is an actively-managed exchange-traded fund (ETF) designed to provide investors with targeted exposure to U.S. large-cap equity securities while employing strategies to manage risk. The fund’s investment approach is multifaceted, focusing on a combination of equity exposure, income generation, and risk hedging.
The primary strategy involves investing in one or more ETFs that provide exposure to U.S. large-cap equities. This approach allows the fund to gain access to a broad spectrum of large-cap stocks through diversified ETF holdings or by directly investing in the underlying securities of these ETFs. The fund's active management aims to enhance returns by selecting high-performing large-cap equity ETFs based on market conditions and investment objectives.
To generate additional income, the fund actively engages in buying and selling listed short-term put options. This strategy involves selling put options to collect premiums and potentially purchasing short-term puts to enhance liquidity and manage risk. The income generated from these options contributes to the fund’s overall return, complementing its core equity investments.
In addition to income generation, the fund seeks to mitigate potential losses from significant declines in U.S. large-cap equities by purchasing long-term out-of-the-money put options. These options serve as a hedge against substantial downturns in the equity markets, providing a safety net and reducing the fund’s exposure to severe losses. As a result, the fund aims to balance growth potential with risk management, making it a strategic choice for investors seeking to navigate the volatility of large-cap equity investments.
|
