ZHDG Profile
The ZEGA Buy and Hedge ETF utilizes a multifaceted investment strategy designed to provide exposure to the performance of the U.S. large-cap equity market while managing risk through a combination of options and income-producing securities. The fund strategically invests in a blend of call index options, call options on the SPDR S&P 500 ETF Trust, and FLexible EXchange Options, all of which are designed to capture the performance of the S&P 500 Index, a leading benchmark for large-cap U.S. equities.
In addition to options, the fund allocates capital to fixed income securities and other income-producing assets, such as preferred shares. These investments are made either through exchange-traded funds (ETFs), other investment companies, or direct investments in individual securities. This diversified approach aims to balance the potential volatility of equities with the stability and income generated from fixed income and preferred shares.
The sub-adviser employs a tactical approach to achieve the fund's objectives, focusing on maintaining exposure to the U.S. equity market while utilizing options to hedge against potential market declines. By integrating call options and flexible exchange options, the fund seeks to enhance returns and protect capital during periods of market uncertainty. The use of these options strategies allows the fund to potentially benefit from upward market movements while mitigating downside risks.
As a non-diversified fund, the ZEGA Buy and Hedge ETF concentrates its investments in specific areas, including large-cap U.S. equities and income-generating securities. This targeted investment strategy reflects the funds commitment to capturing market performance through a structured options strategy and income-producing assets. The fund's non-diversified nature underscores its focus on a particular segment of the market, aiming to provide investors with both growth and income potential while managing risk through its hedging strategies.
|
