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Realizing Uncapped Potential in Defined Outcome ETFs

Thursday, July 16, 2020 | 4:15 PM Eastern Daylight Time

With market volatility significantly impacting the first half of 2020, advisors are keenly aware of an investor’s inclination to pull back on equity allocations during difficult times.  History tells us that this type of emotional reaction can seriously limit their ability to re-coup losses as markets start to rally back. Trying to limit concerned selling often leads to difficult conversations focused on investors’ long-term goals.

For investors that need to maintain equity allocations but are concerned about losses moving forward, new tools have emerged. In an attempt to help manage downside impact, a class of ETFs have been designed to offer downside “buffers.” These funds seek to limit some stated percentage of downside loss in exchange for placing a hard limit or “cap” on the market upside that the fund will participate in. 

Attend this timely webinar and discover:

  • How Structured Outcome ETFs are defined
  • A new type of ETF that includes a “buffer” strategy while removing hard participation cap
  • How Structured Outcome ETFs differ
  • Where these funds might fit best in a client portfolio

CFP, CIMA®, CPWA®, CIMC®, RMA®, and AEP® CE Credits have been applied for and are pending approval.

Eric Metz CFA
CIO
SpiderRock Advisors

 

Michael N. Loukas
Principal & Chief Executive Officer
TrueMark

 

Jason Weaver
Co-founder
Weaver Consulting

 

David Armstrong - Moderator
Editor-in-Chief and Executive Director of Content and User Engagement
WealthManagement.com

 

SPONSORED BY
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Due to the cost of the options used by the Fund, the correlation of the Fund's performance to that of the S&P 500 Price Index is expected to be less than if the fund invested directly in the S&P 500 Price Index without using options, and could substantially less.

For Institutional Investor Use Only. Not for Public Distribution.

The Fund's investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information, and it may be obtained at https://www.true-shares.com/julz.com. Read it carefully before investing. Foreside Fund Services, LLC, distributor.

The Fund has characteristics unlike many other traditional investment products and may not be suitable for all investors. You should only consider an investment in the Fund if you fully understand the inherent risks, which can be found in the prospectus.

Investing involves risks. Loss of principal is possible.   There is no guarantee the fund will achieve its investment objective. 

The TrueShares Structured Outcome ETFs seek to provide investors with returns (before fees and expenses) that track those of the S&P 500 Price Return Index (the “S&P 500 Price Index”) while seeking to provide a buffer against the first 8% to 12% of S&P 500 Price Index losses, over a one year period without a Cap on potential upside returns. The Fund is recently organized with no operating history for prospective investors to base their investment decision which may increase risks. 

The Fund employs a buffered strategy in an attempt to buffer against losses in the S&P 500 Price Index over the course of a 1-year period. There is no guarantee the Fund will be successful in this strategy, and investors may experience losses beyond targeted levels. 
Due to the cost of the options used by the Fund, the correlation of the Fund's performance to that of the S&P 500 Price Index is expected to be less than if the fund invested directly in the S&P 500 Price Index without using options, and could substantially less.  The Funds are designed to seek to achieve their investment objective for investments made on the first day of an Investment Period and held until the last day of the Investment Period. In the event an investor purchases Shares after the date the  which the options were entered into or sells Shares prior to the last day of the Investment period, the buffer that the Fund seeks to provide may not be available and there may be limited to no upside potential. The Fund does not provide principal protection and an investor may experience significant losses on its investment, including the loss of its entire investment.