If there’s an investment-savvy reader out there who cares to have a look at and comment on this ETF for us that would be great. Doesn’t an “actively managed basket of put and call options” imply a steady drain on the fund unless and until there is a ‘Black Swan’ event?
The protection strategy
Universa’s proprietary Black Swan Protection Protocol (BSPP) uses an actively managed basket of put and call options that aims to protect the equity index exposure from Black Swan events. The BSPP should generate positive returns during sudden significant market declines. Gains generated from the BSPP are invested into the equity index exposure when it is historically less expensive, giving investors a potential “buy-low” advantage and the future compound growth that comes with it.
via Horizons Universa US Black Swan ETF (HUS.U).
HatTip to Trevor.
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