companies and enhances the portfolio’s yield by using an option overlay in order to provide distributable income. The Aptus Large Cap Enhanced Yield ETF is an actively managed ETF that seeks to achieve its objective principally by investing in a hybrid portfolio of that invest in equity securities of large Cap U.S. companies in developed and emerging markets throughout the world and enhances the portfolio’s yield by using an option overlay in order to provide distributable income. The Aptus International Enhanced Yield ETF is an actively managed ETF that seeks to achieve its objective principally by investing in a portfolio of other ETFs that invest in equity securities of non-U.S. On May 1, 2023, the Aptus International Enhanced Yield ETF changed its name from Aptus International Drawdown Managed Equity ETF. ACIO has an added goal of minimizing downside using long put options on a broad-based market Index. The strategy invests in 50 large cap stocks and pursues additional income by selling coverall calls on those stocks. The Aptus Collared Investment Opportunity ETF is an actively-managed strategy seeking growth and income using covered calls on individual equities. The Fund typically invests approximately 90% to 95% of its assets to obtain exposure to investment-grade corporate bonds and invests the remainder of its assets to obtain exposure to large capitalization U.S. The Aptus Defined Risk ETF is an actively-managed exchange-traded fund that seeks to achieve its objective through a hybrid fixed income and equity strategy. Equity holdings are selected using a yield + growth framework favoring companies who pass our requirements for growth, momentum, value, and yield. The Aptus Drawdown-Managed Equity ETF is an actively-managed strategy seeking capital appreciation with a focus on managing drawdown risk through hedges. Investing in ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of the shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Funds ability to sell its shares. Diversification does not assure a profit nor protect against loss in a declining market. This risk is usually greater for longer-term debt securities. Investments in debt securities typically decrease in value when interest rates rise. The Funds may invest in other investment companies and ETFs which may result in higher and duplicative expenses. As a result, prospective investors have no track record or history on which to base their investment decision. The Fund is a recently organized investment company with no operating history. A decision as to whether, when, and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. Fixed income securities, such as bonds, involve certain risks, which include credit risk and interest rate risk. The Fund invests in fixed income securities. Investments in ELNs often have risks similar to the Underlying Instruments, which include market risk and, as applicable, foreign securities and currency risk. Investing in ELNs may be more costly to a Fund than if the Fund had invested in the Underlying Instruments directly. The Funds could experience a loss if its derivatives do not perform as anticipated, the derivatives are not correlated with the performance of their underlying security, or if the Funds are unable to purchase or liquidate a position because of an illiquid secondary market. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in a derivative could have a substantial impact on the performance of the Funds. Derivatives, such as the options in which the Funds invest, can be volatile and involve various types and degrees of risks. The Funds’ use of options may reduce the ability to profit from increases in the value of the underlying securities. The Funds’ use of call and put options can lead to losses because of adverse movements in the price or value of the underlying security, which may be magnified by certain features of the options. The Funds may invest in options, the Funds risk losing all or part of the cash paid (premium) for purchasing put and call options. Therefore, the Funds are more exposed to individual stock volatility than diversified funds. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than diversified funds.
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