The ZEGA Buy and Hedge ETF (ZHDG) is an actively-managed exchange-traded fund (“ETF”) that seeks to provide exposure to the U.S. large capitalization equity market, while mitigating overall market downside risk in the event of a major market decline. To achieve its investment objective, ZHDG invests in a combination of S&P 500 index options as well as fixed income or other income producing securities.
The portion of the portfolio invested in equity index options provides long-term exposure to the equity markets, seeking upside potential while mitigating downside risk. The portion of the portfolio invested in yield-bearing positions seeks cash generation to purchase the equity options.
ZHDG aims to limit equity losses to 8-10% in any 12-month period. The total portfolio may still experience losses in excess of the 8-10% target range over a 12-month period.
The underlying yield-bearing investments may experience losses, but ZHDG seeks to limit those losses to 10% through its investments in purchased put options.
|Fund Name||ZEGA Buy and Hedge ETF|
|Primary Exchange||NYSE Arca|
|Gross Expense Ratio||1.02%|
|30-Day SEC Yield*||1.58%|
*The 30-Day SEC Yield is calculated with a standardized formula mandated by the SEC. The formula is based on the maximum offering price per share and does not reflect waivers in effect. As of 10/31/21
Fund Data and Pricing
30-Day Median Spread is a calculation of the Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10-second interval during each trading day during the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.
Performance Returns (Month-End & Quarter-End)
Inception Date: 07/06/2021
|Month-End as of October 31, 2021||Quarter-End as of September 30, 2021|
|MTD||QTD||YTD||SINCE INCEPTION||QTD||YTD||1 YEAR||3 YEAR||SINCE INCEPTION|
|S&P 500 Index||7.01%||7.01%||–||6.46%||–||–||–||–||-0.51%|
|Barclays US Aggregate Bond Index||-0.03%||-0.03%||–||-0.46%||–||–||–||–||-0.43%|
Indexes are unmanaged. It is not possible to invest directly in an index.
The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (833) 415-4006.
Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on historical returns. Returns beyond 1 year are annualized.
A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded.
Performance Returns (Calendar Year)
|FUND NAME||EX-DATE||RECORD DATE||PAYABLE DATE||AMOUNT|
Top 10 Holdings
Holdings subject to change.
How to Purchase our ETF
ZEGA Buy and Hedge ETF (ZHDG) is available through various channels including via phone (833) 415-4006, broker-dealers, investment advisers, and other financial services firms, including:
This Fund is not affiliated with these financial service firms. Their listing should not be viewed as a recommendation or endorsement.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, click here. Read the prospectus or summary prospectus carefully before investing.
Equity Market Risk. The equity securities underlying the Fund’s option investments may experience sudden, unpredictable drops in value or long periods of decline in value.
Derivatives Risk. The Fund invests in options, which are a form of derivative investment. Derivatives have risks, including the imperfect correlation between the value of such instruments and the underlying assets or index; the loss of principal, including the potential loss of amounts greater than the initial amount invested in the derivative instrument; and illiquidity of the derivative investments. The derivatives used by the Fund may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.
As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility.
The Fund may invest in fixed income securities directly or through ETFs or other investment companies. Fixed income securities are subject to interest rate risk (discussed further herein), call risk, prepayment and extension risk, credit risk (discussed further herein), and liquidity risk. Interest rates may go up resulting in a decrease in the value of the fixed income securities held by the Fund. Credit risk is the risk that an issuer will not make timely payments of principal and interest. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
New Fund Risk. The Fund is a recently organized management investment company with no operating history.