HEDG Is a Hedged Equity ETF

and the recently launched equitable shares hedged equity ETF and your ticker there is HEDG.

It employs a novel investment strategy that aims for upside growth while aiming to neutralize market risk.

So what does a fund own and how does it work? >> So as the symbol says in the ticker HDG, it's a hedge product.

Um we it's very straightforward.

We're a beta play on the market.

So, we're long two securities, SPY IV, two ETFs that track the S&P 500.

We hedge them in a combination of covered calls and a long put spread.

So, we sell 90-day call options against the underlying positions.

We roll those positions systematically.

We then buy an out- of the money put spread on about a third of the portfolio.

You know, the net result, Stephanie, is that you end up with exposure to the S&P 500 with about 40% of the volatility, uh, producing income of about the after tax yield, the 10year.

We've corded distributions and we do put an emphasis on tax efficiency on our distributions.