The strategy responds to the volatility of the S&P 500 Index by employing a downside risk mitigation strategy. We essentially increase exposure to equities in low vol environments, and allocate to T-bills. The fund responds and rebalances when and as often as the vol level passes the methodology’s target parameters, as well as at month end.
Many investors have sat on the sidelines for too long after ’08, and didn’t participate as much as they may have liked in the S&P 500 rally of past years. An ETF like VSPY allows more conservative investors who aren’t sure where the S&P and the market is going to participate in upside equity performance, but rest assured that in volatile market environments, their investments are safely allocated back to cash.”
Direxion S&P 500 RC Volatility Response Shares
For more information on Street One ETF market commentary and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected]
Street One Financial is an educational/research firm utilizing the Broker Dealer services of Precision Securities, a FINRA registered Broker/Dealer.