A Dual Dilemma: Combating Low Yields and Equity Risks | ETF Trends

The record-setting run in the equity markets has rewarded investors but has also raised an important question: “How much higher can US equities go?” Meanwhile, bond yields are as pitiful as ever. Yet forward-thinking investors have options to address this “dual dilemma.”

In the upcoming webcast, A Dual Dilemma: Combating Low Yields and Equity Risks, Marc Odo, Client Portfolio Manager, Swan Global Investments; and Rob Swan, COO and Portfolio Manager, Swan Global Investments, will highlight strategies to help investors pursue returns while mitigating risk in a low-yield world.

Specifically, the recently launched Swan Hedged Equity U.S. Large-Cap ETF (HEGD) aims to address long-term investors’ need for capital appreciation while hedging against the risks and volatility associated with today’s often unsteady markets. This differentiated solution combines the benefits of the low-cost ETF investment structure with an actively managed hedging strategy.

“Equity markets tend to go up over time, so we’re always invested,” according to Swan Capital Management. “Severe losses can derail investors’ goals, so we’re always hedged.”

The fund is anchored by Swan’s proprietary Defined Risk Strategy (DRS), a time-tested, disciplined approach that utilizes hedged equity and options-based strategies seeking to help investors grow their capital while mitigating downside risk. HEGD pairs the benefits of ETFs with actively managed options strategies, potentially resulting in a less volatile investment experience and more consistent returns.

The Swan Hedged Equity U.S. Large-Cap ETF provides a distinct blend of passive investing and active risk management. The ETF is always seeking to participate in S&P 500 returns via S&P 500 equity ETFs. Additionally, it is always hedged against market risk via long-term put options purchased at or near the money.

“The Swan Hedged Equity US Large Cap ETF (HEGD) seeks long-term capital appreciation while mitigating overall market risk,” according to Swan Capital Management. “HEGD is built upon our innovative and time-tested Always Invested, Always Hedged process launched in 1997. A distinct blend of passive investing1 and active risk management, all in one ETF.”

Financial advisors who are interested in learning more about an alternative investment strategy in today’s markets can register for the Thursday, October 7 webcast here.