ASYMmetric ETFs has launched two new funds, the ASYMmetric Smart Income ETF (NYSE Arca: MORE) and the ASYMmetric Smart Alpha S&P 500 ETF (NYSE Arca: ZSPY). These smart category funds seek to deliver greater returns or income with less risk by focusing on capital preservation.
MORE is a passive, rules-based fund developed to produce more income with less risk. The fund seeks to generate more than twice the income of the S&P 500 with less risk.
Without using derivatives or leverage, MORE dynamically manages investment exposure in both bull and bear markets. The fund uses smart screens and momentum indicators to identify high-income equities in a bull market to maximize secure income, while protecting investors’ principal in a downturn by allocating to Treasuries or cash. It can be ideal for conservative investors who are seeking high current income.
ZSPY is a passive, rules-based fund engineered to provide better returns with the same risk. The fund seeks to generate twice the returns of the S&P 500 with no additional risk over a market cycle. ZSPY maximizes alpha by using leverage in a bull market, while relying on hedging strategies to protect and potentially grow assets in a bear market.
ZSPY is a new take on leveraged ETFs and provides investors more of what they are looking for from leverage — greater upside — and less of what they don’t want, which is amplified downside. The fund addresses the weaknesses of traditional leveraged products, which are often limited to daily returns, by offering leveraged period returns. It accomplishes this by offering 2x leveraged exposure to the S&P 500 in a bull market and reducing exposure as market risk starts to rise to protect capital and potentially profit in a bear market by being short the S&P 500.
“At ASYMmetric, we believe all investors should have the opportunity to preserve and compound their wealth, not just those with access to expensive trading tools and institutional investment teams,” said CEO and founder Darren Schuringa in a news release. “Current market volatility is making investors seasick. Smoothing out returns and minimizing risk is good for everyone; investors are able to sleep better at night and advisors will have happier clients and less volatile fees.”