ETF Strategies with Built-In Risk Management

A number of money managers have entered the ETF industry to bring institutional-level strategies to retail investors.

For instance, Transamerica Asset Management has partnered with Milliman Financial Risk Management in providing the DeltaShares ETF suite to help investors gain a core equity strategy with a risk-management feature that is implemented by some of the largest insurers in the financial industry.

“We focus on risk management, so risk management and all different types of insurance: property and casualty, employee benefits, life and health,” Adam Schenck, Managing Director of Portfolio Management for Milliman Financial Risk Management, said at the Inside ETFs 2018 conference.

The DeltaShares S&P 500 Managed Risk ETF (NYSEArca: DMRL), which tracks the S&P 500 Managed Risk 2.0 Index, is a benchmark designed to measure U.S. large-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.