SpiderRock Advisors today announced a unique solution that for the first time offers customized option overlay strategies to advisors and their clients in a Unified Managed Account (UMA) or Separately Managed Account (SMA).
The new model offering is called “SpiderRock Advisors Qualified Solutions Portfolios. Built with SPDR® ETFs.” This unique solution enables qualified accounts with access to State Street Global Advisors SPDR® ETFs model portfolios, to utilize SpiderRock Advisors option overlay strategies.
Eric Metz, President and Chief Investment Officer at SpiderRock Advisors, told ETF Trends its clients were demanding this solution.
“The need for investment products that provide income solutions, protection against downside risk and volatility reduction is at its highest, given the capital markets landscape in the U.S.,” Metz told ETF Trends. “Our work with State Street Global Advisors SPDRs has answered our clients’ demand, as their ETF lineup has the industry-leading liquidity with respect to options.”
Metz added that customized portfolios serve a critical need for financial advisors in today’s market environment because each client has different investment objectives.
“By partnering with State Street Global Advisors SPDRs and their ETF Model Portfolios, we are delivering on this bespoke need,” he said.
Increasing Advisor adoption of option-based strategies in taxable accounts over the last several years has led to an increasing interest in non-taxable solutions. IRS rules defining those strategies that are allowable within IRAs have historically limited the ability to deliver benefits like call premium and principal protection.
Now, however, the combination of great liquidity in SPDR ETFs and SpiderRock Advisors world-class technology will allow investors of all account sizes to access these benefits.
“State Street has a long history of working closely with clients to meet their portfolio construction needs,” said Sue Thompson, Head of SPDR Americas Distribution for State Street Global Advisors. “It’s very rewarding to see SpiderRock Advisors rely on our solutions including superior option liquidity to help their clients succeed.”
For more information, visit www.spdrs.com.