Hedged equity strategies have become a popular solution for investors seeking to diversify beyond the basic stock and bond portfolio mix. With equities and fixed income both negative in 2022 and the economic outlook uncertain, hedged equity is getting a closer look.
In the upcoming webcast, How Hedged Equity Strategies Help Prepare for Bull and Bear Markets, Marc Odo, client portfolio manager at Swan Global Investments, and Rob Swan, COO and portfolio manager at Swan Global Investments, will discuss the benefits and risks of hedged equity strategies and the best practices for financial advisors when utilizing these alternative strategies to address market risks.
Specifically, the 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.
“Diversification is not enough; seeking a smoother investing experience demands an active approach,” according to Swan Capital Management. “Redefine your portfolios with our innovative and time-tested hedged equity process, now in a new ETF structure.”
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 always seeks 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) is always invested, always hedged seeking long-term capital appreciation while mitigating overall market risk,” according to Swan Capital Management.
Financial advisors who are interested in learning more about the hedged equity strategy can register for the Thursday, September 8 webcast here.