Swan Global Investments, a specialized asset management firm with a 20-year track record in hedged equity solutions, announced on Wednesday the launch of the Swan Hedged Equity Exchange-Traded Fund (HEGD). HEGD is the first ETF launched by Swan Global Investments.
HEGD aims to address long-term investors’ need for capital appreciation while hedging against the risks and volatility associated with today’s often volatile markets. This differentiated solution combines the benefits of low-cost, passive investing with an actively managed hedging strategy.
The fund is anchored by Swan’s proprietary Defined Risk Strategy (DRS), which is a time-tested, disciplined approach that utilizes hedged equity and options-based strategies seeking to help investors grow their capital while also seeking to mitigate market risk. HEGD pairs the benefits of passive investing in equity index ETFs with actively managed options strategies, potentially resulting in a less volatile investment experience and more consistent returns.
“Twenty years ago, we sought to fill a white space in the market with our Defined Risk Strategy, which has helped many investors reach their long-term goals despite market swings. Today, we are once again directly addressing the needs of both investors and their advisors with the launch of our Hedged Equity ETF,” said Randy Swan, Founder and Lead Portfolio Manager of Swan Global Investments.
“The culmination of the current low-yield environment, an aging population, and the significant shift toward options-based strategies has led us to create an easy-to-utilize ETF that will further democratize access to Swan’s DRS and continue our mission of helping investors stay on track by remaining always invested and always hedged.”
ETFs have enjoyed significant growth over the past decade, largely due to their easy-to-use, low-cost nature. In particular, financial advisors are increasingly shifting their clients toward ETFs to provide them with liquidity, transparency, and a tax-efficient way to invest their capital. In addition, ETFs facilitate incorporating and reconciling options-based strategies in Unified Managed Account (UMA) platforms.
Swan concluded: “The time is now for advisors to reconsider how they can best allocate clients’ irreplaceable capital to seek real, after-tax returns while attempting to mitigate risks. The typical 60-40 portfolio of stocks and bonds is ill-positioned going forward to repeat it’s returns of previous decades with bond yields near historic lows. Many investors may be unwilling to settle for low yields and/or high levels of unprotected risk. Our new ETF is a potential solution for the new investing landscape.”
To learn more about the Swan Hedged Equity ETF, visit etfs.
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