Understanding The Innovation Of ASYMmetric ETFs | ETF Trends

This past March, ASYMmetric ETFs™, LLC launched the ASYMshares ASYMmetric 500 ETF (NYSE: ASPY), an innovative turn-key investment solution designed with the potential to generate positive returns across bear and bull markets. As detailed on its launch day, ASPY seeks to track the total return performance, before fees and expenses, of the ASYMmetric 500 Index.

ETF Trends had the opportunity to learn more from Darren R. Schuringa, CEO and Founder of ASYMmetric ETFs™, who explained more about the objectives and strategy of ASYMmetric ETFs.

Looking at why is now a good time for ASYMmetric ETFs™, as Schuringa explains, “ASPY was built with the objective of helping investors during times like this. The S&P 500 is trading near or at all-time highs. U.S. equities are in the midst of one of the longest bull market runs in history. The stock market does not go up forever. It is cyclical. There will be another bear market. The question is not if, but when. ASPY aims to allow investors to participate in further market upside while potentially protecting their nest egg from an inevitable market correction.”

Considering the current market direction, when addressing the current challenges for those trying to take risk into account when looking into investment options, Schuringa specifies how there are two challenges facing investors. “For those sitting in cash, when do I buy, and is it too late? For those who have massive unrealized gains from the long bull market run, when do I sell and lock in my gains? ASPY seeks to address both of these questions because it was engineered with the potential to provide upside participation with downside protection.”

He continues, “ASPY offers investors sitting on the sidelines the potential to participate in further market upside, with the potential for downside protection built-in. It offers investors with large gains the potential to lock in their gains and de-risk their portfolios. ASPY is designed to provide investors with a less volatile way to gain equity exposure.”

An ASYMmetric Standout

Looking more at the recently launched ASPY fund, in describing what makes this fund stand out as a fund worth getting into the ETF field with, Schuringa states, “We belive ASPY is a disruptive risk management tool. It is designed to potentially lower the risk and improve the performance of a traditional stock and bond portfolio. Retail investors and advisors need new tools to meet the challenges (low-interest rates) and risks (longest bull market in history) of today’s markets. ASPY seeks to help investors meet these challenges.”

“The 60/40 stock and bond portfolio is arguably broken. What alternatives are available to retail investors? Bonds provide very little income and have the risk of losing money in a rising interest rate environment. Adding more equity exposure isn’t the answer either, as it increases the risk of losses in a portfolio. ASPY aims to bridge the stock and bond gap. It is designed to provide consistent returns across bear and bull markets.”

In a broader sense, when considering what innovations separate ASYMmetric ETFs™ from other investment options, Schuringa illustrates how ASPY was designed to offer a different path to wealth creation through capital preservation. He continues, “A further differentiating feature, ASPY was designed to generate positive returns in bear markets. The narrative being told to retail investors is buy and hold. The best an investor can do is diversify between stocks and bonds and ride out the market losses. Wealthy and institutional investors have a very different investment narrative – don’t lose my money! ASYMmetric is here to challenge and hopefully change the antiquated stock and bond investment narrative.”

“ASYMmetric ETFs™ is founded on the principle of capital preservation. The secret to wealth creation is capital preservation. This is based on simple math. A 50% loss requires a 100% return to get back to even. ASPY is designed to avoid catastrophic losses and, in fact, seeks to make money in down markets. ASYMmetric has the potential to provide investors with a new path to wealth creation that is uncorrelated to either stocks or bonds.”

Proprietary Tools Of The Trade

Taking a look at ASYMmetric’s market tools, the Price Momentum Indicator and the Price Volatility Indicator, they bring some specific things to the table. As Schuringa notes, “ASYMmetric’s proprietary indicators seek to measure market risk accurately. The Price Momentum Indicator aims to identify market trends effectively. The Price Volatility Indicator seeks to measure volatility accurately. The Price Volatility Indicator is powered by PriceVol™, our proprietary measure of realized or price volatility.”

Schuringa continues, “ASYMmetric’s indicators are price-based. We believe that price-based indicators may be more accurate because price considers 100% of all known information, including unforeseen or black-swan events, and reflects them in the price of a stock or the market. ASYMmetric indicators are not trying to predict where the market will go, but try to accurately identify its risk environment. ASYMmetric Risk Management Technology uses the market risk environment to potentially position the portfolio to profit in the bear or bull market.”

Finally, as far as what is ASYMmetric hoping to achieve with ASPY and overall, given where things currently are, Schuringa makes it clear, “ASYMmetric ETFs™’ mission is to level the investment playing field. We want to empower retail investors and advisors by providing them access to institutionally vetted and proven investment solutions. ASYMmetric ETFs™ are designed to provide a different path to wealth creation focused on capital preservation. ASPY aims to lower the risk and improve the performance of a traditional stock and bond portfolio. ASYMmetric ETFs™ are transforming the way Main Street invests one portfolio at a time.”

For more information on ASYmmetric ETFs and ASPY, visit asymshares.com.

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