Alternative Investments: TrueMark Investments Launches A Structured Outcome ETF That Tracks the S&P 500 Index

The ETF listed on CBOE BZX effective July 1.

TrueMark Investments has launched the TrueShares Structured Outcome (July) ETF (NYSEAMERICAN: JULZ) that offers investors exposure to the S&P 500 price index. The ETF is a “structured outcome” product, the first of its kind from TrueMark’s structured outcome product suite. The ETF has an inbuilt downside buffer, with uncapped upside participation. (ETF Express)

How it works

The ETF uses options to ensure that investors on returns (before fees and expenses) similar to the S&P 500 index. However, it provides an 8-12% downside buffer on the first of the index losses over the 12 month investment period.

The period is defined as 12 months starting July 1, 2020.

The ETF strategy involves the purchase and sale of options on the S&P 500 price index or an ETF that tracks the S&P 500 price return index.

Through this strategy, investors have unlimited upside participation with a cap on the downside risks.

(Learn more about how defined outcome buffer strategies work in this interview of Jeffrey Chang of CBOE Vest by Tim Melvin)

The fund had net assets of $ 2.5 million as of July 1, 2020. Its expense ratio is 0.79%.

COVID-19 volatility

“Recent volatility surrounding the pandemic-driven economic shutdown has served as a stark example of why structured outcome ETFs are being developed for investor portfolios,” says Michael Loukas, CEO at TrueMark Investments. “In times like these, we’re reminded that market returns aren’t sequential, they’re lumpy, which is why JULZ’s built-in downside buffer can be such a game-changer.  The potential to help smooth out the valleys may help investors, particularly those that are concerned about the impact of market declines on their equity investments, to stay in the stock market long enough to take advantage of any subsequent peaks that are so vital to long-term returns.”

Related Story:  Insurance Giant Allianz Launches Risk-Managed ETFs

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