Alternative Investments/Hedge Funds: ASYMmetric Launches The ASYMshares ASYMmetric 500 ETF With An All-Weather, Long-Short Strategy
The ETF aims to generate positive returns across both bear and bull markets.
ASYMmetric ETFs, LLC announced the launch today of its ASYMshares ASYMmetric 500 ETF (NYSE: ASPY), calling it a disruptive risk management tool. The turnkey investment solution seeks to provide protection against bear market losses and to capture the majority of bull market gains. (BusinessWire)
ASYMshares ASYMmetric 500 ETF (NYSE: ASPY)
The ETF is an alternative investment that combines a long/short approach with a risk on/risk off hedging strategy that can generate returns for investors in all market circumstances.
It tracks the total return performance, before fees and expenses, of the ASYMmetric 500 Index. The Index is a rules-based, quantitative long/short hedging strategy that is defensive in a bear market yet captures the upside in a bull market.
The asset manager has integrated its proprietary Risk Management Technology into the SPDR S&P 500 ETF Trust (SPY). As a result, SPY functions as a low-volatility, uncorrelated, asymmetric investment option.
“At the core of what we’re doing is we’re bringing an institutionally vetted and proven technology to the mainstream,” CEO Darren Schuringa told etf.com.
“We want to level the playing field at ASYMmetric ETFs. And part of the way we’re doing that is by bringing these 1% solutions to the 99%,“ he added.
Market environments and risk identification
Proprietary, price-based algorithms dynamically manage net exposure in three market risk environments: Risk-Off, Risk-Elevated, and Risk-On.
Momentum and volatility indicators determine the current risk environment.
In a Risk-off environment, the fund will be net long stocks up to 75%. In a risk-elevated environment, the fund will be market-neutral.
In a risk-off condition, the fund’s exposure could be (-) 25%, achieved by selling shares of the SPDR S&P 500 ETF Trust (NYSEARCA: SPY).
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