ZEGA Financial Launches ZHDG, An Actively-Managed, Buy and Hedge Exchange-Traded Fund
July 07 2021 - 2:33PM
ZEGA Financial, a registered investment adviser and investment
manager known for helping investors successfully navigate volatile
and uncertain markets through innovative hedging strategies, today
announced the launch of the ZEGA Buy and Hedge ETF (ticker: ZHDG).
The ETF is designed to provide broad U.S. equity large-cap market
exposure while seeking to limit downside risk in the event of a
material market correction. ZHDG seeks to capture upside
market movement to provide long-term capital appreciation while
aiming to limit equity losses in any 12-month period.
“Investors want to benefit from the market’s upside but fear
severe market downturns. Bonds are becoming less and less of a
solution for risk mitigation with rates near all-time lows and
inflation on the rise,” said Jay Pestrichelli, Co-Founder and CEO,
ZEGA Financial, and co-author of the book, “Buy and Hedge, the Five
Iron Rules for Investing Over the Long Term.”
“The ZEGA Buy and Hedge ETF is a progressive core holding for
investors seeking equity growth while aiming to mitigate overall
market downside. It functions like a traditional 60/40 portfolio
without losing potentially critical periods of market
participation,” said Mr. Pestrichelli.
The ZHDG portfolio invests in index-based equity options and
yield-producing assets. The portion of the portfolio invested in
equity options provides long-term exposure to the equity markets,
seeking upside potential while mitigating downside risk. The
portion of the portfolio invested for income seeks cash generation
to help purchase the equity options.
The ZEGA team has a 10-year buy and hedge strategy track record
with expertise in using options to shape the risk-reward
profiles of its strategies.
ZEGA Financial partnered with the team at Tidal ETF Services to
bring ZHDG to market.
ABOUT ZEGA Financial
Founded in 2011, ZEGA Financial is an SEC-registered investment
adviser and investment manager that specializes in derivatives. The
firm leverages technology, data, experience, and proprietary
strategies to craft products and services for advisors and
individual investors. ZEGA Financial helps investors successfully
navigate volatile and uncertain markets through innovative hedging
strategies. The firm’s founding principles grew out of the
bestselling book co-authored by Jay Pestrichelli, ZEGA’s CEO and
Co-Founder, entitled “Buy and Hedge, the Five Iron Rules for
Investing Over the Long Term.” His book highlights how to bridge
the complicated nature of options investing with the needs of the
everyday investor. ZEGA is the sub-adviser for the ZEGA Buy and
Hedge ETF.
For more information, visit https://zegaetfs.com/
ABOUT TIDAL ETF SERVICES
Formed by ETF industry pioneers and thought leaders, Tidal is a
boutique multi-manager ETF platform whose mission is to disrupt the
way ETFs have historically been developed, launched, marketed and
sold. With a transparent, partnership approach, Tidal offers a
comprehensive suite of services, proprietary tools, and
methodologies designed to bring lasting ideas to market. As
advocates for ETF innovation, Tidal helps institutions and RIAs
launch interesting and viable ETFs. For more information, visit
tidaletfservices.com.
DISCLOSURES
Investors should consider the investment objectives,
risks, charges and expenses carefully before investing. For a
prospectus or summary prospectus with this and other information
about the Fund, please call (833)
415-4006 or visit our website at www.zegaetfs.com.
Read the prospectus or summary prospectus carefully before
investing.
FUND RISKS:
Equity Market Risk. The equity securities
underlying the Fund’s option investments may experience sudden,
unpredictable drops in value or long periods of decline in
value.
Derivatives Risk. The Fund invests in options,
which are a form of derivative investment. Derivatives have risks,
including the imperfect correlation between the value of such
instruments and the underlying assets or index; the loss of
principal, including the potential loss of amounts greater than the
initial amount invested in the derivative instrument; and
illiquidity of the derivative investments. The derivatives used by
the Fund may give rise to a form of leverage. Leverage magnifies
the potential for gain and the risk of loss.
As with all ETFs, Shares may be bought and sold in the secondary
market at market prices. Although it is expected that the market
price of Shares will approximate the Fund’s NAV, there may be times
when the market price of Shares is more than the NAV intra-day
(premium) or less than the NAV intra-day (discount) due to supply
and demand of Shares or during periods of market volatility.
The Fund may invest in fixed income securities directly or
through ETFs or other investment companies. Fixed income securities
are subject to interest rate risk (discussed further herein), call
risk, prepayment and extension risk, credit risk (discussed further
herein), and liquidity risk. Interest rates may go up resulting in
a decrease in the value of the fixed income securities held by the
Fund. Credit risk is the risk that an issuer will not make timely
payments of principal and interest. Because the Fund is
“non-diversified,” it may invest a greater percentage of its assets
in the securities of a single issuer or a smaller number of issuers
than if it was a diversified fund. As a result, a decline in the
value of an investment in a single issuer or a smaller number of
issuers could cause the Fund’s overall value to decline to a
greater degree than if the Fund held a more diversified
portfolio.
New Fund Risk. The Fund is a recently organized management
investment company with no operating history.
Distributed by Foreside Fund Services, LLC
MEDIA CONTACT:
Leann Gaines
leanng@tidaletfservices.com
847.309.5497
Zega Buy and Hedge ETF (AMEX:ZHDG)
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