Structured funds, combining exposure to equities (or to an equity index) with derivatives (bought or sold) or futures, seem to be the poor cousins of the smart-β family, keeping the assets under management mostly small and making explanations of the strategies perfunctory
This may well reflect a world of benign, subdued volatility and of upward trending indices but, by virtue of anticipation, alternative investment options should be considered
Because sharp drops on the market cannot be discounted, this theme is mainly about ‘downside protection’ but – to differentiate the option – we confront these funds with alternative strategies assuming markets move sideways or continue to expand
The benchmark, LHA Market State® Alpha Seeker ETF