Structured Downside Protection ETFs

 Structured Downside Protection ETFs
  • Pininvest Analysis

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

 

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Structured Downside Protection ETFs • Updated:

Name Ticker Exchange Category SubCategory Currency Cur.Price AUM Perf. Vol. Risk Contrib. MDD
 
AdvisorShares STAR Global Buy-Write ETF VEGA NYSEARCA US Market Potential Upside Limits USD 33.36 15 M 10.3% 10%   8% -10%
Amplify YieldShares CWP Dividend & Option Income ETF DIVO BATS US Market Potential Upside Limits USD 31.05 23 M 14.9% 13%   12% -14%
Barclays ETN+ S&P VEQTOR ETN VQT NYSEARCA US Market Limited Downside Protection USD 160.07 12 M 0.7% 9%   5% -8%
First Trust BuyWrite Income ETF FTHI NASDAQ US Market Potential Upside Limits USD 22.65 113 M 9.8% 12%   9% -13%
First Trust Hedged BuyWrite Income ETF FTLB NASDAQ US Market DownsideProtection/UpsideLimits USD 22.24 10 M 6.8% 11%   6% -11%
Global X Nasdaq-100 Covered Call ETF QYLD NASDAQ US Market DownsideProtection/UpsideLimits USD 23.19 824 M 13.0% 15%   12% -15%
Global X S&P 500 Covered Call ETF HSPX NYSEARCA US Market Potential Upside Limits USD 49.69 143 M 10.5% 13%   11% -12%
Powershares S&P 500 BuyWrite Portfolio PBP NYSEARCA US Market Potential Upside Limits USD 22.22 292 M 6.0% 11%   9% -13%
Powershares S&P 500 Downside Hedged Portfolio PHDG NYSEARCA US Market Limited Downside Protection USD 27.23 19 M 1.4% 9%   6% -9%
WisdomTree CBOE Russell 2000 PutWrite Strategy Fund RPUT BATS US Market Potential Downside Risk USD 20.14 1.0 M -16.2% 23%   12% -30%
WisdomTree CBOE S&P 500 PutWrite Strategy Fund PUTW NYSEARCA US Market Potential Downside Risk USD 28.43 215 M 2.2% 12%   10% -17%