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. Momentum Vol. Risk Contrib. MDD
AdvisorShares STAR Global Buy-Write ETF VEGA NYSEARCA Global Multi-Factors USD 39.75 13 M 24.9% Neutral 13%   12% -6%
Amplify CWP Enhanced Dividend Income ETF DIVO BATS US Market Potential Upside Limits USD 35.45 26 M 29.2% Neutral 13%   13% -7%
First Trust BuyWrite Income ETF FTHI NASDAQ US Market Potential Upside Limits USD 22.01 77 M 18.2% Neutral 11%   11% -7%
First Trust Hedged BuyWrite Income ETF FTLB NASDAQ US Market DownsideProtection / UpsideLimits USD 21.68 7.4 M 11.4% Neutral 9%   7% -8%
Global X Nasdaq100 Covered Call ETF QYLD NASDAQ Smart Betas Covered Calls USD 22.32 962 M 15.3% Neutral 15%   14% -7%
Global X S&P 500 Covered Call ETF XYLD NYSEARCA Smart Betas Covered Calls USD 48.93 147 M 24.7% Neutral 12%   12% -4%
Invesco S&P 500® BuyWrite ETF PBP NYSEARCA US Market Potential Upside Limits USD 22.69 242 M 27.7% Neutral 11%   11% -5%
Invesco S&P 500® Downside Hedged ETF PHDG NYSEARCA US Market DownsideProtection / UpsideLimits USD 35.31 18 M 13.8% Neutral 12%   9% -10%
WisdomTree CBOE S&P 500 PutWrite Strategy Fund PUTW NYSEARCA US Market Potential Downside Risk USD 31.74 195 M 29.4% Neutral 11%   11% -5%