Tidal Financial Group Launches GammaRoad Market Navigation ETF (NYSE: GMMA) in Strategic Partnership With GammaRoad Capital Partners
Tidal Financial Group and GammaRoad Capital Partners have launched the GammaRoad Market Navigation ETF (NYSE: GMMA), an innovative exchange-traded fund designed to deliver S&P 500-like returns with reduced risk and uncapped upside potential. The fund is based on the MarketVector™-GammaRoad U.S. Equity Strategy Index (MVGMMA), which uses a rules-based strategy to navigate market volatility.
The ETF's strategy measures three key market influences: consumer confidence, economically sensitive asset relationships, and price direction. It dynamically allocates between U.S. equities and Treasury Bills based on these factors, aiming to provide downside protection without limiting upside potential. This approach differentiates GMMA from traditional hedged equity and buffer strategies that often cap returns.
Il Tidal Financial Group e il GammaRoad Capital Partners hanno lanciato il GammaRoad Market Navigation ETF (NYSE: GMMA), un fondo negoziabile innovativo progettato per fornire rendimenti simili all'S&P 500 con rischio ridotto e potenziale di guadagno illimitato. Il fondo si basa sull'Indice di Strategia Azionaria U.S. MarketVector™-GammaRoad (MVGMMA), che utilizza una strategia basata su regole per navigare nella volatilità del mercato.
La strategia dell'ETF misura tre influenze chiave del mercato: la fiducia dei consumatori, le relazioni tra beni sensibili all'economia e la direzione dei prezzi. Alloca dinamicamente tra azioni statunitensi e Treasury Bills basandosi su questi fattori, mirando a fornire protezione al ribasso senza limitare il potenziale al rialzo. Questo approccio distingue GMMA dalle tradizionali strategie di azioni coperte e di buffer che spesso limitano i rendimenti.
Tidal Financial Group y GammaRoad Capital Partners han lanzado el GammaRoad Market Navigation ETF (NYSE: GMMA), un fondo cotizado innovador diseñado para ofrecer rendimientos similares al S&P 500 con menor riesgo y potencial de ganancias ilimitado. El fondo se basa en el Índice de Estrategia de Acciones de EE.UU. MarketVector™-GammaRoad (MVGMMA), que utiliza una estrategia basada en reglas para navegar por la volatilidad del mercado.
La estrategia del ETF mide tres influencias clave del mercado: la confianza del consumidor, las relaciones de activos sensibles a la economía y la dirección de los precios. Asigna dinámicamente entre acciones estadounidenses y Bonos del Tesoro basado en estos factores, con el objetivo de proporcionar protección a la baja sin limitar el potencial al alza. Este enfoque diferencia a GMMA de las estrategias tradicionales de acciones cubiertas y de buffer que a menudo limitan los rendimientos.
Tidal Financial Group와 GammaRoad Capital Partners는 GammaRoad Market Navigation ETF (NYSE: GMMA)를 출시했습니다. 이는 S&P 500과 유사한 수익을 제공하면서 위험을 줄이고 무제한 상승 잠재력을 갖춘 혁신적인 상장지수펀드입니다. 이 펀드는 MarketVector™-GammaRoad 미국 주식 전략 지수 (MVGMMA)를 기반으로 하며, 규칙 기반 전략으로 시장 변동성을 탐색합니다.
이 ETF의 전략은 세 가지 주요 시장 영향을 측정합니다: 소비자 신뢰, 경제에 민감한 자산 관계 및 가격 방향. 이러한 요소에 따라 미국 주식과 재무부 채권 간에 동적으로 할당하여 하방 보호를 제공하며 상승 잠재력을 제한하지 않습니다. 이 접근 방식은 GMMA를 전통적인 헤지 자산 및 버퍼 전략과 차별화합니다.
Tidal Financial Group et GammaRoad Capital Partners ont lancé le GammaRoad Market Navigation ETF (NYSE: GMMA), un fonds négocié en bourse innovant conçu pour offrir des rendements similaires à ceux du S&P 500 avec un risque réduit et un potentiel de hausse illimité. Le fonds est basé sur le Marché Vector™-GammaRoad U.S. Equity Strategy Index (MVGMMA), qui utilise une stratégie basée sur des règles pour naviguer dans la volatilité du marché.
La stratégie de l'ETF évalue trois influences clés du marché: la confiance des consommateurs, les relations d'actifs sensibles à l'économie et la direction des prix. Elle alloue dynamiquement entre actions américaines et bons du Trésor en fonction de ces facteurs, visant à fournir une protection à la baisse sans limiter le potentiel à la hausse. Cette approche distingue GMMA des stratégies traditionnelles de couverture et de buffer qui limitent souvent les rendements.
Die Tidal Financial Group und die GammaRoad Capital Partners haben das GammaRoad Market Navigation ETF (NYSE: GMMA) ins Leben gerufen, einen innovativen börsengehandelten Fonds, der renditeähnliche Leistungen des S&P 500 mit reduziertem Risiko und unbegrenztem Aufwärtspotenzial bieten soll. Der Fonds basiert auf dem MarketVector™-GammaRoad U.S. Equity Strategy Index (MVGMMA), der eine regelbasierte Strategie zur Navigation durch die Marktvolatilität verwendet.
Die Strategie des ETFs misst drei Hauptmarkteinflüsse: das Verbrauchervertrauen, wirtschaftlich empfindliche Vermögensbeziehungen und die Preisrichtung. Sie weist dynamisch zwischen US-Aktien und Staatsanleihen zu, basierend auf diesen Faktoren, mit dem Ziel, einen Abwärtsschutz zu bieten, ohne das Aufwärtspotenzial zu beschränken. Dieser Ansatz unterscheidet GMMA von traditionellen Hedged-Equity- und Buffer-Strategien, die oft die Renditen begrenzen.
- Launch of a new ETF (GMMA) designed to provide S&P 500-like returns with lower risk
- Dynamic allocation strategy between U.S. equities and Treasury Bills based on market conditions
- Uncapped upside potential, unlike traditional hedged equity strategies
- Partnership with established firms: MarketVector Indexes and Tidal Financial Group
- None.
Insights
The launch of the GammaRoad Market Navigation ETF (GMMA) represents an innovative approach to risk-adjusted equity investing. By utilizing a dynamic allocation strategy between U.S. equities and Treasury Bills based on three key market indicators, GMMA aims to provide S&P 500-like returns with reduced volatility. This product addresses a growing demand for strategies that offer both downside protection and upside potential, particularly relevant in today's volatile market environment.
The fund's unique selling point is its uncapped upside potential, which differentiates it from traditional hedged equity or buffer strategies that often limit gains. However, investors should note that the fund's performance will heavily depend on the accuracy of its market indicators and the timeliness of its allocation shifts. The absence of a track record for the underlying index (launched in December 2023) means that real-world performance remains to be seen, adding an element of uncertainty for early adopters.
The GammaRoad Market Navigation ETF enters a crowded field of risk-managed ETFs but brings a distinctive approach to the table. Its focus on consumer confidence, economically sensitive asset relationships and price direction as key indicators could resonate with investors seeking a more holistic view of market risk. The product's launch timing is strategic, capitalizing on increased market volatility and investor anxiety.
However, the success of this ETF will largely depend on its ability to outperform both traditional index funds and competing risk-managed strategies over time. The fund's dynamic allocation model, while potentially effective in theory, may face challenges in rapidly changing market conditions. Investors will likely compare GMMA's performance and fees against established low-volatility ETFs and actively managed funds targeting similar objectives. The fund's reception could indicate a broader trend towards more sophisticated, rules-based investment products in the retail market.
The GammaRoad Market Navigation ETF leverages a rules-based, quantitative approach to dynamically adjust equity exposure. This systematic strategy, powered by the MarketVector™-GammaRoad U.S. Equity Strategy Index, represents a fusion of financial expertise and technological innovation in investment management. The use of multiple data points to gauge market conditions suggests a more nuanced approach compared to simpler trend-following strategies.
However, the effectiveness of this algorithm-driven approach hinges on the quality and timeliness of the data inputs, as well as the robustness of the model in various market scenarios. As with any quantitative strategy, there's a risk of overfitting to historical data or failing to adapt to unprecedented market conditions. Investors should consider how transparent the fund will be about its allocation decisions and whether there's human oversight to handle exceptional circumstances. The tech-driven nature of this ETF could appeal to investors seeking a more modern, data-driven approach to risk management in their equity portfolios.
Fund seeks S&P 500-like returns with significantly less risk and uncapped upside
The fund is powered by the MarketVector™-GammaRoad
The strategy measures three equally weighted, key market influences to quantify how favorable the current environment is for taking
“As markets continue to experience bouts of market volatility, the launch of this product comes at the right time. Investors are increasingly seeking strategies that provide both downside protection and upside potential without the limitations of traditional hedging methods,” Gavin Filmore, Chief Revenue Officer at Tidal. “With the GammaRoad Market Navigation ETF, GammaRoad aims to deliver a solution that adapts dynamically to changing market conditions, offering a more balanced approach to navigating risk while still capitalizing on growth opportunities.”
GammaRoad, the ETF sponsor, is a research firm that develops systematic investment strategies with the goal of improving traditional portfolios. The firm is led by Jordan Rizzuto, CFA, Managing Partner, Chief Investment Officer, and strategy architect, and Matthew Landon, CFA, President and Chief Operating Officer. The duo brings complementary expertise and a deep history working on the institutional and wealth management side of the business respectively.
“Hedged equity and buffer strategies primarily use options to reduce downside risk, which can often limit upside potential,” said Rizzuto. “Our strategy offers a systematic process to gradually adjust equity exposure as the risk environment changes, and aims to significantly reduce downside risk without limiting upside returns.”
“Investors want the upside potential of buying and holding
The GammaRoad Market Navigation ETF is supported by best-in-class service providers, including MarketVector Indexes as index provider, Tidal Financial Group LLC as the ETF issuer and Tidal Investments LLC as the fund’s investment adviser. For more information, please visit Market Navigation ETF.
About Tidal Financial Group, LLC
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit https://www.tidalfinancialgroup.com/.
About GammaRoad Capital Partners, LLC
GammaRoad Capital Partners, LLC is a research firm that develops systematic investment strategies with the goal of improving traditional portfolios. The firm’s objective and rules-based strategies aim to reduce drawdowns while capitalizing on the most favorable market environments. For more information, visit https://www.gammaroadcapital.com/.
About MarketVector Indexes
MarketVector Indexes™ (“MarketVector”) is a regulated Benchmark Administrator in
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 (844) 954-4499. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.
Underlying ETF-Specific Risks. The Fund attempts to invest all, or substantially all, of its assets in one or more of the following ETFs (or comparable ETFs): SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL), the SPDR® S&P 500 ETF Trust (SPY), and the ProShares Ultra S&P500® ETF (SSO). As a result, when the Fund invests in such ETF(s), it is indirectly subject to the principal risks of investing such ETF(s).
BIL Principal Risks: The principal risks of investing in the SPDR® Bloomberg 1-3 Month T-Bill ETF include General Market Risk, Debt Securities Risk (including income risk),
SPY Principal Risks: The principal risks of investing in the SPDR® S&P 500 ETF Trust include Index Strategy Risk, Passive Investment Risk, Tracking Error Risk, Equity Market Risk, General Market Risk, and ETF Risks. In addition, as of the date of this Prospectus, SPY is subject to Information Technology Industry Risk.
SSO Principal Risks: The principal risks of investing in the ProShares Ultra S&P500® ETF include Leverage Risk (leverage amplifies losses during S&P Index downturns, potentially leading to total investment loss), Holding Period Risk (performance over periods longer than a day may significantly differ from the targeted leveraged (2X) return that the ETF seeks on a daily basis (“Daily Target”)).
Underlying ETF Risks. The Fund will incur higher and duplicative expenses because it invests in underlying ETFs. There is also the risk that the Fund may suffer losses due to the investment practices of the Underlying ETFs. The Fund will be subject to substantially the same risks as those associated with the direct ownership of securities held by the underlying ETFs.
Leveraged ETFs. Investing in leveraged underlying ETFs will amplify the Fund’s gains and losses. Most leveraged ETFs “reset” daily. Due to the effect of compounding, their performance over longer periods of time can differ significantly from the performance of their underlying index or benchmark during the same period of time.
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.
Tracking Error Risk. While the Fund generally seeks to track the performance, before fees and expenses, of the Index, the performance of the Fund and its Index may differ from each other for a variety of reasons.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Distributed by Foreside Fund Services, LLC.
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Media
Gregory FCA for Tidal and GammaRoad Capital Partners
Jenna Silverblatt
(610)-428-3296
Jenna@gregoryfca.com
Source: GammaRoad Capital Partners, LLC
FAQ
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