ZEGA Financial Launches ZHDG, An Actively-Managed, Buy and Hedge Exchange-Traded Fund
ZEGA Financial has launched the ZEGA Buy and Hedge ETF (ticker: ZHDG) aimed at providing broad U.S. equity large-cap market exposure while mitigating downside risks. The ETF targets long-term capital appreciation by investing in index-based equity options and yield-producing assets. According to Co-Founder and CEO Jay Pestrichelli, this fund serves investors seeking growth without incurring significant losses, especially as traditional bond solutions diminish in effectiveness amid current economic conditions. The ETF is backed by the firm’s decade-long track record in innovative hedging strategies.
- Launch of ZHDG offers innovative hedging strategies for market participation.
- Targets both equity growth and downside risk mitigation.
- Backed by 10-year track record in options-based strategies.
- Equity market volatility could affect the ETF's performance.
- Dependence on derivatives introduces potential for significant loss.
WEST PALM BEACH, Fla., July 07, 2021 (GLOBE NEWSWIRE) -- 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
FAQ
What is the ZEGA Buy and Hedge ETF (ZHDG)?
How does ZHDG mitigate downside risk?
What investment strategy does ZHDG utilize?
Who is behind the launch of ZHDG?
What are the risks associated with investing in ZHDG?
