IL-based asset manager TrueMark Investments has launched DECZ, the latest ETF in the TrueShares structured outcome product suite. The TrueShares Structured Outcome (December) ETF is sub-advised by SpiderRock Advisors, a Chicago-based asset management firm specialising in option overlay strategies. The fund seeks to provide investors with structured outcome exposure to the S&P 500 Price Index. TrueMark believes its structured outcome ETF suite is the first of its kind to offer built-in downside buffers with uncapped upside participation.1
DECZ’s structure allows for the potential of an asymmetric return profile. The fund seeks to provide investors with returns (before fees and expenses) that track the S&P 500 Price Index, while seeking to provide a buffer of 8-12 per cent on the first of that index’s losses over the fund’s one-year investment period. In practice, the fund adviser will target the buffer at 10 per cent of index declines over the investment period following the first day of trading while also allowing for uncapped upside participation. DECZ’s expense ratio is 0.79 per cent.
“On-going volatility is a tall obstacle to navigate, and 2020 seems to have raised the bar. The combination of low-yields amid a surprisingly resilient, yet tumultuous, equity market have left many investors at a crossroads,” says Michael Loukas, CEO at TrueMark Investments, the Advisor to TrueShares. “DECZ is a practical tool for investors that need to deploy capital but are wary of a sharp drawdown. It is now possible to maintain upside exposure without taking on the full downside risk thanks to the built-in buffers and uncapped upside participation at the core of these liquid, cost-efficient ETFs.”
DECZ is the sixth in a monthly series of twelve ETFs that comprise the TrueShares Structured Outcome ETF suite. Each fund will roll over at the end of a year-long term, at which point the downside buffer and upside participation will reset based on current pricing for the options used by the strategy for each respective ETF.
“The capital markets landscape that 2020 has presented to all investors make the TrueShares Structured Outcome series quite timely. Those allocating to equities are needing and desiring built in buffers to help offset the volatility inherent in markets, and that need has been amplified this year”, says Eric Metz, fund portfolio manager and Chief Investment Officer at SpiderRock Advisors. “As a result, we’re seeing growing demand for cost-effective exposure to strategies that offers downside protection while still giving investors the opportunity to participate in the ongoing bull market.”