Asset manager TrueMark Investments has launched JANZ, the seventh ETF in the True-Shares structured outcome product suite. The TrueShares Structured Outcome (January) 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.
JANZ’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. JANZ’s expense ratio is 0.79 per cent.
“Even if a bull-market persists, equity market volatility won’t be leaving the conversation at the end of 2020. We still don’t fully understand the long-term economic impact of the pandemic, there will likely be meaningful changes to fiscal and tax policy, and the potential for inflation continues to lurk on the horizon. And that’s just the tip of the iceberg,” says Michael Loukas, CEO at TrueMark Investments, the Advisor to TrueShares. “Given the potential of uncertainty heading into 2021, the ability of JANZ to help investors stay in the U.S. equity markets while providing a game plan for managing the effects of any sharp drawdowns makes it a useful portfolio tool. But its true uniqueness lies in the ability to pair built-in downside risk management with meaningful upside participation. After all, 2020 has once again proven to investors how extraordinarily resilient US Equities can be in the long run.”
JANZ is the seventh of twelve monthly-series ETFs in the True-Shares 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.
“We believe that the current market environment and looming economic uncertainty have set the stage for structured outcome products to shine, and we’re excited to bring to market the next ETF in our series with TrueMark Investments,” says Eric Metz, fund portfolio manager and Chief Investment Officer at SpiderRock Advisors. “We’re seeing growing demand for cost-effective exposure to a strategy that offers investors a measure of downside protection while allowing the opportunity to continue participating in the ongoing bull market.”