TrueMark Investments has launched APRZ, the tenth ETF in the True-Shares structured outcome product suite.
The TrueShares Structured Outcome (April) 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.
APRZ’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 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. APRZ’s expense ratio is 0.79 per cent.
“After years of trending prices, it’s not terribly surprising to see volatility’s recent comeback spill-over into 2021. Choppy equity markets and the uncertainty surrounding the pandemic recovery have been met with accommodative monetary policy, leading to rising rates and yet another dilemma for investors,” says Michael Loukas, CEO at TrueMark Investments, the Advisor to TrueShares. “APRZ can help to alleviate the stress of market timing in today’s challenging conditions by serving as a practical tool for investors who are eager to take advantage of what could be another upcycle for equities, but are wary of getting pinched by untimely pullbacks.”
“Frustrating environments often cause many to prematurely abandon equities, but we know from past experience that it is during these exact periods in which it becomes absolutely vital to stay the course,” says Michael Loukas, CEO at TrueMark Investments. “Given its built-in buffer and uncapped upside participation structure, we’re excited to launch APRZ and make it easier for investors to ride out these difficult periods and still take advantage of the market’s long-term, upward trajectory.”
APRZ is the tenth monthly series in the True-Shares Structured Outcome ETF suite. Each fund will roll into a new investment position 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 return of volatility has been a reminder of just how valuable structured outcome products can be in the investors’ toolbox,” says Eric Metz, fund portfolio manager and Chief Investment Officer at SpiderRock Advisors. “We’re responding to the growing demand for a cost-effective vehicle that gives investors both upside exposure and downside protection peace of mind.”
