Amplify ETFs has launched the Amplify BlackSwan Tech & Treasury ETF (NYSE Arca: QSWN), an index-based ETF that seeks to hedge against significant losses while still participating in technology & growth equities (without an artificial cap).
QSWN invests in a combination of two low-correlated asset classes: US Treasury securities and long-term options (LEAPS) on a security that tracks the Nasdaq 100 Index.
QSWN expands the firm’s suite of BlackSwan ETFs, designed to provide investors with large-cap technology and growth companies with a built-in hedged approach. The other BlackSwan ETFs, SWAN and ISWN, have together amassed close to USD1 billion in assets. Launched in 2018, SWAN has shown to be an attractive risk-managed investment in the marketplace, the firm says. ISWN, launched earlier this year, provides access to international equities.
“With a variety of all-time highs in technology stocks reached in 2021, we believe hedging this exposure is a prudent consideration. QSWN provides technology stock investors the ability to manage downside risk while continuing to be invested,” says Christian Magoon, CEO of Amplify ETFs. “The launch of QSWN will broaden the BlackSwan product suite for investors by applying this proven and powerful investment philosophy to the technology market segment.”
QSWN seeks the investment results that correspond to the S-Network Tech & Treasury Index (the Index). The Index’s strategy seeks exposure to the Nasdaq 100 (with no artificial cap), while also protecting against significant losses. Approximately 90 per cent of QSWN is invested in U.S. Treasury securities with a targeted duration of the 10-year Note, and 10 per cent is invested in QQQ ETF LEAP options in the form of in-the-money calls.