Aptus Capital Advisors, LLC has announced the launch of the Aptus Enhanced Yield ETF (Cboe: JUCY), an actively-managed ETF which combines short-duration government securities with an equity options overlay designed to deliver attractive, distributable income.
The launch of JUCY adds to the firm’s growing suite of actively-managed ETF strategies, as the firm recently reached USD2 billion in assets under management across its ETFs.
Launched in 2013, AptusCapital Advisors writes that it supports advisers pursuing better client outcomes through hedged strategies, managed portfolios, and investment support. The firm has seen independent wealth managers gravitate to options-based strategies for their abilities to pursue upside while dynamically managing risk.
“Our Drawdown Patrol strategies have been a compelling solution for many advisors as they look to meet client needs in an unsettled rate environment.” says JD Gardner, Founder and Portfolio Manager at Aptus Capital Advisors. “We’re proud to have helped advisers help clients over the past six years, and excited to now offer a true income strategy not reliant on long duration or sketchy credit.”
“As investors continue to navigate the uncertainties of a rising rate environment, Aptus Capital Advisors is providing an innovative, options-based solution that aims to meet client demand for income generation,” says Rob Marrocco, Senior Director of Listings at Cboe Global Markets. “We are honoured to support the continued expansion of their product suite and remain committed to providing Aptus with the exceptional listings services and market quality they have come to expect on our exchange.”
JUCY is an actively-managed strategy seeking attractive income with capital preservation. The strategy typically invests in a portfolio of lower-duration US Treasuries and Agency Securities to provide stability and income. It then enhances the portfolio’s yield by using an option overlay to provide more distributable income. At least 80 per cent of the fund’s net assets will be invested in government and agency securities. JUCY is expected to begin trading on the Cboe BZX Exchange on Tuesday, November 1, 2022.
