ASYMmetric ETFs has announced the launch of two new funds, ASYMmetric Smart Income ETF (NYSE: MORE) and ASYMmetric Smart Alpha S&P 500 ETF (NYSE: ZSPY).
The firm writes that these smart category funds, built for family offices, advisers and retail investors, epitomise ASYMmetric’s investment philosophy, which seeks to deliver greater returns or income with less risk by focusing on capital preservation.
The firm’s flagship offering, ASYMshares ASYMmetric 500 ETF (NYSE: ASPY), introduced Smart Equity solutions designed to generate market returns with a fraction of the risk, the firm writes. Since it began trading in 2021, the ASYMshares ASYMmetric 500 ETF has garnered admiration, winning the 2022 Newcomer Strategic Beta ETF of the Year at With Intelligence’s Mutual Fund Industry and ETF Awards, the firm says.
CEO and founder Darren Schuringa conceptualised ASYMmetric with the goal of creating and protecting wealth for investors regardless of the overall direction of the market. After working with UHNW and institutional investors for years, Schuringa writes that he wanted to bring their sophisticated methodology to all investors. He did so by developing the firm’s proprietary ASYMmetric Smart Technology, which measures overall market risk using proprietary indicators, reducing portfolio risk as market risk rises in order to preserve capital.
Today, ASYMmetric writes that it is applying its Smart Technology to two new strategies, designed to generate income and alpha, respectively.
● ASYMmetric Smart Income ETF (NYSE: MORE) is a passive, rules-based fund developed to produce more income with less risk, the firm says. The fund seeks to generate more than 2x the income of the S&P 500 with less risk. Without using derivatives or leverage, the ASYMmetric Smart Income ETF dynamically manages investment exposure in both bull and bear markets. The fund uses smart screens and momentum indicators to identify high income equities in a bull market to maximise secure income, while protecting investors’ principal in a downturn by allocating to Treasuries or cash. It is ideal for conservative investors who are seeking high current income.
● ASYMmetric Smart Alpha S&P 500 ETF (NYSE: ZSPY) is a passive, rules-based fund engineered to provide better returns with the same risk, the firm says. The fund seeks to generate 2x the returns of the S&P 500 with no additional risk over a market cycle. The ASYMmetric Smart Alpha S&P 500 ETF maximises alpha by using leverage in a bull market, while relying on hedging strategies to protect and potentially grow assets in a bear market. The ASYMmetric Smart Alpha S&P 500 ETF is a brand new take on leveraged ETFs and provides investors more of what they are looking for from leverage – greater upside – and less of what they don’t want, which is amplified downside, the firm says. The fund addresses the weaknesses of traditional leveraged products, which are often limited to daily returns, by offering leveraged period returns. It accomplishes this by offering 2x leveraged exposure to the S&P 500 in a bull market and reducing exposure as market risk starts to rise to protect capital and potentially profit in a bear market by being short the S&P 500.
“At ASYMmetric, we believe all investors should have the opportunity to preserve and compound their wealth, not just those with access to expensive trading tools and institutional investment teams,” says Schuringa. “Current market volatility is making investors seasick. Smoothing out returns and minimising risk is good for everyone; investors are able to sleep better at night and advisors will have happier clients and less volatile fees.”
One of the few former hedge fund managers bringing new ETFs to market, Schuringa is serious about delivering his best solutions to Main Street investors.
“We’re not interested in watering down the approach we use for UHNW investors and institutions. Solutions that minimise volatility while maximising returns are good for every investor,” he says. “We’re simply making “Smart Money” solutions available to everyone.”