These 3 new ETFs provide investors exposures with downside protection
Simplify Asset Management is applying its downside hedge strategy to a trio of new ETFs.
These products are actively managed ETFs primarily holding other ETFs that invest 80% of holdings in their target market segment. The remaining 20% of assets are invested in put options against a different ETF in the same market segment, which would minimize losses or profits in the event of a turndown in that segment in exchange for lagging returns in the event of a quiet or bullish period.
Global market volatility is likely to remain a fact of investors' lives for the foreseeable future, amidst geopolitical uncertainty, diverging Central Bank policies, inflation concerns and a number of other key factors."
--- Paul Kim, CEO & Co-Founder of Simplify, stated.
--- Paul Kim, CEO & Co-Founder of Simplify, stated.
With these new funds and others already in our fund family, we're working to provide a complete toolset for investors in domestic and international equities to build and maintain a diversified portfolio with added opportunity for downside convexity."
--- Kim also added.
--- Kim also added.
Would you buy in these ETFs to protect your portfolio?![]()
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Source: Business Wire, Simplify Asset Management, ETF.com
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Mama Cass : Yes, I'll buy in. I try to keep a balanced portfolio with aggressive growth and more stable investment vehicles since I'm 55.
Since I started investing in the '80's I've consistently included mutual funds and other investments that spread the risk across multiple companies stocks.
This variety has blessed me with returns that have given me a six figure retirement annual income from investments alone.
Dmo213 Mama Cass: I’d love to learn your process if you’re willing to teach.
Mama Cass : Sure! I'm not sure about your situation of course, but I wasn't making much money in my early 20's.
I started out researching mutual funds, chose an aggressive growth fund thru Twentieth Century and Fidelity. I contributed $25 per month to each since that was all I could afford.
I worked for AT&T so I invested in their 401k which gave a 6% match in company stock.
If you work for a company that offers a 401k start there!
Tell me a bit about yourself and what you'd like to do. your goals, etc.
I took every test there was to determine my risk tolerance/aversion. I also planned aggressive growth in my youth, gradually moving towards principal protection as I got older.
I'd love to chat anytime.