| Investment Objective: |
The ZEGA Buy and Hedge ETF (ZHDG) is an actively-managed exchange-traded fund ( ETF ) that seeks to provide exposure to the U.S. large capitalization equity market, while mitigating overall market downside risk in the event of a major market decline. To achieve its investment objective, ZHDG invests in a combination of S&P 500 index options as well as fixed income or other income producing securities. The portion of the portfolio invested in equity index options provides long-term exposure to the equity markets, seeking upside potential while mitigating downside risk. The portion of the portfolio invested in yield-bearing positions seeks cash generation to purchase the equity options. ZHDG aims to limit equity losses to 8-10% in any 12-month period. The total portfolio may still experience losses in excess of the 8-10% target range over a 12-month period. The underlying yield-bearing investments may experience losses, but ZHDG seeks to limit those losses to 10% through its investments in purchased put options. |
