Zega Buy & Hedge ETF
Top 10 Holdings
What is ZHDG?
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.
ETFs related toZHDG
ETFs correlated to ZHDG include BJUL, BKLC, IQSU
What is ETF correlation?
Correlation is a measure of the strength of the relationship between two ETFs. It quantifies the degree to which prices of the two ETFs typically move together.
Here, correlation is measured over the past year with the Pearson correlation coefficient (Pearon’s r), which ranges from -1 to 1.
Using ETF correlations in portfolio and strategy construction
ETF correlations can help you create investing strategies and portfolios. Use them to:
- •Build a diversified portfolio from uncorrelated or inversely correlated ETFs with the aim of minimizing portfolio risk.
- •Compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume.
- •Create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.
We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.
We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.