ETFdb Logo
ETFdb Logo
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. TrueMark Launches New Structured Outcome ETF, MAYZ
News
Share

TrueMark Launches New Structured Outcome ETF, MAYZ

Aaron NeuwirthMay 03, 2021
2021-05-03

On Monday, Rosemont, IL-based asset manager TrueMark Investments launched the TrueShares Structured Outcome (May) ETF (MAYZ), the eleventh ETF in the True-Shares structured outcome product suite. MAYZ is sub-advised by SpiderRock Advisors, a Chicago-based asset management firm specializing in option overlay strategies.

The fund seeks to provide investors with structured outcome exposure to the S&P 500 Price Index. TrueMark believes its structured outcome ETF suite is the first of its kind to offer built-in downside buffers with uncapped upside participation.

MAYZ’s structure allows for the potential of an asymmetric return profile. The fund seeks to provide investors with returns (before fees and expenses) that track the S&P 500 Price Index while seeking to provide a buffer of 8-12% on that index’s losses over the fund’s one-year investment period. In practice, the fund adviser will target the buffer at 10% of index declines over the investment period following the first day of trading while also allowing for uncapped upside participation. MAYZ’s expense ratio is 0.79%.

“There is no lack of well thought out opinions regarding what lies ahead for the markets. But I think we can be reasonably sure that they won’t all be correct,” said Michael Loukas, CEO at TrueMark Investments, the Advisor to TrueShares. “Rates, inflation, tax hikes, valuations, earnings and lest we forget, the pandemic, are all factors that will create tremendous uncertainty in the coming years. Our structured outcome ETFs were created for investors who understand the importance of maintaining exposure to equities but are also keenly aware of the volatility rollercoaster that sometimes must be endured to reap gains over the long-term.”

Protective Buffers

With respect to using the downside buffers for protection, as explained by Loukas: “There are a myriad of reasons for investors to pursue volatility management strategies, or as we like to occasionally refer to it, ‘intelligent equity exposure.’ Whether it be the uncertainty of a pandemic, economic policy, the need for growth in the face of a low-yield environment, or an understanding of the non-linear nature of equity returns and the detrimental effect of withdrawals amid downturns. Simply put, a built-in downside buffer can be a valuable risk-management tool. However, MAYZ, like each installment of the TrueShares Structured Outcome Series, is designed to help address both types of volatility, downside, and upside. Thus the combination of a downside buffer with an uncapped upside participation rate.”

In detailing what TrueShares hopes to achieve initially, Loukas continued: “MAYZ is a versatile portfolio tool that can help advisors and investors maintain equity exposure in a high volatility, low-yield environment without completely disrupting their risk tolerances. We’ve certainly seen an equity rotation surface early in 2021, but there has been little indication of an end to volatility nor the bull market that surprised many back in 2020. For many investors, the need for equity exposure will persist. And while the market has continued to achieve periodic new highs, the ride has not been smooth. The TrueShares Structured Outcome ETFs represent a rational approach to intelligent equity participation while still accounting for the general unpredictability of the market.”

Loukas went on to explain that: “MAYZ is designed to help lessen the tactical burden by providing investors a single-ticker solution that can both help protect their capital from sharp declines and still offer the potential to rack up gains as the resilient bull market climbs to higher and higher ground. We accomplish this by pairing an uncapped upside structure with a protective downside buffer to create a practical tool for investors committed to harnessing the markets’ inherent positive return bias over time.”

MAYZ is the eleventh monthly series in the True-Shares Structured Outcome ETF suite. Each fund will roll into a new investment position at the end of a year-long term, at which point the downside buffer and upside participation will reset based on current pricing for the options used by the strategy for each respective ETF.


Content continues below advertisement

Holding Exposure in the Face of a Pullback

“Often time (sic), the biggest challenge with investing in a bull market is simply holding onto your exposure in the face of the occasional pullback,” said Eric Metz, fund portfolio manager, and Chief Investment Officer at SpiderRock Advisors. “Our lineup of structured outcome ETFs is built with this in mind, and we’re excited to offer investors another instrument for their toolbox that enables capital appreciation without having to sacrifice their capital preservation objectives.”

Loukas adds: “At the end of each twelve-month investment period, the underlying options position is rolled or reset to optimize the downside buffer and upside participation rate relative to the market’s position at that point in time. The process is intended to allow investors to pursue a long-term investment strategy while simplifying the moving parts involved in the approach. Most investors have a time-horizon extending out beyond one year. An annual re-optimization of the underlying position can help an investor maintain a measure of volatility management throughout the life of their equity investment time horizon. The annual buffer adjustment coupled with the uncapped upside participation rate feature should prove invaluable in helping a portfolio digest the long-term ebb and flow of the equity market.”

Finally, in terms of MAYZ’s long-term advantages, Loukas notes: “If you’ve interacted with TrueShares, or tuned into one of our webinars, you’ve likely heard us pound the table on the importance of addressing both sides of the volatility spectrum. It’s usually fairly easy to help investors understand the favorable concept of mitigating downside volatility using buffers. However, many investors tend to gloss over the detrimental effect of missing out on significant upside volatility.”

“In layman’s terms, avoiding a chunk of a down market is obviously important to long-term returns, but if it comes at the expense of missing out on big upside moves, like the bull market which emerged during the pandemic lockdowns, it can also cause irreparable damage to the long-term, compounded return potential of a portfolio. Designed to help offset ‘bad volatility’ (downside) yet still capture a significant amount of ‘good volatility’ (upside), we believe MAYZ represents an essential tool for those seeking long-term, intelligent equity exposure.”

For more information, visit www.true-shares.com.

» Popular Pages

  • Tickers
  • Articles

May 18

Sell on the Pop Prospects: May 18 Edition

May 18

Crypto Correlations Continue, Chances to Buy the Dip

May 18

ETF Leaders Powered by the NYSE: Arthur Nowak

May 18

Examining 5-Star REITs Fund VGISX

May 18

602: Innovation Moves Beyond Benchmarks | The Switch

May 18

The Collapse of Luna

May 18

Tokenomics for the Smart Investor (Part I)

May 18

The Advisor’s Guide to Variable Dividends in Midstream

May 18

New SEC Rules Highlight the Importance of Cybersecurity

May 18

Volatility ETFs Climb as Inflation, Recession Fears Grip Markets

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

WEAT

Teucrium Wheat Fund

DBA

Invesco DB Agriculture Fund

XLE

Energy Select Sector SPDR...

ARKK

ARK Innovation ETF

VTI

Vanguard Total Stock Market...

PDBC

Invesco Optimum Yield...

SCHD

Schwab US Dividend Equity ETF...


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • About Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X