Megaphone icon ETF Database is now VettaFi. Read More >
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. Thematic Investing Channel
  2. XTR Has Downside Protection Amid S&P 500 Volatility
Thematic Investing Channel
Share

XTR Has Downside Protection Amid S&P 500 Volatility

Ben HernandezFeb 24, 2022
2022-02-24

“Bear market territory” are words that investors are seeing these days. With that kind of vernacular circulating in the financial markets, it’s necessary to add a hedging strategy to any portfolio.

The latest market movements make an even stronger case for adding strategies that can help with easing volatility, especially in the form of sell-off pressures. At the same time, when market stress eases, capturing upside is also a must.

Right now, however, getting downside protection is almost imperative. The latest geopolitical news regarding Russia’s invasion of Ukraine is just one of the reasons.

“Investors should expect strong sanctions imposed on Russia, which will slow growth and leave upward pressure on commodity prices,” wrote Dennis DeBusschere of 22V Research, according to a CNBC report. “How long this crisis takes to unfold will determine how much inflation, financial conditions, and growth will be impacted. Short-term, a flight to safety means Treasury yields, rate hike expectations and risk assets are sharply lower.”

Hedging With 1 ETF

Investors can get hedging strategies with exposure to the broad market S&P 500 using one ETF: the Global X Funds – Global X S&P 500 Tail Risk ETF (XTR). The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P 500 Tail Risk Index.

XTR employs a protective put strategy for investors seeking to buffer against market sell-offs. XTR seeks to achieve this outcome by owning the stocks in the S&P 500 Index, coupled with buying 10% out-of-the-money put options on the S&P 500 Index.

Overall, XTR offers:

  • Growth potential: XTR offers uncapped exposure to the growth potential of the stocks in the S&P 500 Index.
  • Managed downside risk: By buying protective puts, XTR seeks to mitigate significant sell-offs of greater than approximately -10% from the purchase of the put to the options’ expiration in three months.
  • Efficient options execution: XTR buys put options on the S&P 500, saving investors the time and potential expense of doing so individually.

For more news, information, and strategy, visit the Thematic Investing Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact 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