The ETF also uses a covered call options strategy to generate more gains. Simpson contends it can increase capital appreciation potential while still minimizing risk exposure.
"The covered call piece is implemented as a means of harvesting volatility to protect a little bit of the downside," he said. "We tactically sprinkle in some short-term, out of the money covered calls." When asked about whether selling covered calls forfeits upside reward potential, Simpson claims there's a balance at play.
"We're thinking about how can we capture 80% to 90% of the rising market and limit the drawdown in the participation in a down-market to 65% or 75%," he said. "Covered calls work best when you need them ... [the] most."
हमने इस समाचार को संक्षेप में प्रस्तुत किया है ताकि आप इसे तुरंत पढ़ सकें। यदि आप समाचार में रुचि रखते हैं, तो आप पूरा पाठ यहां पढ़ सकते हैं। और पढो: