Simplify Hedged Equity ETF

HEQT

Market cap $308M

HEQT offers a compelling hedged equity solution for investors seeking S&P 500 exposure with reduced downside risk and volatility. The fund uses a laddered put/spread collar options strategy, providing protection against 5-20% market declines while maintaining capital appreciation potential. HEQT outperforms the S&P 500 and other hedged ETFs in risk-adjusted returns and has a low expense ratio among peers.

Paisley Nardini, Simplify Asset Management managing director and portfolio manager, and Dave Nadig, financial futurist, join Dom Chu on “ETF Edge” to talk about new investor optimism, ETFs adopting a hedge fund- like strategy and what these funds can do for investors now.

Investors should consider applying hedging techniques to their equity portfolio to reduce overall volatility.

CCOR, BALT, XRMI, PHDG and HEQT are included in this Analyst Blog.

Investors seeking to remain invested in the equity world with downside protection should invest in low-beta ETFs.

HEQT, a collar strategy ETF, delivered a 20% return in the past year but is now rated 'Hold' due to high S&P 500 P/E ratios. Collar funds like HEQT hedge the downside by selling call options and buying put spreads, capturing 60%-80% of the index's upside and minimizing losses during downturns. HEQT's laddered rolling collar strategy outperforms peers like PJAN in up markets but carries a higher risk and reward.

NEW YORK--(BUSINESS WIRE)--Simplify announced today that it expects to deliver capital gains distributions across six Simplify ETFs.

HEQT ETF provides conservative investors with equity exposure while limiting downside risks through put-spread collars. The fund has delivered a solid 17% in total returns since October. Although HEQT has underperformed the S&P 500, this is to be expected. With market valuations at extended levels, I believe conservative investors should look at alternatives like HEQT to protect their portfolios against market drawdowns.

Investors may remain invested in the equity world with some downside protection by investing in low-beta ETFs.

Volatility has risen in recent weeks amid the tech sell-off and upcoming elections. Investors should apply some hedging techniques to their equity portfolio to reduce the overall volatility or protect against significant market downturns.