JD made the case that options can work better than bonds as a portfolio’s brakes, and with better brakes you can upgrade your portfolio’s engine with similar risk. Tune in for a fun discussion, and yes, some basketball talk.
Hope you enjoy, and please send a note to info@apt.us if there’s a particular topic you’d like to discuss further.
Disclosures
Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The information contained herein should not be considered a recommendation to purchase or sell any particular security.
The opinions expressed are those of the Aptus Capital Advisors Investment Team. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Forward-looking statements cannot be guaranteed.
Investing involves risk. Principal loss is possible. Facts and circumstances may vary on an individual basis and impact each investor differently. Investors should carefully consider the objectives, risks, charges, and expenses before investing.
Drawdown: A drawdown represents the measure of decline in an investment portfolio from its peak value to its lowest point, highlighting the duration and magnitude of financial loss.
A maximum drawdown (MDD) represents the largest observed decline in the value of an investment from its peak to its subsequent lowest point, before a new peak is attained.
Sharpe Ratio: The Sharpe Ratio compares the return of an investment with its risk.
Duration: Duration can measure how long it takes, in years, for an investor to be repaid a bond’s price by the bond’s total cash flows. Duration can also measure the sensitivity of a bond’s or fixed income portfolio’s price to changes in interest rates.
Aptus Capital Advisors, LLC is a Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission and is headquartered in Fairhope, Alabama. Registration does not imply a certain level of skill or training. For more information about our firm, or to receive a copy of our disclosure Form ADV and Privacy Policy call (251) 517-7198.
The fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. Important information about the fund is available at aptusetfs.com or by calling 1-800-617-0004. Read it carefully before investing.
Aptus ETFs are distributed by Quasar Distributors, LLC.
Investing involves risk. Principal loss is possible. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than diversified funds. Therefore, the Funds are more exposed to individual stock volatility than diversified funds.
The Funds invest in options, the Funds risk losing all or part of the cash paid (premium) for purchasing put and call options. The Funds’ use of call and put options can lead to losses because of adverse movements in the price or value of the underlying security, which may be magnified by certain features of the options. The Funds’ use of options may reduce the ability to profit from increases in the value of the underlying securities. Derivatives, such as the options in which the Funds invest, can be volatile and involve various types and degrees of risks. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in a derivative could have a substantial impact on the performance of the Funds. The Funds could experience a loss if its derivatives do not perform as anticipated, the derivatives are not correlated with the performance of their underlying security, or if the Funds are unable to purchase or liquidate a position because of an illiquid secondary market. Fixed Income Securities Risk. The Fund invests in fixed income securities. Fixed income securities, such as bonds, involve certain risks, which include credit risk and interest rate risk. Futures Contracts Risk. A decision as to whether, when, and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. New Fund Risk. The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision.
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