Complex Strategies Made Simple: Derivative Strategies in ETFs
Discover how integrating ETFs with derivative strategies can potentially manage risk and elevate returns.
Did you know that ETFs may be integrated with derivative strategies to potentially manage portfolio risk and enhance returns for your firm?
You may have a complex strategy, but don’t let that scare you off from creating your own ETF. Let us evaluate how your strategy would look as an ETF. If you are interested in getting guidance for your next ETF, let's talk strategy.
Derivative-type strategies involve the use of financial instruments like options, futures, swaps, and forwards to potentially manage risk, speculate, or increase leverage in an investment portfolio.
Key Derivative Strategies in ETFs
- Leveraged and Inverse ETFs: These ETFs use derivatives to potentially enhance the returns of an underlying index or provide the inverse of its performance, respectively.
- ETFs Employing Options Strategies: Some ETFs use options strategies, such as covered calls, to generate potential additional income or protective puts to hedge against possible downside risk.
- Futures-based ETFs: These ETFs might use futures contracts to gain exposure to commodities or other asset classes without directly holding the assets.
To explore creating a custom ETF that utilizes your derivative strategy, contact ETC to schedule a strategy discussion.
ETF-in-a-Box™
Our turnkey platform provides the complete infrastructure needed to transform your investment idea into a live strategy. Work with our experienced team to bring your ETF to market in as little as 3 months. Let ETC handle all the details while you build interest in your intellectual property and identify capital to fund your ETF idea.
