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Swan Global Investments Launches Hedged Equity ETF to Help More Investors Manage Risk and Optimally Structure Their Portfolios

·6 min read

New ETF, The SWAN HEDGED EQUITY LARGE CAP ETF (Ticker: HEGD), Aims to Address Investors’ Need for Capital Appreciation While Mitigating Overall Market Risk

Differentiated Solution Combines Benefits of Low-Cost, Passive Investing1 With an Actively Managed Hedging Strategy

Swan Global Investments ("Swan"), a specialized asset management firm with a 20-year track record in hedged equity solutions, today announced the launch of the Swan Hedged Equity Exchange-Traded Fund ("HEGD"). HEGD is the first Exchange-Traded Fund ("ETF") launched by Swan Global Investments. It was created to help long-term investors participate in the equity markets for capital appreciation, while hedging against the risks and volatility associated with today’s often turbulent markets.

HEGD is anchored by Swan’s proprietary Defined Risk Strategy ("DRS"), which is a time-tested, disciplined approach that utilizes hedged equity and options-based strategies seeking to help investors grow their capital while also seeking to mitigate market risk. HEGD pairs the benefits of passive investing2 in equity index ETFs with actively managed options strategies, potentially resulting in a less volatile investment experience and more consistent returns.

"Twenty years ago, we sought to fill a white space in the market with our Defined Risk Strategy, which has helped many investors reach their long-term goals despite market swings. Today, we are once again directly addressing the needs of both investors and their advisors with the launch of our Hedged Equity ETF," said Randy Swan, Founder and Lead Portfolio Manager of Swan Global Investments. "The culmination of the current low-yield environment, an aging population and the significant shift toward options-based strategies has led us to create an easy-to-utilize ETF that will further democratize access to Swan’s DRS and continue our mission of helping investors stay on track by remaining always invested and always hedged."

ETFs have enjoyed significant growth over the past decade, largely due to their easy-to-use, low-cost nature. Financial advisors, in particular, are increasingly shifting their clients toward ETFs to provide them with liquidity, transparency and a tax efficient way to invest their capital. In addition, ETFs facilitate incorporating and reconciling options-based strategies in Unified Managed Account (UMA) platforms.

Mr. Swan concluded: "The time is now for advisors to reconsider how they can best allocate clients’ irreplaceable capital to seek real, after-tax returns while attempting to mitigate risks. The typical 60-40 portfolio of stocks and bonds is ill-positioned going forward to repeat its returns of previous decades with bond yields near historic lows. Many investors may be unwilling to settle for low yields or high levels of unprotected risk. Our new ETF is a potential solution for the new investing landscape."

To learn more about the Swan Hedged Equity ETF, visit etfs.swanglobalinvestments.com.

About Swan Global Investments

Founded in 1997, Swan Global Investments is a leading asset management firm that offers time-tested goals-based investment solutions that have produced consistent long-term returns over time, by prioritizing the pursuit of preserving investors’ irreplaceable capital. There is no guarantee of performance, nor that the Fund will meet its objective or perform as other investment products Swan Global Investments manages.

Swan Global Investments is an SEC registered Investment Advisor that specializes in managing money using the proprietary Defined Risk Strategy (DRS). Please note that registration of the Advisor does not imply a certain level of skill or training. All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance that future performance will be comparable to past performance. This communication is informational only and is not a solicitation or investment advice. Further information may be obtained by contacting the company directly at 970-382-8901 or swanglobalinvestments.com. SWGI-20201203-0003


Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Hedged Equity US Large Cap ETF. This and other information is contained in the prospectus and should be read carefully before investing. A copy of the prospectus is available by calling 866-617-7926.

Exchange Traded Funds and Mutual Funds involve risk, including possible loss of principal. There is no guarantee the Fund will meet its objective. The fund will use put and call options, which are referred to as "derivative" instruments since their values are based on, or derived from, an underlying reference asset, such as an index. Derivatives can be volatile, and a small investment in a derivative can have a large impact on the performance of the Fund as derivatives can result in losses in excess of the amount invested. Options used by the Fund to reduce volatility and generate returns may not perform as intended. There can be no assurance that the Fund’s option strategy will be effective. It may expose the Fund to losses, e.g., option premiums, to which it would not have otherwise been exposed. Further, the option strategy may not fully protect the Fund against declines in the value of its portfolio securities. The prices of options may change rapidly over time and do not necessarily move in tandem with the price of the underlying securities. Selling call options reduces the Fund’s ability to profit from increases in the value of the Fund’s equity portfolio and purchasing put options may result in the Fund’s loss of premiums paid in the event that the put options expire unexercised. To the extent that the Fund reduces its put option holdings relative to the number of call options sold by the Fund, the Fund’s ability to mitigate losses in the event of a market decline will be reduced. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.

Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

The Fund is distributed by Quasar Distributors, LLC member FINRA / SIPC. Quasar Distributors, LLC and Swan Capital Management, LLC & Swan Global Investments, LLC are not affiliated. SWGI-20201203-0003

1,2 Although the Fund is actively managed, the Fund intends to passively invest (buy and hold) at least 80% of its assets directly or indirectly through one or more ETFs in equity securities of large cap U.S. companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201223005045/en/


For Media:
Ashley Areopagita, 347-774-4108