Constancy Investments has launched three actively managed ETFs: The Constancy Dynamic Buffered Fairness ETF (ticker FBUF), Constancy Hedged Fairness ETF (FHEQ) and Constancy Yield Enhanced Fairness ETF (FYEE).

The choices-based ETFs can be found commission-free to particular person traders and monetary advisors utilizing Constancy’s brokerage platforms; in addition they add to Constancy’s present $14 billion alts lineup.

“The launch of those ETFs broadens Constancy’s liquid alts providing at a time once we’re seeing elevated shopper demand for draw back safety and enhanced revenue whereas invested in fairness markets,” in line with Invoice Irving, who heads Constancy Asset Administration Options.

The choices-based fairness methods, again by Constancy’s energetic administration, search to supply danger mitigation, volatility discount or yield enhancement, Irving added.

Underlying every ETF is a typical core U.S. fairness technique that seeks to outperform the S&P 500 Index. The technique makes use of a multifactor mannequin to assist the agency choose firms with fascinating basic traits, together with enticing valuations and robust high quality metrics, Constancy stated.

The portfolio building goals to maintain the fund’s danger traits much like these of its benchmark. Every ETF combines a core fairness portfolio with an options-based overlay, looking for so as to add defensiveness or improve yield. The principle traits of the brand new funds, in line with the agency, are as follows:

• The Constancy Dynamic Buffered Fairness ETF combines call-writing and put-buying overlays to create a dynamic “collar” overlay. The ensuing technique is defensive, aiming to offer good draw back safety whereas probably giving up some upside participation.
• The Constancy Hedged Fairness ETF goals to guard towards sudden and significant market drawdowns whereas collaborating in sharp market rallies by shopping for put choices at numerous expiries and strikes; it might lag the market if there’s low volatility or the market strikes sideways.
• The Constancy Yield Enhanced Fairness ETF seeks to ship a horny distribution yield by harvesting choice premiums from dynamic lined name writing; in alternate for the upper distribution yield profit, the fund contains an upside cap on fairness portfolio efficiency if the market rallies above the decision choice strike value.

The portfolio administration group for all three ETFs contains long-tenured co-managers Eric Granat, Anna Lester, George Liu, Mitch Livstone and Shashi Naik.