Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 11/07/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
18.6%
1 yr return
25.7%
3 Yr Avg Return
8.8%
5 Yr Avg Return
N/A
Net Assets
$330 M
Holdings in Top 10
101.2%
Expense Ratio 0.54%
Front Load N/A
Deferred Load N/A
Turnover N/A
Redemption Fee N/A
Standard (Taxable)
N/A
IRA
N/A
Fund Type
Exchange Traded Fund
Name
As of 11/07/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Principal Investment Strategies: The Adviser seeks to achieve the Fund’s investment objective by investing primarily in equity securities and applying an option overlay known as a “put/spread collar” strategy.
Equity Strategy
The Fund has adopted a non-fundamental policy that, under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities, primarily by purchasing exchange-traded funds (“ETFs”) that seek to track the investment results of the S&P 500 Index. The Fund typically invests at least 80% of the Fund’s portfolio in underlying ETFs. The Adviser does not frequently trade ETFs but seeks to maintain consistent exposure to the S&P 500 Index.
Put/Spread Collar Strategy
The Fund also purchases and sells exchange traded put options and sells exchange traded call options in the execution of an option overlay strategy known as a “put/spread collar” strategy. Up to twenty percent of the Fund’s net asset value will be subject to the “put/spread collar” strategy. The options used are based either on the S&P 500 Index itself or ETFs that seek to replicate the S&P 500 Index (“S&P 500 ETFs”). This strategy seeks to provide investors with downside protection from the put options as well as income from the index call options in an effort to reduce the risk and volatility associated with typical long-only equity strategies. If the Fund purchases a call option, the Fund has the right, but not the obligation, to buy a stock or other asset at a specified price (strike price) within a specific time period. If the Fund purchases a put option, the Fund has the right, but not the obligation, to sell a stock or other asset at a specified price (strike price) within a specific time period.
The Fund creates a put/spread collar by buying a put option on the S&P 500 Index or an S&P 500 ETF at a higher strike price and selling a put option on that index or ETF at a relatively lower strike price, resulting in what is known as a put option spread. At the same time, the Fund will sell a call option on the S&P 500 Index or an S&P 500 ETF. The Fund may determine to create more than one put/spread collar as Fund assets increase. The put option spread is generally maintained so that the Fund is protected from a decrease in the market (as measured by the S&P 500 Index) of five to twenty percent. The options are reset on at least a quarterly basis to respond to current market conditions. The Adviser utilizes a five to twenty percent range in order to align with other similar low volatility strategies. The put option spread is a strategic, persistent exposure meant to hedge against a portion of market declines. If the market goes down, the Fund’s returns may fall less than the market because the Adviser will sell or exercise the put options. The value of the Fund’s put options is expected to decrease in proportion to the decrease in value of the underlying assets, but the amount by which the Fund’s options increase or decrease in value depends on how far the market has moved from the time the options position was initiated and the relative strike prices of the purchased and sold put options. By selling call options in return for the receipt of premiums, the Fund will give up the opportunity to benefit from potential increases in the value of the S&P 500 ETFs above the exercise prices of such options. By purchasing put options in return for the payment of premiums, the Fund may be protected from a significant decline in the price of the S&P 500 ETFs if the put options become in the money (where the put option’s strike price is greater than the market price of the underlying asset), but during periods where the S&P 500 ETFs appreciate, the Fund will underperform due to the cost of the premiums paid and the increased value of call sold.
The put/spread collar seeks to protect the Fund against a decline in value, and its execution tends to be less expensive than a strategy of only purchasing put options. The premiums received from writing index call options are designed to provide income, and those premiums can help offset the cost of the put option spread. Any savings generated between the premiums received from writing index call options and the premiums of the put options are passed on to shareholders. This strategy, however, provides investors less downside risk when there is only a small decline in the price of the stock. This is because the protection offered by the collar is limited to the extent of the difference between the strike prices of the put option purchased and the put option sold. This means that the strategy will not be effective as a strategy of put options only would be in protecting the Fund from steeper declines. On the other hand, the use of call options limits the Fund’s ability to profit from increases in the value of its equity portfolio because when markets are rising, the call option will likely be exercised once the market price rises to the option’s strike price.
Use of Futures. In addition to the use of options in the put/spread collar strategy described above, the Fund may use futures contracts (derivative contracts that obligate the buyer or seller to transact at a set price and predetermined time), primarily futures on indexes, to more effectively gain targeted equity exposure from its cash positions and to hedge the Fund’s portfolio if it is unable to purchase or write the necessary options for its overlay strategy.
Period | HEQT Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 18.6% | -51.8% | 22.1% | 92.70% |
1 Yr | 25.7% | -58.9% | 46.9% | N/A |
3 Yr | 8.8%* | -25.7% | 197.6% | N/A |
5 Yr | N/A* | -29.1% | 93.8% | N/A |
10 Yr | N/A* | -17.2% | 37.0% | N/A |
* Annualized
Period | HEQT Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 11.9% | -69.4% | 53.7% | N/A |
2022 | -11.7% | -94.0% | 152.6% | N/A |
2021 | N/A | -13.9% | 183.6% | N/A |
2020 | N/A | -18.2% | 8.9% | N/A |
2019 | N/A | -80.2% | 35.2% | N/A |
Period | HEQT Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 18.6% | -97.2% | 22.1% | 93.28% |
1 Yr | 25.7% | -58.9% | 67.6% | N/A |
3 Yr | 8.8%* | -25.7% | 197.6% | N/A |
5 Yr | N/A* | -28.1% | 93.8% | N/A |
10 Yr | N/A* | -11.8% | 37.0% | N/A |
* Annualized
Period | HEQT Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 16.6% | -69.4% | 53.7% | N/A |
2022 | -8.2% | -94.0% | 152.6% | N/A |
2021 | N/A | -13.9% | 183.6% | N/A |
2020 | N/A | -12.8% | 8.9% | N/A |
2019 | N/A | -60.0% | 35.2% | N/A |
HEQT | Category Low | Category High | HEQT % Rank | |
---|---|---|---|---|
Net Assets | 330 M | 177 K | 1.21 T | 89.62% |
Number of Holdings | 11 | 2 | 4154 | 98.96% |
Net Assets in Top 10 | 171 M | 1.74 K | 270 B | 80.77% |
Weighting of Top 10 | 101.24% | 1.8% | 100.0% | N/A |
Weighting | Return Low | Return High | HEQT % Rank | |
---|---|---|---|---|
Stocks | 101.31% | 0.00% | 130.24% | 26.07% |
Preferred Stocks | 0.00% | 0.00% | 2.23% | 56.57% |
Convertible Bonds | 0.00% | 0.00% | 5.54% | 54.50% |
Cash | 0.00% | -102.29% | 100.00% | 71.65% |
Bonds | 0.00% | -0.04% | 95.81% | 54.50% |
Other | -1.31% | -13.91% | 134.98% | 56.78% |
Weighting | Return Low | Return High | HEQT % Rank | |
---|---|---|---|---|
Utilities | 0.00% | 0.00% | 25.44% | 28.71% |
Technology | 0.00% | 0.00% | 48.94% | 47.55% |
Real Estate | 0.00% | 0.00% | 37.52% | 49.09% |
Industrials | 0.00% | 0.00% | 29.90% | 69.47% |
Healthcare | 0.00% | 0.00% | 60.70% | 47.62% |
Financial Services | 0.00% | 0.00% | 55.59% | 50.91% |
Energy | 0.00% | 0.00% | 41.64% | 31.37% |
Communication Services | 0.00% | 0.00% | 27.94% | 39.29% |
Consumer Defense | 0.00% | 0.00% | 49.14% | 47.97% |
Consumer Cyclical | 0.00% | 0.00% | 50.47% | 50.77% |
Basic Materials | 0.00% | 0.00% | 26.10% | 54.48% |
Weighting | Return Low | Return High | HEQT % Rank | |
---|---|---|---|---|
US | 101.31% | 0.00% | 127.77% | 22.82% |
Non US | 0.00% | 0.00% | 33.51% | 62.72% |
HEQT Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.54% | 0.01% | 2.95% | 67.57% |
Management Fee | 0.50% | 0.00% | 2.00% | 47.79% |
12b-1 Fee | N/A | 0.00% | 1.00% | 13.79% |
Administrative Fee | N/A | 0.00% | 0.85% | N/A |
HEQT Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 0.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
HEQT Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 0.25% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
HEQT Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | N/A | 0.00% | 496.00% | N/A |
HEQT | Category Low | Category High | HEQT % Rank | |
---|---|---|---|---|
Dividend Yield | 1.08% | 0.00% | 19.15% | 33.52% |
HEQT | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Quarterly | Annually | Quarterly | Annually |
HEQT | Category Low | Category High | HEQT % Rank | |
---|---|---|---|---|
Net Income Ratio | N/A | -54.00% | 6.06% | N/A |
HEQT | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Sep 25, 2024 | $0.080 | OrdinaryDividend |
Jun 25, 2024 | $0.100 | OrdinaryDividend |
Mar 25, 2024 | $0.100 | OrdinaryDividend |
Dec 26, 2023 | $0.797 | OrdinaryDividend |
Sep 27, 2023 | $0.080 | OrdinaryDividend |
Jun 27, 2023 | $0.080 | OrdinaryDividend |
Mar 27, 2023 | $0.080 | OrdinaryDividend |
Dec 27, 2022 | $0.808 | OrdinaryDividend |
Jun 27, 2022 | $0.080 | OrdinaryDividend |
Dec 27, 2021 | $0.069 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Nov 01, 2021
0.58
0.6%
David Berns, PhD, is the chief investment officer and co-founder of the Simplify Asset Management Inc. Prior to co-founding the Simplify Asset Management in 2020, he founded Portfolio Designer, LLC, a company that specializes in portfolio design and from 2018 to 2019 was a managing director at Nasdaq Dorsey Wright. Prior to joining Nasdaq Dorsey Wright, Inc., he founded and developed a company that specializes in proprietary trading. He has specialized in developing asset allocation, portfolio management, and risk management systems for managing private and institutional wealth. Mr. Berns has a PhD in Physics from the Massachusetts Institute of Technology in the field of Quantum Computation.
Start Date
Tenure
Tenure Rank
Nov 01, 2021
0.58
0.6%
Michael Green is the managing director and chief strategist of Simplify Asset Management Inc. Prior to joining Simplify Asset, Michael served as partner, chief strategist and portfolio manager of Logica Capital Advisers, LLC, a Los Angeles-based hedge fund focused on derivative strategies from 2020 to 2021. Prior to Logica, Michael was portfolio manager for Thiel Macro, LLC, an investment firm that manages the personal capital of Peter Thiel from 2016 to 2019. Prior to Thiel, Michael founded Ice Farm Capital, a discretionary global macro hedge fund seeded by Soros Family Management.
Start Date
Tenure
Tenure Rank
Nov 01, 2021
0.58
0.6%
Paul S. Kim has been with PGI since 2015. Previously, he was a senior vice president at PIMCO from 2009-2015. He earned a bachelor’s degree in Economics from Dartmouth College and an M.B.A. in Finance from The Wharton School at the University of Pennsylvania. Mr. Kim has earned the right to use the Chartered Financial Analyst designation.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 39.02 | 7.17 | 2.42 |
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