The Day Hagan Smart Buffer ETF (DHSB) aims to achieve sustained capital growth over time while safeguarding investors' initial principal. It actively allocates capital to U.S. stocks and exchange-traded funds (ETFs). Concurrently, the fund employs a sophisticated options strategy, including individual options and spreads, directly on these underlying holdings. This dual approach serves both to generate supplementary income and to mitigate potential downside risks. The portfolio is structured to offer comprehensive, broad-market exposure across the entire U.S. equity landscape. At its core, the fund's options strategy is two-pronged. First, it involves selling covered call options on up to 100% of its U.S. equity positions, primarily to generate premium income. Second, a segment of this generated premium is then strategically deployed to acquire near-at-the-money put options or put spreads on the identical equity portfolio. This second component is crucial for hedging purposes, effectively acting as a buffer against potential declines in the value of the underlying stocks. A direct consequence of this protective hedging approach is that investors should anticipate a ceiling on their potential upside returns. The fund's advisor retains the flexibility to fully or partially adjust, or even suspend, the options overlay strategy, contingent on prevailing market conditions. Detailed information regarding the fund's specific buffer level and daily return cap is readily available on the issuer's official website.

Day Hagan Smart Buffer ETF

The fund is an actively managed ETF that, under normal circumstances, seeks to achieve its investment objective principally by investing in U.S.-listed exchange-traded funds that replicate the performance of broad-based U.S. equity indexes, equity securities of companies within such indexes, and utilizing options and/or options “spreads” on U.S. equity investments. The fund is non-diversified.

DHSB Holdings & Sector Breakdown

DHSB Holdings & Sector Breakdown