DRSK | Aptus Defined Risk ETF

DRSK ISSUER

Aptus Capital Advisors presents the DRSK, an actively managed exchange-traded fund (ETF) employing a distinctive hybrid strategy integrating fixed income and equity. The Fund allocates between 75% to 95% of its assets to investment-grade corporate bonds (Fixed Income Strategy) with maturities spanning one to eight years, utilizing ETFs that track specific bond indexes. While maintaining diversification, a notable share of the Underlying Bond ETFs often features financial sector bonds. The remaining portion of assets is dedicated to U.S. stocks, focusing on small-, mid-, and large-capitalization equities through call options (Equity Strategy). Aptus employs a proprietary yield plus growth analysis to select individual equities, considering factors like yield, growth, valuation, and momentum. The Equity Strategy is managed with monthly rebalancing and employs purchased and written call options, as well as purchased and written put options, to manage risk and exposure. Additionally, the Fund may utilize options on the Cboe Volatility Index (VIX Index) as a hedge during periods of market volatility, aiming to limit maximum losses while gaining greater exposure to underlying assets than direct investment would allow. The strategic combination of fixed income and equity options provides investors with a diversified and risk-managed approach to capital appreciation.

DRSK DIVIDEND

The DRSK, managed by Aptus Capital Advisors, follows an actively managed exchange-traded fund (ETF) strategy that incorporates both fixed income and equity components. While the DRSK focuses on optimizing capital appreciation through a hybrid approach, it's important to note that the fund may not necessarily emphasize dividend income. Investors seeking regular dividend payouts may find other investment vehicles more aligned with their income objectives, as the DRSK's primary goal revolves around a dynamic blend of fixed income and equity strategies designed to achieve capital growth. Therefore, potential investors should carefully assess their income requirements and consider alternative investments if a consistent dividend stream is a key priority in their financial strategy.

DRSK TRACKING

The DRSK, managed by Aptus Capital Advisors, employs a strategic approach to tracking its performance in the market. As an actively managed exchange-traded fund (ETF), the fund utilizes a combination of fixed income and equity strategies. The fixed income component seeks exposure to investment-grade corporate bonds through ETFs that track specific bond indexes, while the equity strategy involves exposure to U.S. stocks using call and put options. The fund's tracking mechanisms involve regular rebalancing, adjusting the allocation of assets to maintain the desired balance between fixed income and equity exposure. Aptus actively manages the ETF's options holdings, responding to market movements and events to optimize the fund's risk profile. Through these dynamic strategies and periodic adjustments, the DRSK aims to effectively track its investment objectives, delivering a performance reflective of its unique blend of fixed income and equity strategies in evolving market conditions. Investors can monitor the fund's performance against its benchmark to assess its effectiveness in achieving its financial goals.

DRSK CORRELATION

The DRSK, under the management of Aptus Capital Advisors, exhibits a unique correlation profile owing to its hybrid investment strategy. This actively managed exchange-traded fund (ETF) incorporates both fixed income and equity components, creating a diversified investment approach. The correlation of the DRSK to traditional market indices may vary given its focus on investment-grade corporate bonds and U.S. stocks through options. The fixed income strategy, emphasizing a bond ladder, may show distinct correlations with interest rate movements and credit market dynamics. On the other hand, the equity strategy, employing options on individual stocks, equity indexes, and ETFs, introduces a different set of market dynamics. Investors should recognize that the correlation of the DRSK with traditional benchmarks may evolve over time, making it crucial to regularly assess the fund's performance relative to broader market trends and economic conditions. The DRSK's innovative approach seeks to manage risk and enhance returns through a blend of fixed income and equity exposure, offering investors a potentially distinctive correlation profile in their investment portfolios.

DRSK SECTOR

The DRSK, managed by Aptus Capital Advisors, demonstrates a sector-agnostic approach through its innovative investment strategy. As an actively managed exchange-traded fund (ETF), the DRSK combines fixed income and equity components to achieve its investment objectives. The fixed income strategy primarily focuses on investment-grade corporate bonds, with a notable concentration in the financial sector, providing exposure to a diversified array of bonds regardless of the fund's size. In contrast, the equity strategy seeks exposure to small-, mid-, and large-capitalization U.S. stocks through a yield plus growth framework, diversifying across various industries. Aptus actively manages the fund's options holdings, selecting individual equities based on fundamental characteristics such as yield, growth, valuation, and momentum. This unique sector-agnostic approach distinguishes the DRSK, offering investors a diversified investment vehicle that is not limited to specific sectors but rather dynamically adjusts its sector exposure based on market conditions and the Adviser's proprietary analysis.

DRSK EXPOSURE

The DRSK, managed by Aptus Capital Advisors, presents a distinctive exposure profile through its hybrid investment strategy. As an actively managed exchange-traded fund (ETF), the DRSK dynamically allocates its assets between fixed income and equity components. The fixed income strategy involves exposure to U.S. dollar-denominated investment-grade corporate bonds, utilizing ETFs that track specific bond indexes with maturities ranging from one to eight years. This fixed income exposure is further diversified, with a notable focus on the financial sector. The equity strategy seeks exposure to small-, mid-, and large-capitalization U.S. stocks through the strategic use of call and put options, allowing the fund to actively manage risk and market exposure. The combination of fixed income and equity elements provides investors with a balanced and adaptable investment approach, allowing the DRSK to navigate various market conditions while pursuing capital appreciation through a dynamic blend of asset classes. Investors can benefit from the fund's unique exposure characteristics, which aim to optimize returns and manage downside risk through a carefully crafted investment strategy.