The Quadratic Interest Rate Volatility and Inflation Hedge ETF (QDEC) is managed by Quadratic Capital Management LLC, an investment firm focused on quantitative investment strategies. QDEC employs a unique investment approach by using Flexible Exchange® Options (FLEX Options) to provide exposure to the performance of the Invesco QQQ TrustSM, Series 1, which tracks the Nasdaq-100 Index®. Invesco Capital Management LLC serves as the sponsor of the underlying ETF, which seeks to mirror the price and yield performance of the Nasdaq-100 Index®, composed of 100 of the largest non-financial companies listed on the Nasdaq Stock Market. QDEC's strategy includes a target outcome approach, which aims to offer predefined investment results based on the Nasdaq-100 Index® performance over specific timeframes, with features such as downside protection and upside participation caps.
The QDEC ETF, while primarily designed to track the performance of companies in the technology and consumer discretionary sectors, also offers a dividend distribution to eligible investors. Dividends from QDEC are typically paid on a quarterly basis, reflecting the dividend policies and performance of the underlying index constituents. Investors interested in tech and consumer-focused companies with the potential for both capital appreciation and dividend returns may find QDEC an appealing investment option.
Tracking the Invesco QQQ TrustSM, Series 1, the Quadratic ETF - Interest Rate Volatility Tracker (QDEC) employs a unique strategy centered around Flexible Exchange® Options (FLEX Options). These FLEX Options are customized contracts tied to the price performance of the Invesco QQQ TrustSM, Series 1 (the Underlying ETF). By using FLEX Options, which can be tailored to exercise prices, styles, and expiration dates, QDEC aims to achieve specific investment outcomes over a predefined Target Outcome Period. QDEC's investment approach involves managing a balance between a cap and a buffer. During the Target Outcome Period, if the Underlying ETF appreciates, QDEC seeks to provide upside participation up to a predetermined cap, factoring in fees and expenses. Conversely, if the Underlying ETF's price decreases, QDEC strives to shield investors from the initial 10% of losses through the buffer. However, if the Underlying ETF's losses exceed 10%, QDEC will experience corresponding losses on a one-to-one basis. This ETF is designed for investors looking to manage risk and potentially enhance returns within their portfolios through a disciplined options-based strategy.
The correlation aspect of the QDEC ETF is essential for investors to understand its behavior relative to the Nasdaq-100 Index®. As QDEC primarily invests in FLEX Options referencing the performance of the Invesco QQQ TrustSM, Series 1 (the Underlying ETF), its correlation with the Underlying ETF is expected to be high under normal market conditions. This correlation can provide investors with insights into how QDEC performs in relation to the Nasdaq-100 Index®, making it a useful tool for those seeking exposure to this index. Investors interested in studying these correlations and exploring deeper insights into QDEC's behavior can utilize the ETF insider web app, which offers a user-friendly visualization tool to analyze correlations with other US ETFs, helping investors make informed decisions and identify potential market trends and overlaps.
The QDEC ETF, under normal market conditions, primarily invests in Flexible Exchange® Options (FLEX Options) referencing the price performance of the Invesco QQQ TrustSM, Series 1 (the Underlying ETF). FLEX Options are customized equity or index option contracts, offering investors the ability to tailor key contract terms. The Underlying ETF replicates the Nasdaq-100 Index®, composed of 100 large domestic and international non-financial companies listed on the Nasdaq Stock Market. QDEC employs a target outcome strategy, aiming to provide predefined investment results based on the Underlying ETF's performance, offering a buffer against losses and a cap on potential gains over specific Target Outcome Periods. However, investors should note that the cap and buffer may change for each period based on market conditions, and the fund is classified as non-diversified under the Investment Company Act of 1940.
The exposure characteristic of the Innovator S&P 500 Downside Hedged ETF (QDEC) is intricately tied to its strategy of utilizing FLEX Options referencing the SPDR® S&P 500® ETF Trust (the Underlying ETF). QDEC is designed to provide investors with a unique approach to investing in the S&P 500 Index, seeking to limit downside losses while offering potential upside returns. With its focus on options contracts and market conditions, QDEC offers a distinctive way to navigate the U.S. equity market, appealing to those looking for risk-managed exposure to one of the most prominent stock market indices in the world.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
5 min readThe QDEC ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the QDEC ETF.
4 min readCompare the JJA and VEGI ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
5 min readCompare the FXE and UUP ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
