Investments in foreign securities (non-U.S. Changes in ratings of the underlying debt securities could lead to unexpected credit risk and affect the value of an invest in that issuer. Investment-grade refers to a higher level of confidence by ratings agencies that the issuer will beable to make its principal and interest payments. Also, when interest rates fall, certain obligations may pre-paid more quickly than originally anticipated, and the proceeds may have to be invested in securities with lower yields. As interest rates rise, the market value of fixed income securities tends to decrease. Fixed income securities are subject to interest rate risk where the value of fixed income securities will change inversely with changes in interest rates. The Fund primarily invests in investment-grade fixed income securities indirectly through investments in underlying bond ETFs which may result in higher fees and duplicative expenses. The Fund could experience a loss if its options do not perform as anticipated. Options can be volatile and amplify risks. Options are financial derivatives that give buyers the right, but not the obligation, to buy (call) or sell (put) an underlying asset at an agreed-upon price and date. The Aptus Defined Risk ETF invests in options and may be subject to the risk of losing all or part of the cash paid (premium) for purchasing options. The Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those in the financial sectors.
#APTUS CAPITAL ADVISORS PLUS#
(Generally the amount of premium paid plus losses also extend to the fees and charges involved with options trading.)Īptus believes that a basket of options provides sporadic asymmetry that an option on a basket doesn’t – increasing potential return and lowering potential risk. In theory, asymmetric because when owing call options potential upside is unlimited while your downside is known. In addition to the traditional investment grade bond allocation through roughly 90% of the portfolio, 5%-9% of the portfolio is allocated to an Aptus area of specialty – what they like to call the sporadic asymmetry of options.Īptus refers to this as sporadic because they believe a number of individual bets that are independent of each other will help increase both portfolio diversification and upside opportunities vs. Because Aptus sees fixed income investing as a major issue for investors in a low intereste rate environment, they use a “bond plus” approach, combining laddered bonds with asymmetric options exposure. Fact Sheet | Investment Case | Video IntroductionĭRSK is unique in how it approaches an investor’s bond allocation.