XCLR

greytoc

It's neither good nor bad. Collars serve a purpose if you want to use a hedging strategy. But hedging can be a drag. I'm not really a fan of funds that use collars in a systematic way. I do trade collars but I do it manually instead of using a fund. I didn't read the XCLR prospectus, so I don't know their style or expenses. Also - I tend to think that funds like XCLR would use otc derivatives.

Thunderforge4

You might want to look into a collar fund like QCLR or XCLR. These invest in an index fund but they use options to hedge risk. They're set up to not drop more than 5% over a 3-month period, but also not go up more than 10% over that same 3-month period. Then the cycle starts over for the next 3 months. So if you're worried about a sharp fast recession, it will protect you but at the cost of missing out on any sharp fast increases. If you think that the market's likely to grind higher over time but with a risk of a deep pullback, then this would be good for you. If you're worried about a slow grind down, this wouldn't do any worse than the underlying qqq or spy funds. In my retirement 401k, I have 7.5% in QCLR, 7.5% on XCLR, and about 10% In various metals (gld, slv, and a couple of miners, rare earth, and battery ETFs). Half of my money is in the standard retirement mix account that is diversified based on my retirement year. The other 25% is in a selection of growth stocks or industries I'm interested in (like European defense firms, assisted living reits, etc). My strategy is to protect some of the gains with the collar funds, protect against the weakening dollar and stagflation with the metals, And still have exposure for long-term growth since some young. After a pullback, I would move the money out of the collar funds to capture more outside.

dabears4hss

Not quite what you are suggesting but check out QCLR and XCLR. Or do the hedge yourself.

papakong88

XCLR (S&P 500 Collar 95-110 ETF) is an ETF that uses the collar strategy. You can study its performance to find out if the strategy is for you.

AnnaGardner01

You've already hit one reason on the head, it's the lack of volume. Because XCLR is relatively unknown and doesn't have a high trade volume, it's difficult for large investors to get in and out without substantially affecting the price. In addition, the use of covered call and put options strategies may deter some investors who prefer straightforward ETFs. In a bull market, they'd likely prefer something that fully participates in the upside rather than capping gains for a bit of downside protection. And in a bear market, while the put may offer some protection, if the market drops more than 5%, they'd be fully exposed to losses unlike owning a traditional, diversified ETF.

Jjabrahams567

Or XCLR. I’m not sure exactly which strategy you want.

HeyYoChill

XCLR is -7.7% YTD while VOO is -13.8%. That's a relative win. QCLR is -8.7% YTD while QQQ is -22.6%. That's a relative win. NUSI and QQQ are about the same on price, but NUSI has a 10.3% div yield. That's a win. TAIL is the worst, but still outperforming VOO by about 3.5%. All in all, they're doing what they're supposed to do, which is mitigating risk, not eliminating it. If you wanted to go nuts on a bearish bet, SQQQ is +40.9% while QQQ is -22.6%.

HeyYoChill

XCLR--S&P 500 options collar strategy ETF (sells calls, buys puts) QCLR--NASDAQ 100 options collar ETF NUSI--NASDAQ 100 options collar TAIL--S&P 500 Put options strat (holds mainly treasuries, buys puts) XTR--S&P 500 Put options strat (holds S&P 500, buys puts)