XTR

📎 Investment Objective

The Global X S&P 500 Tail Risk ETF (XTR) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Tail Risk Index.

✨ Key Features

• Seeks to provide downside protection during market declines by investing in options and other derivatives
• Tracks the S&P 500 Tail Risk Index, which is designed to measure the performance of a portfolio of options that aims to provide returns during periods of significant market downturns
• Low expense ratio of 0.00%
• Relatively new fund with limited performance history

⚠️ Primary Risks

• Derivative risk: The fund's use of derivatives, such as options, exposes it to the risk of counterparty default and the potential for greater losses than if the fund invested directly in the underlying assets
• Volatility risk: The fund's focus on tail risk protection may result in periods of high volatility, particularly during stable or rising markets
• Tracking error risk: The fund may not perfectly track the performance of its underlying index due to factors such as fund expenses and transaction costs
• Limited performance history: As a new fund, XTR has a limited track record, making it difficult to evaluate its long-term performance and suitability

👤 Best For

The Global X S&P 500 Tail Risk ETF may be suitable for investors seeking downside protection during significant market declines, as part of a diversified portfolio. However, due to the fund's limited performance history and focus on tail risk protection, it may not be appropriate for all investors, particularly those with a low risk tolerance or a shorter investment horizon.