ZVOL

📎 Investment Objective

The ZVOL Volatility Premium Plus ETF seeks to provide exposure to a strategy that aims to generate returns from the volatility of the U.S. equity market.

✨ Key Features

• Provides exposure to the volatility of the U.S. equity market through a portfolio of volatility-linked instruments
• Aims to generate returns from the volatility risk premium, which is the difference between the expected future volatility and the realized volatility
• Employs a rules-based investment approach to manage the portfolio of volatility-linked instruments
• Potentially offers diversification benefits as volatility can have a low correlation to traditional asset classes

⚠️ Primary Risks

• Volatility risk: The value of the ETF's holdings can be highly volatile and may experience significant fluctuations
• Leverage risk: The use of volatility-linked instruments may introduce leverage, which can amplify gains and losses
• Liquidity risk: The underlying volatility-linked instruments may have limited liquidity, which can affect the ETF's ability to execute trades
• Counterparty risk: The ETF may be exposed to the creditworthiness of the counterparties involved in the volatility-linked instruments

👤 Best For

The ZVOL Volatility Premium Plus ETF may be suitable for investors seeking exposure to the volatility of the U.S. equity market as part of a diversified portfolio. However, due to the complex and speculative nature of the strategy, this ETF is generally considered appropriate for experienced, risk-tolerant investors with a long-term investment horizon and a high-risk tolerance.