FYI: A new line of ETFs is coming to market that offers insurance-like strategies for retail investors. As part of that, TransAmerica-backed DeltaShares is listing a “new managed risk” ETF for emerging markets. The DeltaShares S&P Emerging Markets Managed Risk ETF (DMRE) will track a highly sophisticated set of indexes from S&P.
DMRE has three indexes: an equity index, a fixed income index, and a cash index. DMRE then “manages risk” by jumping between the three indexes, depending how volatile they are. It then uses a synthetic put option to tone down the risk of the equity and fixed income indexes even more.
While the indices are complex, the investment objective is simple: bag the upside of the equity market, while only getting the downside of bonds and cash when volatility shoots up.
The fund will charge 0.60%.
Regards,
Ted
http://www.etfstream.com/news/5465_deltashares-lists-managed-risk-etf-but-will-it-work
