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Just curious. Don’t own. Off near 11% YTD (Morningstar data). From what I can tell it’s never had a losing year since inception (2017). I read dividend payers were having an off year, which partially explains it. But, Price’s PRFDX (invests in dividend paying stocks) is only down 2 or 3%. CCOR hedges against stock market risk. Right? But S&P inverse (SPDN) appears to have lost only half as much.
If I had to guess (which really is all that I am doing) I'd say that it is a combination of not owning enough of the top 5-8 market moving momentum equities + the downdraft being experienced by dividend paying stocks + their derivative strategy(ies) are not positioned correctly for the current market sentiment whatever that is.
That's probably not really helpful but when I looked at the fact sheet for the fund I can't tell what index they are tracking unless it's one they came up with in-house and their derivative strategy is listed merely as proprietary.
I believe CCOR has been mentioned by Lynn Bolin in his articles about conservative funds for declining markets. I followed it but never bought it despite its solid record until 2023. It holds large dividend payers while writing options on equity indices to temper volatility. VIG, by way of comparison, is up about 1.7% YTD. May be that dividend heavy funds are not keeping up with overall market.
I believe CCOR has been mentioned by Lynn Bolin in his articles about conservative funds for declining markets. I followed it but never bought it despite its solid record until 2023. It holds large dividend payers while writing options on equity indices to temper volatility. VIG, by way of comparison, is up about 1.7% YTD. May be that dividend heavy funds are not keeping up with overall market.
It had a good reputation on the board based on discussions going back over a year. I did have a small holding for a while in mid-2022. While I don’t understand this stuff completely, I know it sells puts as a defensive tactic which are supposed to rise as equity markets fall. Held up well in 2020 when markets swooned. Seems to have gone “kaput” this time around.
One simple theory might be that the type of conservative investors who buy a fund like this (or the defensive holdings it uses) have sold in large quantities and simply moved into cash and CDs with short term rates as high as they are. My guess is it will bounce back. Wish I had some extra dough to throw at it.
Morningstar's gutted portfolio list (it now shows only the top 10 holdings) shows that nine of the top 10 holdings made money over the past 12 months with eight posting double-digit gains.
Given a sideways comment in the manager's latest update and the strong equity performance (at last in the largest holdings), it appears that they dramatically screwed up their options position, anticipating a sharp collapse and seeing, instead strong gains.
More expert people were pessimistic the last months than was warranted by any good evidence I was aware of or heard about, and even today on Bloomberg radio I heard a guest woman analyst or advisor almost guffaw after the reporter-analyst talked (yet again, yet again) about the 'upcoming recession'.
Morningstar's gutted portfolio list (it now shows only the top 10 holdings) shows that nine of the top 10 holdings made money over the past 12 months with eight posting double-digit gains.
Given a sideways comment in the manager's latest update and the strong equity performance (at last in the largest holdings), it appears that they dramatically screwed up their options position, anticipating a sharp collapse and seeing, instead strong gains.
I still see longer Portfolio Holdings (up to 100 in up to 10 pages) at M* for many OEFs, ETFs, CEFs.
But for CCOR, M* says (my bold), "This investment's holding data is suppressed to show the top 10." It may be one of those nontransparent active equity ETFs with complicated holding disclosure rules.
These are some of the options that hurt CCOR and the weights as of April 2023 SPX Mav3 4070.0P 0.25% Cash Options SPX Mav3 4065.OP 0.06% Cash Options SPX Mav3 4125.OP 0.05% Cash Options SPX Mav3 4100.0P 0.01% Cash Options SPX Apr3 4050.0P 0.00% Cash Options
Closest thing I own is DIVO. That's up about 1.0 YTD.
I bet you knew, which I did not, that DIVO holds 22 stocks!?
Plus Dow derivs and several other options.
My fear is that it is easier to fail than broader ETFs. (I already went through closing w effing RWGV, closed on account of not enough interest ....)
It holds 32 stocks according to M*, if they are over their most recent technical snafu.
It is also an MFO premium Great Owl, and a five star M* fund. Various numbers named after econ dudes go into conclusions like that, People can look them up to see if they satisfy their wonts.
AUM are at 2.9 billion. I have also looked at the stocks it holds. I'm not worried.
YTD returns are ahead of SCHD and VEIRX. Twelve month returns are perking right along.
And I love the fact that it pays monthly dividends.
That being said, everyone should do their due diligence, and stay in their comfort zone.
The stock count is right in line with their declared strategy to own 20-25 stocks. So it's nice to know they aren't suffering from strategy creep.
Depending on who you can believe in this crazy internet world, they're around 90% equities and their secret sauce is around10% AGPXX and around -.03 options on stocks in their portfolio. That's not the kind of thing that keeps me up at night. YMMV.
@davidrmoran: I had never heard of RWGV, so I searched and found a chart on effrc.com that traces the fund’s AUM as they rose and then fell precipitously until, quite literally, there is an ominous flat-line as if the fund pulse resembled the vitals of an expired patient in the ER or ICU. Spooky. Sorry you had that experience.
Thank you. MFreeland and others (Ted) wrote about Direxion over the years before the outfit went fully psycho. Also after. G over V looked interesting to me (did not go to zero), and I lost a little less than a quarter of a non-large investment. Live and (sometimes) learn. Divo's two dozen stocks just makes me somewhat gunshy.
It's too bad CCOR is stinking up the place this year as I've been interested in this fund for a while. Admittedly, some of my interest faded when short-term Treasuries started yielding over 4% and now 5%. High quality bonds are far more attractive today than they were at the start of 2022, when nothing looked good. That is what piqued my interest in CCOR. Now, meh, and mismanagement of options as others have pointed out.
”It's too bad CCOR is stinking up the place this year as I've been interested in this fund for a while. Admittedly, some of my interest faded when short-term Treasuries started yielding over 4% and now 5%. High quality bonds are far more attractive today than they were at the start of 2022 … “
Well, an early guess of mine (same thread) was that folks have shifted into cash, CDs and the like. If so, the swoon could partially reflect assets moving out of the types of things CCOR owns, or actually fleeing the fund. Without looking, I’d have to guess the latter is true, as today’s fund investors aren’t likely to sit on a stinker like this too long. What I wonder is - if being andan ETF, CCOR might be more susceptible to funds fleeing (and associated damage) than say a mutual fund with tighter trading restrictions? If so, there might be a valuable lesson here for all of us who have gravitated to ETFs.
None of this is intended to overlook the keen insights @DavidSnowball and others have submitted. All of the replies in the thread make good sense to me. And much appreciated.
MICROSOFT CORP VISA INC JOHNSON & JOHNSON PROCTER AND GAMBLE CO UNITEDHEALTH GROUP INC MCDONALDS CORP CHEVRON CORP NEW MERCK & CO INC JPMORGAN CHASE & CO. GOLDMAN SACHS GROUP INC APPLE INC UNITED PARCEL SERVICE INC DEERE & CO HOME DEPOT INC WALMART INC LOCKHEED MARTIN CORP GENERAL MLS INC DUKE ENERGY CORP NEW MARATHON PETE CORP SCHLUMBERGER LTD COCA COLA CO STARBUCKS CORP DOW INC VERIZON COMMUNICATIONS INC
and also this: UPS US 07/21/23 C190 GS US 07/21/23 C370 DUK US 07/21/23 C97.5 DE US 07/21/23 C440 MPC US 07/21/23 C125 SLB US 07/21/23 C52.5 DOW US 06/30/23 C53 UNITEDHE CLL OPT 07/23 510 GIS US 07/21/23 C85 JOHNSON CLL OPT 07/23 170
Comments
Closest thing I own is DIVO. That's up about 1.0 YTD. IHDG is positive. All of my other dividend funds, like SCHD, are in the red. PEY is off 12.92
That's probably not really helpful but when I looked at the fact sheet for the fund I can't tell what index they are tracking unless it's one they came up with in-house and their derivative strategy is listed merely as proprietary.
One simple theory might be that the type of conservative investors who buy a fund like this (or the defensive holdings it uses) have sold in large quantities and simply moved into cash and CDs with short term rates as high as they are. My guess is it will bounce back. Wish I had some extra dough to throw at it.
Given a sideways comment in the manager's latest update and the strong equity performance (at last in the largest holdings), it appears that they dramatically screwed up their options position, anticipating a sharp collapse and seeing, instead strong gains.
But for CCOR, M* says (my bold), "This investment's holding data is suppressed to show the top 10." It may be one of those nontransparent active equity ETFs with complicated holding disclosure rules.
SPX Mav3 4070.0P 0.25% Cash Options
SPX Mav3 4065.OP 0.06% Cash Options
SPX Mav3 4125.OP 0.05% Cash Options
SPX Mav3 4100.0P 0.01% Cash Options
SPX Apr3 4050.0P 0.00% Cash Options
SPX FEB3 4030.0P 0.28%
SPX FEB3 4015.0P 0.24%
SPX FEB3 3950.0P 0.11%
SPX FEB3 3960.0P 0.10%
SPX FEB3 3925.0P 0.04%
SPX MAR3 3995.0P 0.48%
SPX MAR3 3970.0P 0.41%
SPX FEB3 3990.0P 0.20%
SPX MAR3 3920.0P 0.14%
SPX FEB3 3970.0P 0.00%
SPX Apr3 4035.0P 0.09%
SPX Apr3 3995.0P 0.03%
SPX Apr3 4000.0P 0.00%
SPX Apr3 3870.0P 0.00%
SPX Mar3 3905. OP 0.00%
SPY Mar3 4010 OP 0 00%
Thanks for your time, Derf
Plus Dow derivs and several other options.
My fear is that it is easier to fail than broader ETFs. (I already went through closing w effing RWGV, closed on account of not enough interest ....)
It is also an MFO premium Great Owl, and a five star M* fund. Various numbers named after econ dudes go into conclusions like that, People can look them up to see if they satisfy their wonts.
AUM are at 2.9 billion. I have also looked at the stocks it holds. I'm not worried.
YTD returns are ahead of SCHD and VEIRX. Twelve month returns are perking right along.
And I love the fact that it pays monthly dividends.
That being said, everyone should do their due diligence, and stay in their comfort zone.
Why do you suppose I would post what I posted without checking?
You can read M* ... or you can, you know, just go do the count yourself:
https://amplifyetfs.com/divo-holdings/
24 as of today; I see I misread Dow Inc.
plus, as I said, their other 'secret sauce' stuff
The stock count is right in line with their declared strategy to own 20-25 stocks. So it's nice to know they aren't suffering from strategy creep.
Depending on who you can believe in this crazy internet world, they're around 90% equities and their secret sauce is around10% AGPXX and around -.03 options on stocks in their portfolio. That's not the kind of thing that keeps me up at night. YMMV.
andan ETF, CCOR might be more susceptible to funds fleeing (and associated damage) than say a mutual fund with tighter trading restrictions? If so, there might be a valuable lesson here for all of us who have gravitated to ETFs.None of this is intended to overlook the keen insights @DavidSnowball and others have submitted. All of the replies in the thread make good sense to me. And much appreciated.
MICROSOFT CORP
VISA INC
JOHNSON & JOHNSON
PROCTER AND GAMBLE CO
UNITEDHEALTH GROUP INC
MCDONALDS CORP
CHEVRON CORP NEW
MERCK & CO INC
JPMORGAN CHASE & CO.
GOLDMAN SACHS GROUP INC
APPLE INC
UNITED PARCEL SERVICE INC
DEERE & CO
HOME DEPOT INC
WALMART INC
LOCKHEED MARTIN CORP
GENERAL MLS INC
DUKE ENERGY CORP NEW
MARATHON PETE CORP
SCHLUMBERGER LTD
COCA COLA CO
STARBUCKS CORP
DOW INC
VERIZON COMMUNICATIONS INC
and also this:
UPS US 07/21/23 C190
GS US 07/21/23 C370
DUK US 07/21/23 C97.5
DE US 07/21/23 C440
MPC US 07/21/23 C125
SLB US 07/21/23 C52.5
DOW US 06/30/23 C53
UNITEDHE CLL OPT 07/23 510
GIS US 07/21/23 C85
JOHNSON CLL OPT 07/23 170