ZEGA Buy and Hedge ETF
Key Statistics
Historical Performance
Total return including reinvested distributions, from adjusted closing prices.
Price History
Price history is being compiled for this fund.
Top Holdings
Top 12 holdings as of Jan 31, 2026 · source: SEC N-PORT. Full holdings & prospectus →
About ZHDG
The Fund is an actively-managed exchange-tradedfund (“ETF”) that seeks to provide exposure to the U.S. large capitalization equity market, while mitigating overallmarket downside risk in the event of a major market decline. To achieve its investment objective, the Fund invests in a combinationof options, as well as fixed income securities, or other income producing securities, including preferred shares, through ETFsor other investment companies or through direct investments. In pursuing the Fund’s investmentobjective, the Adviser seeks to achieve exposure to the performance of the U.S. large capitalization equity market, generally recognizedas the S&P 500® Index (the “S&P 500”), through call index options, call options on the SPDR S&P 500ETF Trust (“SPY”) or other ETFs that track the S&P 500, and FLexible EXchange® Options (“FLEX Options”)(collectively, “S&P 500 options”). The Fund’s S&P 500 option positions will represent 100% notional exposureto the S&P 500. An option gives the purchaser of the optionthe right to purchase (for a call option) or sell (for a put option) the underlying asset (or deliver cash equal to the value ofan underlying index) at a specified price (“strike price”). In the event the underlying asset declines in value, thevalue of a call option will generally decrease (and may end up worthless) and the value of a put option will generally increase.In the event the underlying asset appreciates in value, the value of a call option will generally increase and the value of a putoption will generally decrease (and may end up worthless). FLEX Options are customizable exchange-traded option contracts guaranteedfor settlement by the Options Clearing Corporation (“OCC”). The Adviser may “ladder”the Fund’s S&P 500 option positions. “Laddering” is an investment technique that utilizes multiple optionpositions over multiple expiration dates, to avoid the risk of reinvesting a large portion of assets in an unfavorable financialenvironment, as well as creating more opportunities to roll hedges and secure gains during extended periods of market appreciation.The Adviser will ladder the Fund’s S&P 500 option positions by investing in options with multiple expiration dates overa 12-month period using at least two intervals or “rungs.” By regularly rebuilding each ladder rung as options expirethe Adviser will seek to achieve additional equity exposure as markets experience reduced prices (essentially buying on dips),or realize gains as market prices increase and as hedged positions are reestablished at higher levels. The Fund may invest significantly in fixedincome and other income producing securities through ETFs or other investment companies, or through direct investments. The Fund’sfixed income investments may include below investment grade debt securities (often referred to as “high yield” or “junk”bonds). The Fund’s fixed income investments aim to generate income as a means of offsetting expenses associated with thecost of purchasing options. The Fund may purchase put options as a means of hedging to provide downside protection on the underlyingholdings in the income portion of the Fund’s portfolio. The Fund also seeks to produce income byselling out-of-the-money call options. A call option is considered “out-of-the-money” when the strike price of theoption at expiration exceeds the current price of the underlying asset. The Fund will only sell call options that are either coveredby the underlying asset held in the Fund’s portfolio (also known as covered call selling) or by corresponding purchased calloptions held in the Fund’s portfolio (also known as a long call spread). The Fund’s option positions aredetermined by the Adviser based on underlying quantitative metrics, including open interest, depth of expirations, number of strikeprices, implied volatility, bid/ask spread width and cost. Open interest and bid/ask spread width are indicators of the liquidityof an option position and likelihood of efficient price execution. Implied volatility is an indicator of how expensive an optionis relative to other options and relative to historical ranges. In general, as volatility rises option premiums will also risemaking an option more expensive. A greater number of strike prices and expirations generally gives the Adviser more flexibilitywhen choosing levels and length of protection. The Adviser analyzes such metrics to determine the Fund portfolio’s abilityto mitigate market risk while generating returns. The Adviser makes buy and sell decisionsfor the Fund based on a set of defined rules established by the Adviser, which involve the use of proprietary quantitative modelsas well as information and data supplied by third parties (“Models and Data”), and which may be revised from time totime. With regard to buy and sell decisions, the Adviser considers option data and probabilities, along with the ability to managethe risk of a position. For fixed income investments, the Adviser assesses a position’s ability to have a viable hedge thatlimits risk while producing desired revenue. For S&P 500 options, the Adviser typically adds new purchased call options tothe Fund’s portfolio when the market value of the S&P 500 materially declines. When new call options are purchased duringmarket declines, the Adviser still intends to limit the Fund’s S&P 500 option positions to only approximately 8-10% ofthe Fund’s portfolio over a 12-month period. When the market value of the S&P 500 appreciates, the S&P 500 optionsgenerally increase in value. If the value of the Fund’s S&P 500 options materially exceed the 8-10% target, the Adviserwill simultaneously sell the S&P 500 options with higher market values in the Fund’s portfolio and purchase new S&P500 options that have a lower premium to bring the Fund’s S&P 500 options holdings in-line with the 8-10% target. By using a combination of options andfixed income positions, the Adviser seeks to limit the loss exposure of Fund portfolio holdings. The Fund’s notional exposureto the S&P 500 with options will represent 100% of the Fund’s portfolio. This limitation may be done by using put optionsfor protection or restricting the amount spent on long calls. The Fund aims to restrict exposure to major declines in the marketvalue of the S&P 500 as the most a purchased call option can lose is the amount paid for the call (also known as the premium).As a result, the Adviser seeks to limit the level of exposure to loss with respect to that portion of the Fund’s portfolioholding S&P 500 options to 8-10% over any 12-month period. The portion of the Fund’s portfolio holding S&P 500 optionsmay experience a loss of more than 8-10% in a single month or quarter; however, over the prior 12-month period the Adviser’sstrategy aims to limit losses within the 8-10% target range. During periods where the market value of the S&P 500 experiencesmultiple years of double-digit losses, the portion of the Fund’s portfolio holding S&P 500 options may experience lossesof 8-10% in consecutive 12-month periods. The portion of the Fund’s portfolioholding fixed income investments also has risk of loss exposure. The Adviser may hedge this risk of loss exposure by purchasingput options that are directly correlated to the underlying fixed income investments held in the Fund’s portfolio. The underlyingfixed income investments held in the Fund’s portfolio may experience losses, but the Adviser seeks to limit those lossesto 10% through the Fund’s investments in purchased put options. The Fund may simultaneously experiencelosses in both its S&P 500 option positions and fixed income investments. This may result in the Fund’s total portfolioexperiencing losses in excess of the 8-10% target range over a 12-month period. There are costs associated with theAdviser’s options hedging strategy and the Fund typically experiences such costs in the form of option time decay. Optiontime decay is a measure of the rate of decline in the value of an option contract due to the passage of time. The cost of the Fund’sS&P 500 options can limit the Fund’s ability to achieve returns equal to the gains experienced by the S&P 500.
ZHDG News
- How Zega Buy And Hedge Etf (ZHDG) Affects Rotational Strategy Timing
- (ZHDG) Risk Channels and Responsive Allocation
- ZEGA Buy and Hedge ETF (NYSEARCA:ZHDG) Short Interest Update
- (ZHDG) Movement as an Input in Quant Signal Sets
- Liquidity Mapping Around (ZHDG) Price Events
- Liquidity Mapping Around (ZHDG) Price Events
- Why (ZHDG) Price Action Is Critical for Tactical Trading
- ZEGA Buy and Hedge ETF (NYSEARCA:ZHDG) Sees Significant Decline in Short Interest
- Understanding Momentum Shifts in (ZHDG)
Data for ZHDG is aggregated from third-party providers (Tiingo, Nasdaq, Finnhub) and SEC filings, may be delayed at least 20 minutes, and may be incomplete or contain errors. Nothing here is investment advice. Verify with the official prospectus before investing.