Day Hagan Smart Buffer ETF

Frequently Asked Questions About DHSB

What does DHSB invest in?

DHSB seeks long-term capital appreciation and preservation of capital. It actively invests in US equity securities and ETFs while utilizing options and/or options spread on these investments to generate income and hedge against potential losses. The portfolio provides broad, total market exposure to the US equity space. The funds options strategy consists of two components: selling covered call options on up to 100% of the US equity portfolio to generate premiums, while simultaneously reinvesting a portion of such premium to buy near-at-the-money put options or put spreads on the same equity portfolio to hedge or mitigate the downside risk associated with owning equity securities. Due to the funds hedging nature, investors are subject to an upside return cap. The fund adviser may not employ or partially employ the options strategy based on prevailing market conditions. The issuers website provides information on the funds buffer and return cap on a daily basis.

What is the expense ratio of DHSB?

Day Hagan Smart Buffer ETF (DHSB) charges an expense ratio of 0.68%. This is the annual fee deducted from fund assets to cover management and operations.

What is DHSB's distribution yield?

DHSB's trailing-twelve-month yield is 1.19%, calculated from the sum of distributions over the past year divided by the current price.

How does DHSB's covered-call strategy work?

DHSB sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is DHSB?

Day Hagan Smart Buffer ETF (DHSB) manages $39.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is DHSB actively managed or an index fund?

DHSB's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.