- What does HEDG invest in?
- The Equable Shares Hedged Equity ETF (HEDG) functions as a fund-of-funds, engineered to provide income and reduce exposure to market downturns through a disciplined covered call option-writing approach. Its portfolio consists of equity holdings linked to the S&P 500 index, which it acquires through investments in other ETFs or via direct stock purchases. The fund sells covered call options against these securities to earn premiums. These premiums offer a degree of protection during market declines, yet they also place a cap on potential upside appreciation. Option positions are generally adjusted or "rolled" every three months. For liquidity management and to accommodate redemptions, the fund is authorized to hold up to 20% of its assets in cash, cash equivalents, various ETFs, or money market instruments. In times of severe market stress, the entire fund can temporarily shift into these highly liquid, short-term assets. Notably, before October 13, 2025, HEDG operated as a mutual fund, known as the Equable Shares Hedged Equity Fund, transitioning to its current ETF structure on that date with an initial asset base of $275.2 million.
- What is the expense ratio of HEDG?
- Equable Shares Hedged Equity ETF (HEDG) charges an expense ratio of 0.96%. This is the annual fee deducted from fund assets to cover management and operations.
- What is HEDG's distribution yield?
- HEDG's trailing-twelve-month yield is 1.45%, calculated from the sum of distributions over the past year divided by the current price.
- How does HEDG's covered-call strategy work?
- HEDG 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 HEDG?
- Equable Shares Hedged Equity ETF (HEDG) manages $468.1M 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 HEDG actively managed or an index fund?
- HEDG's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
