Swan Hedged Equity US Large Cap ETF

Frequently Asked Questions About HEGD

What does HEGD invest in?

HEGD seeks to invest in (one or more) ETFs that provide exposure to the US large-cap market, and hedges using put and call options as a defined risk strategy. The fund uses exchange-traded options on the S&P 500 Index. It invests in long-term put options for hedging purposes, and a combination of put and call options to increase income. Essentially, the portfolio contains an equity portion which is hedged with put options, combined with an actively managed option strategy that seeks additional returns and decrease volatility. As such, HEGD will also regularly engage in various spread option strategies. The fund intends to hold its ETF portfolio indefinitely, while the options are bought and sold when unfavorable risk is present. Rebalancing occurs annually.

What is the expense ratio of HEGD?

Swan Hedged Equity US Large Cap ETF (HEGD) charges an expense ratio of 0.88%. This is the annual fee deducted from fund assets to cover management and operations.

How big is HEGD?

Swan Hedged Equity US Large Cap ETF (HEGD) manages $735.9M 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 HEGD actively managed or an index fund?

HEGD is actively managed: the manager selects holdings rather than tracking an index. Active funds typically charge higher expense ratios than index funds (HEGD's is 0.88%) in exchange for the discretion to over- or under-weight positions.

When was HEGD launched?

Swan Hedged Equity US Large Cap ETF (HEGD) launched in December 2020 and is managed by Swan.

How has HEGD performed?

HEGD's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.