Swan Global Investments Partners With O’Shares Investments to Launch the Swan Enhanced Dividend Income ETF (SCLZ)
DURANGO, Colo., February 27, 2024 (Newswire.com) - Swan Global Investments and Index Provider O’Shares Investments join forces to launch the Swan Enhanced Dividend Income ETF (CBOE: SCLZ) to provide investors with a distinct and active approach seeking regular income and capital appreciation.
Swan Global Investments combines its decades of experience in managing options strategies with O'Shares' leadership in index strategy and development to create the Swan Enhanced Dividend Income ETF.
The Swan Enhanced Dividend Income ETF pursues total return, seeking both sustainable income and capital appreciation, via actively-managed covered call-writing on a quality dividend growth stock portfolio. This unique approach combines Swan's decades of options management expertise alongside O'Shares’ experience in creating rules-based, data-driven indexes.
“Our distinct ‘active-active’ strategy offers investors a compelling ‘dual alpha’ enhanced income solution,” said Randy Swan, Founder and Lead Portfolio Manager of Swan Global Investments.
Building on decades of success in index strategy development, O’Shares Investments developed the O’Shares Focused Quality Dividend Index (the Index). The Index will serve as the universe from which Swan will select underlying stocks for the ETF. The Index will be at least 80% invested in approximately 50 dividend-paying common stocks of large-cap and mid-cap U.S. companies exhibiting Quality and Growth characteristics as determined by O’Shares Investments. O’Shares Investments research identified important relationships between stock performance coupled with high return-on-assets (ROA), significant dividend growth and strong balance sheets.
“Our team uses substantial research to identify important financial measures of quality used in our rules-based indexes that include profitability, cash earnings, and strong balance sheets,” said Kevin O’Leary, Chairman of O’Shares Investments.
The strategy seeks to augment its total return by writing call options on its stock holdings. Covered call writing is a well-known way to monetize a stock’s growth potential. Bringing over 26 years of options expertise to the partnership, Swan Global Investments has developed a proprietary options trading methodology that seeks to add alpha. The active management approach selectively writes options on the individual stocks within the portfolio when conditions appear favorable, seeks to avoid writing options when prospects seem poor, adjusts positions as market conditions change, and actively seeks to take profits to drive total return.
“This approach provides investors with an alternative to passively-managed equity income strategies, which may be unable to adapt to market conditions, unduly cap upside potential, and/or erode an investor’s capital base overtime,” said Chris Hausman, CMT®, Portfolio Manager and Managing Director-Risk.
The strategy is also available in a separate account format.
For more information, advisors or investors should contact Swan Global Investments at sales@swanglobalinvestments.com or (877) 383-7259/ (877) ETF-SCLZ.
About Swan Global Investments
Swan Global Investments is a leader in hedged equity and options-based strategies, providing goals-based investment solutions, which include both passive and active strategies, available across a range of asset classes and investment structures, including ETFs, mutual funds, separately managed accounts, and custom portfolio overlays. For more information on the Swan Enhanced Dividend Income ETF, click here.
About O’Shares Investments
O’Shares Investments is an independent index provider of innovative, rules-based investment solutions for long-term wealth management. O’Shares Investments solutions include custom index construction for core strategies such as broad market, growth, value, and income, as well as sector and thematic investment solutions.
Important Disclosures:
Investors should carefully consider the investment objective, risks, charges and expenses of the Swan Enhanced Dividend Income Fund. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call 877-383-7259 or 877-ETF-SCLZ, or you can order copies of the prospectus via email: orderswanetfs@ultimusfundsolutions.com. Please read the prospectus carefully before you invest.
The fund’s investment objective is to seek income and capital appreciation.
An investment in the fund involves risk, including possible loss of principal.
Exchange Traded Funds and Mutual Funds involve risk, including possible loss of principal. There is no guarantee the Fund will meet its objective. The fund will use put and call options, which are referred to as “derivative” instruments since their values are based on, or derived from, an underlying reference asset, such as an index. Derivatives can be volatile, and a small investment in a derivative can have a large impact on the performance of the Fund as derivatives can result in losses in excess of the amount invested. Options used by the Fund to reduce volatility and generate returns may not perform as intended. There can be no assurance that the Fund’s option strategy will be effective. It may expose the Fund to losses, e.g., option premiums, to which it would not have otherwise been exposed. Further, the option strategy may not fully protect the Fund against declines in the value of its portfolio securities. The prices of options may change rapidly over time and do not necessarily move in tandem with the price of the underlying securities. Selling call options reduces the Fund’s ability to profit from increases in the value of the Fund’s equity portfolio, and purchasing put options may result in the Fund’s loss of premiums paid in the event that the put options expire unexercised. To the extent that the Fund reduces its put option holdings relative to the number of call options sold by the Fund, the Fund’s ability to mitigate losses in the event of a market decline will be reduced. The Fund is non‐diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.
Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
The Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC and Swan Capital Management, LLC are not affiliated. There is no guarantee the fund will meet its objective. 3192-NLD-02/26/2024
Source: Swan Global Investments
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