Downshift ETF Strategy: Repeatable Investment Process

1)  Establish ETF Holdings
We begin by building a diversified, U.S. based equity portfolio made up of 13 ETFs.  All 11 S&P 500 sectors are owned, and the portfolio maintains a +/- 5% weighting to current S&P 500 sector weightings
Current ETF weightings:




 
2)  Covered Calls Written Against ETFs
- Opportunistically sold against the underlying ETFs to generate increased portfolio cash flow, current yield and total portfolio return
- Most covered call managers seek to increase yield first and foremost, without much thought to the total return component.  Adding total return and alpha is our first goal, with yield being second 
- The Strategy utilizes proprietary signals in determining when to sell calls, repurchase calls, and roll calls 
3)  Long-Dated S&P 500 Puts Purchased and Actively Managed 
 
- Provide meaningful protection against market declines 
- Mitigate theta decay 
- Rules based rolling of put options using proprietary indicators 
October 2018: 
S&P 500:  -6.74%
Wennco Downshift ETF:  -1.65%
 
HOW DID YOUR HEDGED EQUITY MANAGER DO IN OCTOBER?  IF THEY CAPTURED THE MAJORITY OF THE S&P 500's DOWNSIDE, THEY LIKELY ALSO DID IN FEBRUARY 2018 & AUGUST 2015, AND WILL AGAIN IN THE FUTURE.  IT'S TIME TO MAKE A CHANGE . CONTACT US.

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Wennco LLC is an SEC registered investment advisor located in Atlanta, Georgia. Wennco LLC provides asset management services utilizing the Wennco Downshift Strategies and Customized Option Overlay Solutions.