Aptus specializes in risk-managed strategies designed to help clients stay invested through the ups and downs of market cycles. A crucial concept of their business is that “A basket of options is worth more than an option on a basket.” Of course, managing a basket of options vs. an index option requires managing more moving parts but Aptus is all about maximizing risk-adjusted return and the ETF wrapper allows them to execute their strategy at scale.

FEATURED ETF

DRSK

Aptus Defined Risk ETF

Fact Sheet | Investment Case | Video Introduction

DRSK is unique in how it approaches an investor’s bond allocation. Because Aptus sees fixed income investing as a major issue for investors in a low intereste rate environment, they use a “bond plus” approach, combining laddered bonds with asymmetric options exposure.

In addition to the traditional investment grade bond allocation through roughly 90% of the portfolio, 5%-9% of the portfolio is allocated to an Aptus area of specialty – what they like to call the sporadic asymmetry of options.

Aptus refers to this as sporadic because they believe a number of individual bets that are independent of each other will help increase both portfolio diversification and upside opportunities vs. buying one index call option.  In theory, asymmetric because when owing call options potential upside is unlimited while your downside is known. (Generally the amount of premium paid plus losses also extend to the fees and charges involved with options trading.)

Aptus believes that a basket of options provides sporadic asymmetry that an option on a basket doesn’t – increasing potential return and lowering potential risk.

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Investing involves risk. Principal loss is possible. The Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those in the financial sectors.

The Aptus Defined Risk ETF invests in options and may be subject to the risk of losing all or part of the cash paid (premium) for purchasing options. Options are financial derivatives that give buyers the right, but not the obligation, to buy (call) or sell (put) an underlying asset at an agreed-upon price and date. Options can be volatile and amplify risks. The Fund could experience a loss if its options do not perform as anticipated.

The Fund primarily invests in investment-grade fixed income securities indirectly through investments in underlying bond ETFs which may result in higher fees and duplicative expenses. Fixed income securities are subject to interest rate risk where the value of fixed income securities will change inversely with changes in interest rates. As interest rates rise, the market value of fixed income securities tends to decrease. Also, when interest rates fall, certain obligations may pre-paid more quickly than originally anticipated, and the proceeds may have to be invested in securities with lower yields. Investment-grade refers to a higher level of confidence by ratings agencies that the issuer will beable to make its principal and interest payments. Changes in ratings of the underlying debt securities could lead to unexpected credit risk and affect the value of an invest in that issuer.

Investments in foreign securities (non-U.S. Issuers) involve certain risks such as loss due to differences in accounting, auditing, and financial reporting standards and adverse changes in regulations, political instability, regulatory and economic differences.

The strategy relies on the Adviser to allocate assets among a hybrid equity and fixed income strategy based on how stock and bond movements correlate. There is no guarantee the strategy will limit downside risk or obtain the desired results.

The Fund may invest in other investment companies and ETFs which may result in higher and duplicative expenses. Investing in ETFs are subject to the risks that the market price of the shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Funds ability to sell its shares.

The Aptus Defined Risk ETF (the “Fund”) seeks current income and capital appreciation. DRSK is an actively-managed exchange-traded fund that seeks to achieve its objective through a hybrid fixed income and equity strategy. The Fund typically invests approximately 90% to 95% of its assets to obtain exposure to investment-grade corporate bonds and invests the remainder of its assets to obtain exposure to large capitalization U.S. stocks.

Diversification does not assure a profit nor protect against loss in a declining market. One cannot invest directly in an index.

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. Market returns are based upon the midpoint of the bid/ask spread a 4:00pm Eastern Time (when NAV is normally determined for most ETF’s), and do not represent the returns you would receive if you traded shares at other times.

Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Nothing contained on this website constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.

Aptus Capital Advisors is the advisor to the Aptus Drawdown-Managed Equity ETF, Aptus Defined Risk ETF, and Aptus Collared Income Opportunity ETF, all of which are distributed by Quasar Distributors, LLC.

The fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. Important information about the fund and are available at aptusetfs.com or by calling 1-800-617-0004. Read it carefully before investing. Please click here to view the Aptus Drawdown-Managed Equity ETF,  Aptus Defined Risk ETF and Aptus Collared Income Opportunity ETF prospectuses.