53 min

De-Risking Your Portfolio Without Giving Up On Strong Returns Let's Talk ETFs

    • Investing

J.D. Gardner started ETF firm Aptus to attack what he terms the "behavior gap" in investing, whereby investors routinely underperform their underlying investments by "performance chasing". Aptus' flagship fund, DRSK, attacks the behavior gap frontally by limiting drawdowns through the use of maturity date bond ETFs and broad index puts. Yet, DRSK has managed to handily beat the S&P 500 in 2020 by taking advantage of the "sporadic asymmetry" offered by buying a basket of stock calls. Gardner joins Let's Talk ETFs to explain the philosophy behind DRSK and why he believes Aptus has cracked the code to tamping down risk without giving up on strong returns.
Show Notes

2:00 - Describe the economic situation in Alabama as a result of the pandemic

3:30 - Work/life balance

5:00 - What made you decide to start your own ETF firm?

7:00 - The behavioral issues facing the majority of investors

11:00 - What is sporadic asymmetry? 

12:45 - How does DRSK merge theory with reality? 

15:00 - Why is the fund constructed mostly as a "bond ladder"?

19:00 - DRSK and duration risk

21:00 - DRSK and credit risk

27:00 - What percent of the overall return of the fund does the 6% in options represent?

30:00 - Is the call buying strategy designed to replicate the broad market in terms of sector allocations?

32:00 - How did you decide on Southwest (LUV) vs. other airlines?

36:30 - Broad index puts for hedging

39:00 - How did this hedge cushion the blow in the first quarter of 2020?

42:30 - How is the fund treated for tax purposes?

45:00 - Is this ETF meant to be a core holding?


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J.D. Gardner started ETF firm Aptus to attack what he terms the "behavior gap" in investing, whereby investors routinely underperform their underlying investments by "performance chasing". Aptus' flagship fund, DRSK, attacks the behavior gap frontally by limiting drawdowns through the use of maturity date bond ETFs and broad index puts. Yet, DRSK has managed to handily beat the S&P 500 in 2020 by taking advantage of the "sporadic asymmetry" offered by buying a basket of stock calls. Gardner joins Let's Talk ETFs to explain the philosophy behind DRSK and why he believes Aptus has cracked the code to tamping down risk without giving up on strong returns.
Show Notes

2:00 - Describe the economic situation in Alabama as a result of the pandemic

3:30 - Work/life balance

5:00 - What made you decide to start your own ETF firm?

7:00 - The behavioral issues facing the majority of investors

11:00 - What is sporadic asymmetry? 

12:45 - How does DRSK merge theory with reality? 

15:00 - Why is the fund constructed mostly as a "bond ladder"?

19:00 - DRSK and duration risk

21:00 - DRSK and credit risk

27:00 - What percent of the overall return of the fund does the 6% in options represent?

30:00 - Is the call buying strategy designed to replicate the broad market in terms of sector allocations?

32:00 - How did you decide on Southwest (LUV) vs. other airlines?

36:30 - Broad index puts for hedging

39:00 - How did this hedge cushion the blow in the first quarter of 2020?

42:30 - How is the fund treated for tax purposes?

45:00 - Is this ETF meant to be a core holding?


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53 min

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