TrueShares Seasonality Laddered Buffered ETF (ONEZ) seeks to provide downside protection with capped upside potential using a defined outcome strategy over specific time periods. This buffer ETF employs options strategies to limit losses while participating in market gains up to a predetermined cap, targeting seasonal market patterns.
How It Works
ONEZ uses a laddered approach with multiple overlapping outcome periods, each employing options collars to create buffers against the first 10-15% of losses while capping gains at specific levels. The fund actively manages options positions, rolling and adjusting contracts as outcome periods expire and new ones begin. This creates a continuous cycle of defined outcome exposures rather than single-period protection, with rebalancing occurring as options approach expiration.
Key Features
- Laddered structure provides continuous defined outcomes rather than single-period protection, reducing timing risk for investors
- Seasonal focus attempts to capitalize on historical market patterns and volatility cycles throughout the year
- Recently launched with 0.00% expense ratio, though this promotional rate will likely increase after initial period
Risks
- This ETF can lose value up to the buffer amount (typically 10-15%) before protection kicks in, and losses beyond the buffer are unprotected
- Upside participation is capped, meaning investors miss gains above predetermined levels during strong market rallies, potentially underperforming significantly
- Options strategies create complexity risk where the fund may not perform as expected due to volatility changes, early assignment, or execution issues
Who Should Own This
Best suited for conservative investors with 1-3 year time horizons seeking downside protection while maintaining some upside participation. Requires low-to-medium risk tolerance and works as a satellite holding (5-15% allocation). Ideal for investors approaching retirement or those wanting equity-like exposure with defined risk parameters during uncertain market periods.