The TrueShares ConVex Protect ETF (PVEX) seeks to provide equity market exposure with downside protection through a convex options strategy. This protective equity ETF combines long stock positions with options overlays designed to limit losses during market declines while maintaining upside participation potential.
How It Works
PVEX employs an actively managed approach combining equity holdings with protective options strategies to create a convex risk profile. The fund uses put options and collar strategies to establish downside floors while maintaining exposure to market gains. Portfolio managers dynamically adjust options positions based on market volatility and risk metrics. The strategy aims to reduce maximum drawdowns compared to traditional equity exposure while preserving long-term growth potential through systematic risk management.
Key Features
- Convex protection strategy designed to limit downside losses while maintaining meaningful upside participation in equity markets
- Active options overlay management allows dynamic adjustment of protection levels based on changing market volatility conditions
- Recently launched fund with 0.00% expense ratio, though this promotional rate may increase after initial period
Risks
- This ETF can lose value if options strategies fail to provide expected protection during severe market stress, potentially underperforming both stocks and bonds
- Complex derivatives strategies may create tracking errors and unexpected losses if options positions are poorly timed or executed incorrectly
- New fund with no performance history faces uncertainty around strategy effectiveness across different market cycles and volatility regimes
Who Should Own This
Best suited for conservative equity investors with 3-5 year time horizons seeking downside protection with growth potential. Medium risk tolerance required given options complexity and new fund uncertainty. Works as satellite holding (10-20% allocation) for investors wanting equity exposure with built-in risk management features.