QBQF provides exposure to growth stocks with a built-in insurance policy — you're protected against the first 15% of losses over a defined period, but your upside is capped. Think of it as growth investing with training wheels.
How It Works
The fund uses a options overlay on a growth stock portfolio to create defined outcomes. At the start of each outcome period, it establishes a floor 15% below the starting level and a cap on gains (typically 10-20% depending on volatility). The options reset annually, creating a new buffer and cap. Between resets, the protection level moves with the market, so mid-period buyers get different risk/return profiles.
Key Features
- 15% downside buffer refreshes annually, protecting against moderate corrections
- Growth stock exposure with volatility dampening — smoother ride than pure growth funds
- No expense ratio suggests this is newly launched or promotional pricing
Risks
- Upside cap means missing out on big rallies — if growth stocks surge 30%, you might only get 15%
- Buffer only protects first 15% — in a 25% crash, you still lose 10%
- Outcome period timing crucial — buying mid-period means inheriting someone else's buffer position
Who Should Own This
Perfect for investors who want growth exposure but lose sleep during corrections. Works well for those nearing retirement who can't stomach another 2022-style growth stock massacre but don't want to abandon equities entirely. Also suits anyone who prefers predictable outcomes over maximizing returns — you're trading away home runs for fewer strikeouts.