RMRC attempts to deliver equity-like returns while systematically hedging against major drawdowns through dynamic risk management. The fund targets participation in market upside while aiming to limit losses during significant declines.
How It Works
The ETF employs a multi-layered approach combining core equity exposure with tactical hedging overlays that adjust based on market volatility, momentum, and correlation signals. Position sizing and hedge ratios dynamically scale with perceived risk levels, potentially moving to cash or defensive assets when models signal elevated downside probability. The strategy likely rebalances frequently as risk indicators change.
Key Features
- Active drawdown management that can reduce equity exposure to near-zero in crisis scenarios
- No expense ratio charged, making it cost-competitive with passive alternatives
- Launched in 2026 with no track record to evaluate actual risk management effectiveness
Risks
- Whipsaw risk from frequent hedging adjustments could lag in choppy markets by 5-10% annually
- Model failure during unprecedented events could result in full equity losses despite hedging intent
- Zero AUM suggests either pre-launch status or immediate market rejection of the strategy
Who Should Own This
Best suited for nervous equity investors who want stock exposure but lose sleep during 10%+ corrections. Works as a core holding for those willing to sacrifice some upside (potentially 2-3% annually) for downside protection. The zero expense ratio makes it worth considering for anyone comparing to expensive variable annuities or structured products with similar goals.