DeltaShares S&P 400 Managed Risk ETF (DMRM)

Overview

The company in question operates a specialized investment fund that primarily focuses on employing a managed risk strategy by investing at least 80% of its assets into securities that constitute the S&P 400 Managed Risk 2.0 Index. This approach is meticulously designed to mitigate investment risk while seeking to provide stable returns under normal market conditions. The S&P 400 Managed Risk 2.0 Index itself is structured to balance investments among three major components: the S&P MidCap 400 Index, showcasing mid-size company stocks; the S&P U.S. Treasury Bond Current 5-Year Index, reflecting interests in medium-term government bonds; and the S&P U.S. Treasury Bill 0-3 Month Index, focusing on short-term government securities. The fund's strategy, by leveraging this allocation mix, aims to harness the growth potential of mid-cap stocks while maintaining a safety buffer through investments in U.S. Treasury bonds and bills, thus offering a diversified yet non-traditional investment avenue. It is crucial to note here that the fund is classified as non-diversified, meaning it may allocate a larger portion of its resources into a smaller number of investments, potentially increasing the risk and return profile compared to diversified funds.

Products and Services

• S&P MidCap 400 Index Exposure

  The fund invests in securities from the S&P MidCap 400 Index, which includes mid-size companies believed to offer a balance between the growth potential of small-cap stocks and the stability of large-cap stocks. This investment is designed for investors looking to tap into the growth dynamics of medium-sized enterprises that are often in their expansion phase but carry a lower risk profile than smaller companies. The exposure to this index is part of the fund’s strategy to achieve growth while managing risk.

• S&P U.S. Treasury Bond Current 5-Year Index Investment

  Part of the fund’s assets are also allocated to securities from the S&P U.S. Treasury Bond Current 5-Year Index. This includes medium-term U.S. Treasury bonds that generally offer lower returns compared to stocks but are considered safer investments. This component of the fund’s portfolio serves as a stabilizing factor, providing a hedge against the volatility associated with equities and ensuring a level of protection in adverse market conditions.

• S&P U.S. Treasury Bill 0-3 Month Index Allocation

  Finally, the fund invests in the S&P U.S. Treasury Bill 0-3 Month Index, comprising short-term government securities. These are among the safest investments, offering liquidity and a very low risk of loss. Investing in this index allows the fund to maintain a cash-like component in its portfolio, further enhancing its risk management strategy and offering investors a buffer during fluctuating market conditions.