Investment Chart

Investment Strategy Overview

The fund invests a majority of its assets in bond instruments. The remaining 10% is invested in S&P 500 call and put options. The options are never net short the market. The goal of the options is to utilize their inherent leverage to drive market like returns while the ultra-short duration fixed income dampens volatility. The call and put options are automatically rebalanced based on the market levels. As the market increases in price, the long positions are decreased, and vice versus. We believe this consistent rebalance drives favorable returns for the portfolio. 

The ultra-short fixed income component of the ETF will at times hold:

  1. Highly rated short-term corporate debt

  2. Certificate of Deposits

  3. Highly rate short-term municipal debt

  4. Treasuries


Fixed Income


The fund holds S&P 500 call options for its long market exposure.

Long Position


VectorShares creates a synthetic Spot VIX portfolio comprised of options to take advantage of volatility. The synthetic VIX is designed to offset loses on the long positions during periods of market volatility. 

Hedge Position
Daily Rebalancing