Capital protected ETF

This product is designed for people who want to eliminate/reduce sequence risk. Another point to make is that SP500 has some yield but etf is based only on price change. That’s why I am watching the one based on Nasdaq 100 - CPNJ

 

What is sequence risk?

 

Sorry not sure I understand, what is 10S? and how are you left with 86 cents after buying 10s ?

 

WMD
weapon of mass deception

 

suggestions on how to do yourself?

 

It seems ETF uses 0 strike Call for long position Mimic, can it be done at retail?

 

I don’t think it can be done at inception for zero cost. That’s why I think they are actively managing/hedging at least partially. If someone can show this structure at zero cost using retail platform, would be nice.

 

see my post above.

 

no, a fund needs a prime broker or two acting as countrrparty, the trades are otc or dark pool because the volume will overwhelm the exchange. for a retail, assuming you are trading up to few millions, few hundred option contracts are nothing.

 

us 10 year note.