Strategy

In the context of ETFs (Exchange Traded Funds), a strategy refers to the approach that investors or fund managers employ to achieve specific financial goals, such as growth, income, or market hedging.

 Various strategies include:

    • Active: actively managed funds that do not strictly follow an index.

    • Bullet maturity: funds and their bonds mature on a designated date.

    • Buy-write: utilizes an options overlay strategy where call options are written against similar equity exposure.

    • Copycat: mimics the positions of other prominent funds or managers.

    • Dividends: selection or weighting based on dividends paid by companies.

    • Duration hedged: adjusts interest rate risk of its bond portfolio.

    • Equal: equally weighs all holdings.

    • ESG: employs environmental, social, corporate governance, and other ethical principles for selection or weighting.

    • Exchange-specific: the fund's universe is strictly a single exchange.

    • Extended-term: selects a single futures contract commodity type with a longer tenor than the primary month.

    • Fixed asset allocation: adheres to a set criterion of asset allocation.

    • Fundamental: based on data from a company's financial statements.

    • Growth: targets the growth side of the style continuum.

    • Inflation hedged: aims to counteract the inflation risk of securities.

    • Laddered: selects commodity futures according to static tenor rules.

    • Long-short: holds both long and short positions, often across multiple asset classes.

    • Low volatility: exposes to stocks with lower historical price volatility.

    • Momentum: targets stocks based on historical price trends.

    • Multi-factor: combines fundamental and technical factors for stock exposure.

    • Optimized commodity: adjusts commodity exposure based on specific rules.

    • Price-weighted: weighs based on security prices without considering the total market value.

    • Target duration: seeks a stable aggregate estimated interest rate risk level.

    • Technical: chooses securities based on historical price patterns.

    • Time since launch: uses IPO or spin-off dates as a selection criterion.

    • Value: claims exposure to the value side of the style spectrum.

    • Vanilla: intends to offer standard exposure to a market segment.