“Black Swan” ETFs Enjoy A Recent Gain In Popularity — Are Investors Prepping For A Crash?

  • Dan Cupkovic, a developer of the underlying index for three “Black Swan” ETFs, has noticed an increase in pessimism from investors recently and is prepared for a potential stock market crash.
  • A “black swan” is an exceedingly rare event that can trigger a significant stock market crash, and Cupkovic has developed a suite of three exchange-traded funds to hedge against poor market performance.
  • “The likelihood that we see a more extensive downside is increasing,” Cupkovic said in a recent interview. “Everyone’s ready for something bad to happen, and there’s clearly heightened fears that the bubble will pop.”

George Glover from Insider writes:

“As the developer of the underlying index for three ‘Black Swan’ ETFs, Dan Cupkovic has to be particularly prepared for a potential stock market crash. And due to macro volatility and geopolitical tensions, he’s noticed more pessimism from investors in recent months.

“The likelihood that we see a more extensive downside is increasing,” ARGI Investment Services’ Cupkovic told Insider in a recent interview. “Everyone’s ready for something bad to happen, and there’s clearly heightened fears that the bubble will pop.”

A “black swan” is an exceedingly rare event that can trigger a serious stock market crash and, Cupkovic has developed a suite of three exchange-traded funds to A black swan is an extremely rare event that triggers a significant market crash. Cupkovic worked with Amplify Investments to develop a suite of three exchange-traded funds, trading under the tickers SWAN, QSWN, and ISWN, to offer returns in case that happens. They are designed to respectively hedge against poor performance from the S&P 500, Nasdaq, and international markets thanks to investments in Treasurys and long-term call options.

“Those are two very diversely correlated assets, and the intermediate-term treasuries act as a sort of safety belt,” Cupkovic told Insider. “That makes for a very appetizing risk-return dynamic.”

Markets were choppy in January, with growth stocks noticeably struggling. That turbulence could continue, according to Cupkovic – which would be good news for the three black swan ETFs.

“The black swan strategy sings when the market starts to lose more than 10%,” he said. “I think we could be set for a really poor year – what happened in January might just be a normal correction with more losses to come.”

Cupkovic shared three market risks he’s particularly worried about…”

See full story here.



Categories: Business, Economy, Society, Tech

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