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In this episode of ETF Spotlight, I speak with Rodrigo Gordillo, president and portfolio manager of ReSolve Asset Management, about return-stacked ETFs.
Return stacking, also known as portable alpha, has been employed by institutions for a long time. It essentially involves using leverage to enhance overall returns and add diversification benefits. Now, thanks to ETFs, these sophisticated strategies have become accessible to individual investors.
In simple terms, layering one investment return on top of another achieves more than a dollar of exposure for each dollar invested. These products aim to reduce risks associated with leverage by stacking uncorrelated assets, as diversification is "the only free lunch" in investing.
ReSolve’s flagship fund, the Return Stacked U.S. Stocks & Managed Futures ETF (RSST) , invests in two complementary investment strategies: a U.S. equity strategy using the iShares S&P 500 ETF (IVV - Free Report) and S&P 500 E-Mini Futures contracts, and a managed futures strategy.
RSST, which is just a little over a year old, has already gathered over $220 million in assets. They now offer four more products: the Return Stacked Bonds & Managed Futures ETF (RSBT) , Bonds & Futures Yield ETF (RSBY) , Global Stocks & Bonds ETF (RSSB) , and U.S. Stocks & Futures Yield ETF (RSSY) .
We also discuss how these products should be used in a portfolio.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
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Return Stacked ETFs: What You Need to Know
In this episode of ETF Spotlight, I speak with Rodrigo Gordillo, president and portfolio manager of ReSolve Asset Management, about return-stacked ETFs.
Return stacking, also known as portable alpha, has been employed by institutions for a long time. It essentially involves using leverage to enhance overall returns and add diversification benefits. Now, thanks to ETFs, these sophisticated strategies have become accessible to individual investors.
In simple terms, layering one investment return on top of another achieves more than a dollar of exposure for each dollar invested. These products aim to reduce risks associated with leverage by stacking uncorrelated assets, as diversification is "the only free lunch" in investing.
ReSolve’s flagship fund, the Return Stacked U.S. Stocks & Managed Futures ETF (RSST) , invests in two complementary investment strategies: a U.S. equity strategy using the iShares S&P 500 ETF (IVV - Free Report) and S&P 500 E-Mini Futures contracts, and a managed futures strategy.
RSST, which is just a little over a year old, has already gathered over $220 million in assets. They now offer four more products: the Return Stacked Bonds & Managed Futures ETF (RSBT) , Bonds & Futures Yield ETF (RSBY) , Global Stocks & Bonds ETF (RSSB) , and U.S. Stocks & Futures Yield ETF (RSSY) .
We also discuss how these products should be used in a portfolio.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.