TRSK – Janus Velocity Tail Risk Hedged Large Cap ETF

Hedging Equity Tail Risk with an Innovative Volatility Strategy

Fund Objective

TRSK seeks to provide investment results that correspond generally, before fees and expenses, to the performance of the VelocityShares Tail Risk Hedged Large Cap Index.

Client Commitment

This liquid alternative ETF addresses the challenge of efficiently hedging the downside risk of an equity portfolio, and is designed to provide a systematic solution to that problem via exposure to VIX futures. It’s comprised of an 85% exposure to large-cap equities (S&P 500® Index) and a 15% exposure to a volatility component designed to efficiently hedge against large market declines. TRSK automatically rebalances back to these target allocations at each month-end.

Why Invest in TRSK

SYSTEMATIC VOLATILITY STRATEGY

This comprehensive solution pairs a 15% allocation to a systematic volatility-based hedge with an 85% allocation to the S&P 500® Index. The volatility component adjusts its exposure each day based on the daily moves in short term VIX futures.

LOW COST, EFFICIENT HEDGE

Maintaining a constant long volatility hedge in a portfolio can be expensive. By dynamically shifting between long and short exposure to VIX futures, Janus’ volatility strategy seeks to capitalize on the negative correlation of VIX futures via a transparent, liquid and low-cost volatility hedge.

DESIGNED TO REDUCE TAIL RISK

With the potential to significantly reduce drawdown risk in the worst markets, TRSK can be considered a liquid alternative in a well-diversified portfolio.

FUND NEWS

The Street talks to Nick Cherney, CIO, VelocityShares at Janus Capital, about the spike in the VIX fear index and how investors can mitigate volatility in the market.