HCM Defender 500 Index ETF company info

What does HCM Defender 500 Index ETF do?
HCM Defender 500 Index ETF (NYSEARCA:LGH) focuses on providing investors exposure to the S&P 500 Index while aiming to defend against significant market downturns. This ETF employs a unique strategy that combines direct investments in the S&P 500 stocks with a defensive tactical overlay designed to protect against market volatility and potential losses. Through this approach, HCM Defender 500 Index ETF seeks to deliver a balance of growth and protection, making it an attractive option for investors who want to participate in the upside of the stock market while mitigating the risk of substantial downturns. Its primary objective is to outperform the S&P 500 in bear markets while aiming to capture most of the gains in bull markets, thereby offering a more stable investment option compared to direct index investments.
HCM Defender 500 Index ETF company media
Company Snapshot

Is HCM Defender 500 Index ETF a public or private company?

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Ownership
Public

How many people does HCM Defender 500 Index ETF employ?

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Employees
43

What sector is HCM Defender 500 Index ETF in?

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Sector
ETF

Where is the head office for HCM Defender 500 Index ETF?

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Head Office
New York, United States

What year was HCM Defender 500 Index ETF founded?

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Year Founded
2019
What does HCM Defender 500 Index ETF specialise in?
/Investment Services /Risk Management /Stock Index /Financial Planning /Asset Protection /Investment Portfolio

What are the products and/or services of HCM Defender 500 Index ETF?

Overview of HCM Defender 500 Index ETF offerings
Risk Management with Equity and Cash Exposure: LGH tracks a proprietary index that allocates holdings between U.S. large-cap stocks and U.S. Treasury securities (cash equivalents) based on a quantitative model. This strategy aims to reduce risk during market downturns by potentially increasing cash holdings when the model signals a higher risk of equity price decline.
Exposure to U.S. Large-Cap Stocks: When the model deems the market conditions favorable, LGH invests in a basket of large-capitalization stocks in the United States. These companies are generally well-established and have a history of financial stability, offering the potential for capital appreciation.
Cash Equivalents for Potential Stability: During periods when the model identifies a higher risk of equity price decline, LGH may hold a higher allocation in cash equivalents like Treasury bills. These investments offer lower potential returns but can provide stability and liquidity compared to stocks.
Passive Management: LGH likely tracks a proprietary index that uses a quantitative model to determine the allocation between equities and cash equivalents. The holdings are automatically adjusted based on the model's signals, potentially resulting in lower fees compared to actively managed ETFs with similar strategies.
Potential for Capital Appreciation: When the ETF invests in U.S. large-cap stocks, it offers the potential for growth as the underlying companies' stock prices increase. However, the overall returns may be lower compared to a pure large-cap stock ETF due to the cash allocation during certain periods.
Downside Risk Mitigation Potential: The core strategy of LGH focuses on potentially reducing downside risk during market downturns by shifting to cash equivalents. This can help mitigate losses compared to a traditional large-cap stock ETF, but it may also limit potential gains during strong market upswings.