Brookmont Catastrophic Bond ETF (ILS)

The Brookmont Catastrophic Bond ETF is an exchange-traded fund from Brookmont Capital Management that invests in catastrophe bonds. These are insurance-linked securities issued on behalf of insurers and reinsurers, which pay investors interest but can lose principal if a specified natural disaster or other catastrophic event occurs.

Because catastrophe bond returns are tied mainly to insurance events such as hurricanes and earthquakes rather than to the economy, the asset class is generally viewed as having limited correlation with stocks and conventional bonds. The fund is managed rather than tied to a simple market index.