 The
Leadershares Equity Skew ETF (SQEW) is an exchange-traded fund (ETF)
that seeks to provide investors with exposure to US large-cap stocks,
while also seeking to mitigate the impact of extreme market events.
The ETF's objective is to track the performance of the LeaderShares
Equity Skew Index, which is a proprietary index developed by the ETF's
issuer, LeaderShares.
SQEW invests in a portfolio of US
large-cap stocks included in the S&P 500 Index, with the goal of
providing investors with exposure to the US equity market, while also
seeking to mitigate the impact of extreme market events. The ETF's
holdings are selected based on factors such as liquidity, market
capitalization, and skewness, which is a measure of the asymmetry of a
distribution.
As of September 2021, the SQEW ETF has a net
asset value (NAV) of approximately $65 million and holds a portfolio
of over 150 US large-cap stocks. The ETF's expense ratio is 0.75%,
which is relatively high compared to other ETFs.
SQEW has a
track record of providing investors with solid returns, while also
seeking to mitigate the impact of extreme market events. Since its
inception in 2018, the fund has provided investors with an annualized
return of around 16% (as of March 23, 2023).
Overall, the
Leadershares Equity Skew ETF (SQEW) could be a good investment option
for investors looking to invest in US large-cap stocks, while also
seeking to mitigate the impact of extreme market events. However, as
with any investment, it is important to conduct thorough research and
consider factors such as risk tolerance, investment objectives, and
fees before making a decision. Additionally, investors should be aware
that the use of skewness as a factor in selecting holdings may involve
higher risks and greater volatility compared to traditional ETFs.
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