Global X NASDAQ 100® Tail Risk ETF (QTR)

Overview

The Global X NASDAQ 100u00ae Tail Risk ETF (QTR) seeks to provide investors with returns that correspond to the price and yield performance, before fees and expenses, of the Nasdaq-100u00ae Tail Risk Index. It aims to offer protection against significant market declines, specifically those affecting the Nasdaq-100.

Reputation and Reliability

Global X ETFs is a well-known ETF provider with a strong track record of offering innovative and specialized investment solutions.

Management Expertise

Global X has a dedicated team with expertise in quantitative investing and derivatives strategies, which is crucial for managing a tail risk ETF.

Goal

The primary investment goal of QTR is to provide downside protection against significant market declines in the Nasdaq-100 index.

Investment Approach and Strategy

Strategy: QTR does not aim to track the Nasdaq-100. Instead, it uses a quantitative model that dynamically allocates between Nasdaq-100 stocks and options designed to mitigate tail risk.

Composition QTR's portfolio primarily consists of Nasdaq-100 stocks and exchange-listed options on the Nasdaq-100 index. The options are selected to provide potential downside protection.

Market Share: Market share data for specific tail risk ETFs can fluctuate and is not readily available in a consolidated format. Assessing market share precisely requires analyzing the specific product landscape and fund flows.

Total Net Assets (AUM): 18480000

Key Competitors

• ProShares VIX Short-Term Futures ETF (VIXY)
• Simplify Tail Risk Strategy ETF (CYA)
• Cambria Tail Risk ETF (TAIL)

Competitive Landscape

The tail risk ETF landscape is competitive, with various funds employing different strategies to provide downside protection. QTR's focus on the Nasdaq-100 and its quantitative approach differentiates it. Advantages include specific focus, and a rules-based approach. Disadvantages include complexity and possible underperformance compared to other tail risk strategies.

Historical Performance: Historical performance data needs to be retrieved from financial data providers and analyzed to assess the ETFu2019s performance over various time periods.

Benchmark Comparison: The ETF's performance should be compared against a relevant benchmark, such as the Nasdaq-100 or a custom tail risk index, to evaluate its effectiveness in achieving its investment objective.

Expense Ratio: 0.5

Average Trading Volume

The ETF's average trading volume fluctuates, but generally, it has relatively lower trading volumes compared to broader market ETFs, affecting ease of trading.

Bid-Ask Spread

The bid-ask spread varies with market conditions but may be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Economic indicators, volatility levels, and investor sentiment significantly impact QTR. Increased market uncertainty typically leads to higher demand for tail risk protection.

Growth Trajectory

QTR's growth is tied to investor demand for downside protection. Changes to the quantitative model or holdings occur to optimize tail risk mitigation.

Competitive Edge

QTR's competitive advantage lies in its specific focus on mitigating tail risk within the Nasdaq-100, a technology-heavy index. This targeted approach can be appealing to investors particularly concerned about tech sector volatility. The fund's quantitative, rules-based strategy helps to ensure consistency in its approach. Also, Global X ETF's reputation and expertise in offering innovative investment solutions further bolsters its position.

Volatility

QTR's historical volatility can be high due to its use of options and its focus on mitigating downside risk, which inherently involves exposure to volatile instruments.

Market Risk

The primary market risk is related to the performance of the Nasdaq-100. If the Nasdaq-100 performs well without significant declines, QTR may underperform compared to a simple Nasdaq-100 tracking ETF.

Ideal Investor Profile

The ideal investor for QTR is one seeking to hedge their portfolio against potential downside risk in the Nasdaq-100, particularly those with significant exposure to technology stocks.

Market Risk

QTR is most suitable for investors with a moderate to high-risk tolerance who understand the complexities of options strategies and are looking for a tool to manage downside risk, either for long-term or strategic reasons.

Global X NASDAQ 100u00ae Tail Risk ETF (QTR) offers downside protection against significant market declines in the Nasdaq-100 by employing a quantitative model and using options. It is designed for investors seeking to hedge against potential tail risk, particularly in the technology sector. The fund's performance depends on market volatility and the effectiveness of its options-based strategy. While it offers downside protection, it may underperform during periods of market stability. Its higher expense ratio and potentially wider bid-ask spreads need to be considered.

Data Sources:

• Global X ETFs Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.