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ZHDG
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ZEGA Buy and Hedge ETF (ZHDG)

Upturn stock ratingUpturn stock rating
$21.55
Last Close (24-hour delay)
Profit since last BUY6.31%
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Consider higher Upturn Star rating
BUY since 37 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
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Upturn Advisory Summary

07/03/2025: ZHDG (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type ETF
Historic Profit 16.94%
Avg. Invested days 56
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 5.0
ETF Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 07/03/2025

Key Highlights

Volume (30-day avg) -
Beta 0.76
52 Weeks Range 18.26 - 21.90
Updated Date 06/29/2025
52 Weeks Range 18.26 - 21.90
Updated Date 06/29/2025

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ZEGA Buy and Hedge ETF

ETF Overview

overview logo Overview

The ZEGA Buy and Hedge ETF (ZHDG) aims to provide investment results that correspond to the total return performance of a strategy that seeks to generate income by selling covered calls on a portfolio of large-cap U.S. stocks while hedging downside risk by purchasing put options.

reliability logo Reputation and Reliability

ZEGA Financial is a relatively smaller ETF issuer. Their reputation is still developing, but they are known for options-based strategies.

reliability logo Management Expertise

ZEGA Financial's management team has experience in options strategies and income generation.

Investment Objective

overview logo Goal

To generate income and provide downside protection.

Investment Approach and Strategy

Strategy: ZHDG uses a covered call strategy on a portfolio of large-cap U.S. stocks, combined with a protective put option strategy.

Composition Primarily large-cap U.S. equities and options (covered calls and protective puts).

Market Position

Market Share: Market share is relatively small compared to larger, more established covered call ETFs.

Total Net Assets (AUM): 31400000

Competitors

overview logo Key Competitors

  • QYLD
  • XYLD
  • JEPI
  • TLTW

Competitive Landscape

The covered call ETF market is competitive, with several established players like QYLD and XYLD holding significant market share. ZHDG differentiates itself through its hedging strategy, potentially reducing downside risk compared to competitors. However, this added layer of protection may come at the cost of lower income generation during bull markets. Its smaller AUM and newer status may be a disadvantage against larger competitors.

Financial Performance

Historical Performance: Historical performance data should be reviewed over various time periods to assess the effectiveness of the buy-write and hedge strategy.

Benchmark Comparison: A relevant benchmark for comparison would be an index of large-cap U.S. stocks (like the S&P 500) with and without a covered call overlay.

Expense Ratio: 0.99

Liquidity

Average Trading Volume

The average trading volume is moderate, which could impact the ease of buying and selling shares, particularly in larger quantities.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume, which may impact the cost of trading.

Market Dynamics

Market Environment Factors

Economic indicators, interest rate movements, market volatility, and investor sentiment towards income-generating assets influence ZHDG's performance.

Growth Trajectory

The growth trajectory depends on investor demand for covered call strategies with downside protection. Changes in strategy or holdings would be reflected in fund documentation.

Moat and Competitive Advantages

Competitive Edge

ZHDG's competitive edge lies in its combination of covered calls and protective puts, offering a balance between income generation and downside risk mitigation. This dual strategy differentiates it from simpler covered call ETFs. Its ability to provide a more stable return profile during market downturns could attract risk-averse investors. The active management approach might also give it an advantage, if the manager makes the right decisions.

Risk Analysis

Volatility

Volatility depends on the underlying assets and the effectiveness of the hedging strategy. Historical volatility data should be consulted.

Market Risk

Market risk is associated with the underlying large-cap U.S. equities. Options strategies can also introduce complexity and potential for losses.

Investor Profile

Ideal Investor Profile

The ideal investor is risk-averse, seeking income and downside protection, and comfortable with options-based strategies.

Market Risk

ZHDG is suitable for long-term investors seeking income and downside protection, but not ideal for those looking solely for maximum capital appreciation or passive index tracking.

Summary

ZEGA Buy and Hedge ETF (ZHDG) aims to generate income and protect against downside risk through a covered call strategy combined with protective put options. This makes it suitable for risk-averse investors seeking income and downside protection. It distinguishes itself from competitors by offering this integrated hedge, potentially reducing drawdowns. However, the expense ratio is higher than some competitors and the AUM is relatively small. Its performance is dependent on the manager's active decisions and the underlying market conditions.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • ETF.com
  • ZEGA Financial Website
  • Morningstar
  • Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About ZEGA Buy and Hedge ETF

Exchange NYSE ARCA
Headquaters -
IPO Launch date -
CEO -
Sector -
Industry -
Full time employees -
Website
Full time employees -
Website

The fund invests in a combination of options, as well as fixed income securities, or other income producing securities, including preferred shares, through ETFs or other investment companies or through direct investments. The sub-adviser seeks to achieve exposure to the performance of the U.S. large capitalization equity market, generally recognized as the S&P 500® Index, through call index options, call options on the SPDR S&P 500 ETF Trust or other ETFs that track the S&P 500, and FLexible EXchange® Options. The fund is non-diversified.