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ZEGA Buy and Hedge ETF (ZHDG)



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Upturn Advisory Summary
07/03/2025: ZHDG (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 Advisory Performance ![]() | ETF Returns Performance ![]() |
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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 |
Upturn AI SWOT
ZEGA Buy and Hedge ETF
ETF Overview
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.
Reputation and Reliability
ZEGA Financial is a relatively smaller ETF issuer. Their reputation is still developing, but they are known for options-based strategies.
Management Expertise
ZEGA Financial's management team has experience in options strategies and income generation.
Investment Objective
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
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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.