WEBs Investments Inc. and Westwood Holdings Group Launch Defined Volatility℠ ETF Series with Debut of DVSP and DVQQ

Core Viewpoint - WEBs Investments Inc. and Westwood Holdings Group have launched the WEBs Defined Volatility ETF series, which aims to provide a stable investment experience by dynamically adjusting exposure to equity markets based on real-time volatility [1][2][3] Group 1: ETF Features and Strategy - The Defined Volatility ETFs track the Syntax Defined Volatility U.S. Large Cap 500 Index and the Syntax Defined Volatility Triple Qs Index, adjusting exposure to match a target risk level [2][13][14] - During low-volatility periods, the ETFs utilize total return swaps to amplify exposure, while in high-volatility periods, they shift towards cash and U.S. Treasuries to cushion against losses [2][3] - This adaptive strategy aims to smooth the investment journey and enhance risk-adjusted return potential for investors [2][3] Group 2: Management and Expertise - The Defined Volatility strategy was developed in 2023 by a team of ETF industry veterans with over a century of combined experience [4] - Ben Fulton, a pioneer in the ETF industry, previously grew Invesco's PowerShares ETF platform from $200 million to$80 billion [5] - The partnership between WEBs and Westwood combines innovative volatility management with established sales and distribution capabilities [6][7] Group 3: Investment Potential - The Defined Volatility ETFs offer uncapped upside potential to the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ), allowing significant participation in market gains while providing stability during turbulent periods [3] - Unlike many option-based strategies, these ETFs aim to generate dividend income, adding another layer of potential value for investors [3] - The swap-based strategy employed by the ETFs is designed to enhance tax efficiency, avoiding substantial tax consequences typically associated with volatility-managed funds [3]