No, there are no additional costs. The portfolio’s constituent ETFs invest in options to provide downside protection. The expense of this protection is offset by setting an upside cap on returns. As a result, there are no additional costs other than the management fees charged within the constituent ETFs which are already reflected in their daily net asset values (NAVs).
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Are there any additional costs associated with the underlying constituents that help provide protection?
No, there are no additional costs. The portfolio’s constituent ETFs invest in options to provide downside protection. The expense of this protection is offset by setting an upside cap on returns. As a result, there are no additional costs other than the management fees charged within the constituent ETFs which are already reflected in their daily net asset values (NAVs).