JPMorgan International Hedged Equity Laddered Overlay ETF(AMEX:HOLA)

HOLA invests in international equities across all market capitalizations, paired with a continuous market hedge using a put spread collar. The portfolio generally reflects the sector and geographic makeup of the MSCI EAFE Index, though the manager can adjust exposures as needed. The fund uses a laddered options overlay by buying put options on MSCI EAFE ETFs, staggered across three overlapping three-month periods so that part of the hedge resets each month. The hedge combines higher-strike long puts with lower-strike short puts to form a put spread, partially funded by selling calls, which limits potential gains. This approach seeks to reduce downside risk and limit losses during market declines, although it may underperform when markets rise or offer less protection in modest declines. Over a full market cycle, the fund aims to deliver capital appreciation with less volatility than traditional equity strategies.