We offer the following risk-managed index strategies for investors who want tax-efficient exposure to specific U.S. stock market indexes with comparatively lower downside risk.

Risk-Managed S&P 500 Index Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy seeks to produce returns that are comparable to those of the S&P 500 Index over a full market cycle, with substantially lower downside risk, by combining an investment in the SPDR S&P 500 Index ETF (SPY) with the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is a risk-controlled S&P 500 stock market index investment strategy. Fact Sheet>

Risk-Managed U.S. Small Cap Index Strategy

This strategy seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy seeks to produce returns that are comparable to those of the Russell 2000 Small Cap Index over a full market cycle, with substantially lower downside risk, by combining an investment in the iShares Russell 2000 Index ETF (IWM) with the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is a risk-controlled U.S. small cap stock market index investment strategy. Fact Sheet>

Risk-Managed U.S. Real Estate Index Strategy

This strategy seeks to provide favorable long-term total returns, through both capital appreciation and current income, by investing in an index of equity securities of companies principally engaged in or related to the real estate industry, while also providing downside protection against major market declines. More specifically, this strategy seeks to produce returns that are comparable to those of the MSCI U.S. Investable Market Real Estate 25/50 Index over a full market cycle, with substantially lower downside risk, by combining an investment in the Vanguard Real Estate Index ETF (VNQ) with the application of a proprietary, multi-factor market-timing hedge as a portfolio overlay. In summary, this strategy is a risk-controlled U.S. real estate equity index investment strategy. Fact Sheet>

Risk-Managed Core Index Strategy

This strategy is a composite or multi-strategy investment strategy that seeks to provide long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy seeks to produce returns that are comparable to the S&P 500 Index over a full market cycle, with substantially lower downside risk, by investing in a combination of risk-managed U.S. stock and equity real estate index investments along with an allocation to gold. In summary, this strategy is a tax efficient, core investment strategy that provides the benefits of risk-controlled equity exposure with the additional diversification benefits of gold. Fact Sheet>

Risk-Managed Multi-Asset Index Strategy

This strategy is a multi-asset investment strategy that seeks to provide moderate long-term capital appreciation over the full market cycle while also providing downside protection against major market declines. More specifically, this strategy seeks to produce returns that are greater than those of a traditional 60% stock / 40% bond portfolio over a full market cycle, with lower downside risk, by investing in a combination of risk-managed and unhedged U.S. equity index investments along with an allocation to intermediate term U.S. government bonds and gold. In summary, this strategy is a tax efficient, core, multi-asset investment strategy that combines the benefits of risk-controlled equity exposure with the additional security of U.S. government bonds and gold. Fact Sheet>

Contact Us to Learn More

To learn more about our strategies, please contact Mark Ricardo, President and Chief Investment Officer, at 703-740-1765 or mark@mercapitalmanagement.com.

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