- I've been a buyer of NUSI to the point where it's my second-largest position. And if the new year ushers in some selling, NUSI is still a good ETF to own.
- Though NUSI has a similar portfolio as the NASDAQ-100 index (QQQ), it uses a very defensive collar option strategy on 100% of the notional value of the portfolio.
- This makes NUSI act more like a bond in terms of its narrow movements, especially for the period after the options are initiated, like beginning again tomorrow.
- But if you own NUSI, you may have noticed that it has been following the QQQs 1-for-1 this past week or so. How can that be if the fund is supposed to be uber defensive?
For further details see:
Equity ETFs: Last Day For NUSI's December Options