- ETJ is an option-based CEF that is uniquely positioned to provide protection against market downturns.
- The mechanism is an option collar strategy.
- ETJ's implementation of the collar strategy is more management intensive and more responsive to market changes than that of NUSI, an ETF that employs a coarser version of the collar.
- ETJ's successes during drawdowns are much more evident at NAV than at market pricing. This is due to shareholder tendencies toward panic selling in a market downturn despite owning the only fund that is designed to function best in precisely those conditions.
For further details see:
ETJ: 8.4% Distribution And Downside Protection