INCOME STRATEGIES
Hedged Yield seeks attractive income through option-income ETFs while using TCM’s tactical hedging process to respond to changing equity-market risk.
Hedged Yield
How Hedged Yield Works
Generate Income
The strategy invests in option-income ETFs designed to generate distributions from equity and option premiums.
Monitor
TCM’s Volatility Dashboard tracks market and volatility indicators for changes in the equity risk environment.
View Dashboard Signals →
Hedge Tactically
The strategy may add volatility-based hedges when TCM’s signals indicate that market risk is increasing.
Rebalance
Income exposures and hedges are adjusted as conditions change, allowing the strategy to respond dynamically across market environments.
Hedged Yield seeks to generate attractive income through option-income ETFs rather than relying primarily on traditional fixed-income securities. Because these investments remain closely tied to equity markets, we believe they pair well with TCM’s tactical hedging process.
A Different Approach to Income.
Uses option-income ETFs to pursue distributions generated from equity exposure and option premiums.
Alternative Income Source
Seeks income from sources that may be less directly affected by changes in interest rates than traditional fixed income.
Less Rate Sensitive
Pairs equity-linked income exposure with TCM’s tactical hedging process to respond as market risk conditions change.
Risk-Responsive Hedging
Where Hedged Yield May Fit
For investors seeking meaningful option income exposure while retaining defensive flexibility.
Who it may be for
Hedged Yield may fit investors seeking an income-oriented allocation with a more responsive approach to downside risk. It can serve as a risk-managed income sleeve alongside traditional fixed-income and equity allocations.
Strategy Objective
Hedged Yield seeks attractive income through option-based equity strategies while using tactical hedges designed to help reduce downside exposure during periods of significant market stress.
Strategy Highlights
- ✓ Invests in option-income ETFs designed to generate distributions from equity exposure and option premiums.
- ✓ Seeks income that may be less directly sensitive to interest-rate changes than traditional fixed income.
- ✓ Uses TCM’s risk-responsive hedging process as market and volatility conditions change.
- ✓ Focuses on equity-linked exposures that we believe pair naturally with volatility-based hedges.
Key Facts
| Inception | 5/1/2021 |
| Strategy Type | Option Income |
| Benchmark | Bloomberg High Yield Bond Index |
| Primary Objective | Income + Growth |
| Risk Management | TCM Volatility Dashboard |
| Portfolio Structure | Income Exposure + Tactical Hedges |
How we put it all together
Our Volatility Dashboard combines these and other signals into a single framework that helps guide our hedging decisions. Learn more about our philosophy and process.