Aggressive Indexed Risk Control™
An innovative strategy for investors that want to excel in growth without giving up downside protection.
Baton_Green
One may be willing to accept higher risk in their portfolio but that doesn't take away the significance of losing big when market downturns happen. Build created a new strategy that allows investors to opt in for high growth while seeking to reduce loss during those major down markets. Our approach allows us to achieve this smoother ride without taking on significant equity positions – which can add unnecessary risks to a portfolio – our strategy reduces equity exposure to less than 40%. We utilize long-only call options to magnify the upside of equity markets and to hedge against volatility.
Aggressive Indexed Risk Control Performance

Year to Date 

N/A (-0.30% since inception)

1 Month

-4.41%

3 Month

N/A

1 Year

N/A

$$$

Components of Aggressive Indexed Risk Control
A Core of Fixed Income That Seeks To Preserve Capital

The fixed income core accounts for the majority of assets in the portfolio. We focus on quality to mitigate credit risk and duration to mitigate interest rate risk. This strategy strives to maintain a level of at least 60% fixed income and cash.

Average Quality: A
Average Duration: 1.47 years
*As of 9/30/21

An Overlay of Call Options That Seek Capital Appreciation

By investing long in call options, the strategy limits potential losses in the options overlay to a known, fixed amount, while providing the possibility for unlimited upside potential. Additionally, the strategy invests in call options of the VIX Index to hedge against volatility.

Equity Exposure: S&P 500
Volatility Hedge: VIX Index

 

A Quantitative Framework Powered by Data Science

Build’s proprietary quantitative construct provides efficiencies to limit downside risk, capture growth, and deliver a repeatable and smoother experience for the investor.

Strategy Composition as of 9/30/21
5

Strategy Allocation

• Fixed Income: 73.99%
• Derivatives: 20.23%
• Cash: 5.78%

5

Sector Weight

• Corporate: 51.4%
• Derivatives: 20.23%
• US Government: 14.39%
• Securitized: 8.2%
• Cash: 5.78%

5

Top Five Holdings

• Vanguard S/T Corp Bond ETF: 29.99%
• iShares Floating Rate Bond ETF: 15.51%
• Invesco Ultra Short Duration ETF: 9.65%
• SPDR Port. Morg. Backed Bond ETF: 7.92%
• US Dollar: 5.78%

Availability

5

Collective Investment Trust

Available as a CIT for ERISA accounts 

 

5

Separately Managed Account

For Advisors looking for a more customized investment strategy

Indexed Risk Control Fact Sheet

Contact Us

Build Asset Management, LLC (a/k/a Build Asset Management and/or GetBuilding.com) is an investment adviser registered with the U.S. Securities and Exchange Commission.  Registration of an investment adviser does not imply any skill or training.  Build Asset Management does not provide legal or tax advice.  Please consult your legal or tax professionals for specific advice.

Build does not guarantee any minimum level of investment performance or the success of any index portfolio, index, mutual fund or investment strategy. Past performance does not guarantee future results. There is a potential for loss in any investment, including loss of principal invested. All investments involve risk, and different types of investments involve varying degrees of risk. Investment recommendations will not always be profitable.

No representation is being made that any client account will or is likely to achieve profit or losses similar to those shown in hypothetical back-tested performance. Impacts of federal and state taxes and trading costs are not included in the results of index portfolio or index returns. Hypothetical back-tested performance information shown in text, charts, tables and graphs is provided for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any types of securities. Unlike  actual performance, hypothetical, back-tested or simulated results are achieved by means of the retroactive application of a back-tested model itself designed with the benefit of hindsight. The back-testing of performance differs from actual performance because the allocation rules may be adjusted at any time, for any reason, and can continue to be changed until desired or better performance results are achieved. Back-testing does not reflect actual trading in any account.

Strategy composition information such as strategy allocation, sector weight, and top five holdings is provided as of a specific date and is subject to change.  The top five holdings are representative of the model portfolio and actual account holdings may vary due to inflows, outflows, liquidity needs or other requirements of the account. It should not be assumed that an investment in the securities identified in the top 5 holdings was or will be profitable.  The holdings identified do not represent all of the securities purchased, sold, or "recommended for our clients." To obtain the contribution calculation methodology and a complete list of every holding’s contribution to the overall portfolio’s performance during the period, please contact info@getbuilding.com.

For more information contact us at (833) 852-8453.  General Disclaimers.

Privacy Policy