Better Indexes.®
Superior Absolute and
Risk-Adjusted Returns
Compound Annual Return:
12.953%
S&P 500 Total Return Index
Compound Annual Return:
11.453%
Substantially Better
Risk-Adjusted Returns
Annualized Sharpe Ratio:
1.74
S&P 500 Index
Annualized Sharpe Ratio:
1.18
Bull Index
Bear Index
Nations® Core
Indexes
Nations Core Indexes are a significant improvement over existing covered call and buy write vehicles.
Nations Core Indexes produce superior returns with less risk.
Nations® Low Volatility
Indexes
Nations Low Volatility Indexes are a major advance in hedged investing.
Nations Low Volatility products take advantage of option skew and the term structure of options to generate substantially superior risk-adjusted returns.
Nations® Better Beta®
Bull Indexes
Nations Better Beta® Bull Option Levered Indexes are the first indexes to use an innovative strategy that generates leverage when markets rally without generating leverage when they fall.
The result is a superior vehicle for both investors and speculators.
Nations® Better Beta®
Bear Indexes
Nations Better Beta® Inverse Option Levered Indexes are superior to techniques for generating inverse leverage.
All Nations Option Levered products generate leverage in the gain direction without generating leverage in the loss direction.
Nations Better Beta Bear indexes are superior tools for both hedgers and speculators.
Some are calling options the perfect asset since they provide superior risk/reward profiles when combined with underlying asset portfolios
All Nations® option enhanced strategies combine underling asset portfolios with systematic, theoretically robust option methodologies and result in superior investment vehicles.
Nations® option enhanced strategies take advantage of the unique synergy that results from the combinations of underlying asset portfolios and covered options. The heart of that synergy includes:
Diversification – Diversification is achieved through the negative correlation to the underlying asset portfolio fo the option portfolio.
Option Price Premium – Over time, the prices received by option sellers (implied volatility) is greater than the subsequent value of those options (realized volatility). This phenomenon exists for several reasons including the demand for protective options from hedgers and the asymmetrical nature of returns for option sellers.
Volatility Skew – Some options are consistently more expensive than other options. Nations Indexes take advantage of this skew by selling options that are more expensive and buying options that are less expensive.
Option Quantity Modulation – Nations strategies objectively modulate the number of options sold in order to sell more options when options are expensive and to sell fewer options when options are less expensive.
Nations Strategy Indexes
Large Cap Core
Nations Core Indexes are a significant improvement over existing covered call and buywrite vehicles. Returns for the Nations Core Indexes beat those of the underlying index and existing covered call and buywrite indexes.
Large Cap Low Volatility
Nations Low Volatility Indexes are a major advance in hedged investing. Nations Low Volatility products take advantage of this option skew and the term structure of options to generate risk-adjusted returns superior to the those of the underlying index and existing collar indexes.
Better Beta® Bull
Nations Better Beta® Option Levered Indexes are an improvement over current techniques for generating leveraging. Nations Option Levered products use options to generate leverage via a 1×2 option strategy. The resulting index is superior for several reasons since it generates superior risk-adjusted returns and doesn’t lever losses.
The Nations Better Beta® indexes provide Logical Leverage® because they lever returns in the gain direction without levering losses.
Better Beta® Bear
Nations Better Beta® Inverse Option Levered Indexes are an improvement over current techniques for generating inverse leveraging. Nations Option Levered products use options to generate leverage via a 1×2 option strategy. The resulting index takes advantage of skew to generate substantially superior risk-adjusted returns.
Logical Leverage® makes the Nations Better Beta® Bear Index the best way to hedge against, or speculate on, a drop in equity prices.