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![\"Apple\"](\"https:\/\/wealthofgeeks.com\/wp-content\/uploads\/2023\/09\/Roth-Conversion-Ladder-1.webp\" "\\"Apple\\"")
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Investors who like to grow their returns in sequential, gradated form have a new exchange-traded fund (ETF) to meet and greet. <\/span><\/p>\n On Tuesday, September 26, JPMorgan <\/span>launched the Avantis U.S. Large Cap Equity ETF<\/span><\/a> on the New York Stock Exchange, Arca, under the friendly-sounding ticker “HELO.”<\/span><\/p>\n HELO provides hedged exposure to U.S. large-cap stocks. It deploys a “laddered options strategy” to protect investors from downside risk. So-called laddered options <\/span>are a kind of exotic option <\/span><\/a>that allows the holder to lock in partial profits once the underlying stock has reached predetermined price levels (called “rungs”). HELO’s laddered overlay consists of three hedges that each run for three months and are separated one month apart. <\/span><\/p>\n HELO says it is “<\/span>maintaining characteristics similar”<\/span><\/a> to attempts to the S&P 500 and aims to match much of the gains of the S&P 500 while limiting volatility and downside risk. It currently has 170 holdings, with information technology as the largest sector (27.4%). Microsoft and Apple are its largest holdings at a weighting of over 7% each. <\/span><\/p>\n The ETF is jointly led by portfolio managers Hamilton Reiner and Raffaele Zingone, who together have almost seven decades of professional experience between them. <\/span><\/p>\n “Regardless of the environment, equity investors are focused on managing risk,” Reiner said. “We expect strong demand for HELO as investors look for outcome-oriented solutions that provide the hedged experience through the ETF wrapper.”<\/span><\/p>\n This sentiment was mirrored by JPMorgan’s global head of ETF solutions, Bryon Lake. <\/span><\/p>\n “We listen to our clients,” Lake said. “And their request is to have a strategy like this available in the ETF wrapper. Hamilton and team have demonstrated strong success with active ETFs like JEPI and JEPQ.”<\/span><\/p>\n JPMorgan is already home to the largest active ETFs<\/a> in the world. In April, JPMorgan Equity Premium Income ETF (“JEPI”) usurped its colleague, JPMorgan Ultra-Short Income ETF (“JPST”), which had previously held the title of biggest active ETF, reaching nearly 25 billion in <\/span>assets under management<\/span><\/a>. <\/span><\/p>\n Laddered Options<\/b><\/p>\n