AKRON, Ohio, Oct. 07, 2023 (GLOBE NEWSWIRE) — Valmark Advisers, Inc. (Valmark), a subsidiary of Valmark Financial Group, LLC, today notes the launch of the WisdomTree Target Range Fund (NYSE: GTR), an actively managed ETF that seeks to provide capital appreciation, with a secondary objective of hedging risk. In pursuing its investment objectives, GTR is based on the methodology of the TOPS® Global Equity Target Range™ Index.
The TOPS® Global Equity Target Range™ Index officially launched on March 19, 2023, as the first of two Target Range™ strategies available in the market.
The Index is based on principles from the TOPS® portfolio management program launched by Valmark Advisers in 2002, which makes Valmark Advisers one of the largest and longest running managers of ETF portfolios in the U.S. TOPS® Target Range™ represents the next era of evolution for Valmark Advisers, a proven innovator in the investment solutions space.
“We couldn’t be more excited to collaborate with WisdomTree on this cutting-edge solution,” said Michael McClary, Chief Investment Officer of Valmark Advisers. “I have known the leadership team at WisdomTree for many years, including Jonathan Steinberg, CEO, and Jeremy Schwartz, EVP, Global Head of Research. They wholeheartedly share our vision for developing and managing investment strategies designed to improve outcomes for investors.”
Target Range™ investing was developed to provide unique investment solutions designed to balance risk and reward. The TOPS® Global Equity Target Range™ Index provides investment exposure to four underlying ETFs through a 12-month rolling 15% call spread strategy, with monthly opportunities for upside restrikes. The Index manages downside risk for investors on an annual basis, while providing an opportunity to lock in investment returns during the year through the potential monthly restrikes. Restrikes reset the Target Range™ when an underlying component ETF’s value ends a qualifying month above the strike level of the short call option. The new Target Range™ locks in a higher strike level for the coming January on both the long call and short call which make up the underlying call spread.
“When Michael first shared the idea of Target Range™ investing with me, I knew it was a game changer for our industry and the investors we serve,” said Jeremy Schwartz, EVP, Global Head of Research at WisdomTree Funds. “The light bulb went off and I quickly saw how this strategy could make sense for many investors.”
Valmark continues to be uniquely positioned in providing solutions for tackling the real issues investors face. “Many ETFs launched in the last few years were designed to solve issues originally marketed by the industry itself,” said McClary. “TOPS® Target Range™ is an innovative solution designed to solve the concerns we hear from investors when putting together thousands of financial plans each year. Investors often express concerns about the risk of market crashes and struggle to stomach the day-to-day volatility of markets. Historically, the TOPS® Target Range™ indexes have reduced day-to-day volatility, compared to a similar long only exposure, and the strategy is designed to provide protections over annual periods against major market crashes.”
The TOPS® Target Range™ strategies represent a new way for investors to participate in markets. “Many investors need exposure to equities to reach their investment goals, however, full exposure to equities is too risky for many investors,” said McClary. “Historically, we have balanced this risk with bonds. TOPS® Target Range™ provides investors another choice, giving them the opportunity to limit equity risk, without relying upon bonds to be a substantial contributor to returns.”
Target Range™ investing sits in between the popular defined outcome solutions and a traditional asset allocation strategy. It is a turnkey, fully managed strategy that can be used as a buy-and-hold option or as a short-term investment.
The launch of GTR by WisdomTree comes on the heels of the recent TOPS® Target Range™ fund launch by Valmark within a Variable Insurance Trust (VIT) fund. With TOPS® being the leading independent manager of ETF-based portfolios within the VIT space and available through 20 different insurance companies already, it was a natural fit for TOPS® Target Range™ to be added to these important solutions provided by insurance companies. The TOPS® Global Target Range™ Portfolio within VITs was launched on September 20, 2023, with Securian Financial representing the first insurance carrier to make the fund available in the VIT space.
About Valmark Financial Group, LLC
Valmark Financial Group is a holding company of several subsidiaries, including Executive Insurance Agency, Inc., a national producer group; Valmark Securities, Inc., a broker-dealer and member of both FINRA and SIPC; Valmark Advisers, Inc., a U.S. Securities and Exchange Commission Registered Investment Adviser; and the Valmark Policy Management Company, LLC. Headquartered in Akron, Ohio Valmark Advisers is the Index Provider for the TOPS® Target Range™ Indexes. To learn more about Valmark Financial Group or TOPS®, visit https://www.valmarkfg.com/ or https://www.topsfunds.com.
Securities offered through Valmark Securities, Inc. Member FINRA/SIPC.
