Toews Launches HRSK, a Risk-Managed Equity ETF Built to Help Investors Stay the Course

Seeking Equity Growth Without Simply Accepting Full Market Downside

The fund seeks long-term capital appreciation and income by maintaining exposure primarily to large-cap U.S. equities through S&P 500 stocks, S&P 500 futures, and ETFs tracking the broad U.S. equity market.

Unlike traditional defensive strategies that may reduce equity exposure or cap upside participation, HRSK is designed to remain invested while actively managing downside risks. The strategy employs long-dated put options (LEAPS) as a form of portfolio protection and may use shorter-dated options to help reduce the cost of protection, generate income, and manage volatility.

The approach is built around two key ideas: that severe market losses are impossible to consistently predict, and that continuously purchasing downside protection without an efficient cost-management process can weigh on long-term returns.

As a result, HRSK seeks to provide investors with a strategy that can participate in equity market gains while increasing its risk management efforts as market stress intensifies.

A Behavioral Approach to Navigating Market Cycles

Toews has focused on the relationship between market volatility and investor decision-making since its founding in 1994. The firm believes that reducing the severity of portfolio swings may help investors maintain discipline and avoid emotional decisions during periods of market stress.

This makes HRSK potentially suitable for several portfolio roles. It can serve as a core equity allocation for investors seeking long-term growth with additional downside awareness, a complementary risk-managed sleeve alongside traditional equity holdings, or a potential alternative to a portion of a fixed-income allocation for investors looking for higher return potential.

The strategy may particularly appeal to investors nearing retirement or those with lower tolerance for large market drawdowns who still want exposure to U.S. equities.

Launching With Immediate Scale Through a Tax-Aware ETF Structure

HRSK enters the market with an additional structural feature: it was seeded through a Section 351 ETF exchange. This mechanism allows eligible investors to contribute appreciated securities into the ETF structure on a tax-deferred basis, providing advisors with a potential way to reposition client portfolios without immediately realizing capital gains, subject to applicable requirements.

“A Section 351 ETF exchange addresses a significant friction point for advisors and their clients,” said Eben Burr, President of Toews Asset Management. “It allows for the transition of eligible appreciated securities into a hedged strategy with immediate scale, prioritizing tax-awareness from day one.”

Bringing Risk Management Into the Modern ETF Era

As investors continue to look for ways to balance growth opportunities with protection against unexpected market shocks, risk-managed ETFs have become an increasingly important segment of the investment landscape.

With HRSK, Toews combines broad U.S. equity exposure, options-based hedging, and a behavioral investing framework into a single ETF designed to help investors pursue long-term growth while remaining invested through changing market environments. 

About the Issuer

Toews Asset Management is a specialist investment firm focused on managed-risk strategies and behavioral investing. Founded in 1994, the firm develops ETFs, mutual funds, and model portfolios designed to pursue competitive long-term returns while helping investors navigate the psychological challenges of market volatility. Through its Behavioral Investing Institute, Toews also provides educational resources and practical tools to help financial advisors strengthen client relationships and encourage more disciplined investment decision-making.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.