New ETF Tries To Cushion Market Chaos—Then Cash In On The Comeback

TrueShares has expanded its lineup of actively managed hedged strategies with the launch of the TrueShares Equity Hedge ETF (BATS:ONEH). The new ETF is designed to offer downside protection during volatile markets while keeping a foot in the door for potential rebounds. It introduces what the issuer calls a "hedge and recovery" approach by pairing an always-on defensive posture with a tactical mechanism to re-engage when markets turn. According to TrueShares, the structure is designed for investors looking for ongoing protection without sacrificing the ability to participate in recovery phases. ONEH is built around a strategic long put position that remains in place at all times, aiming to benefit during market drawdowns. Unlike traditional hedging strategies that may simply bank gains when volatility spikes, ONEH adds a second layer: when the hedge appreciates, a portion of those gains is harvested and redeployed into call options. That call overlay is intended to capture upside if markets rebound, giving the ETF a dynamic profile that seeks to smooth volatility without fully exiting risk assets. Expanding A Growing Hedged ETF Suite The launch of ONEH builds on TrueShares' broader push into option-based risk management strategies. The firm was an early entrant into the buffered ETF space, debuting its first uncapped buffered ETFs in 2020. That lineup has since grown to 12 monthly funds that aim to provide upside participation while cushioning downside losses, typically in the 8% to 12% range, through options strategies. TrueShares has also leaned into wrapper and fund-of-funds designs like the TrueShares Seasonality Laddered Buffered ETF (BATS:ONEZ), which packages multiple buffered exposures into a single vehicle. ONEH joins a slate of newer dynamic hedging products from the issuer, including the TrueShares Quarterly Bull Hedge ETF (BATS:QBUL), TrueShares Quarterly Bear Hedge ETF (BATS:QBER), and the TrueShares ConVex Protect ETF (BATS:PVEX). With market volatility remaining top of mind for investors, the launch aims to address the growing demand for ETFs that offer both protection and a plan for what comes after the drawdown. Image: Shutterstock