Parametric Hedged Equity ETF

PHEQ CUSIP: 61774R874 Morningstar Category: Options Trading
Market Price

as of 02/23/2024

$26.84

CHANGE

(0.56%)

$0.15

Nav

as of 02/23/2024

$26.83

CHANGE

(-0.33%)

-$0.09

PHEQ

CUSIP: 61774R874

MORNINGSTAR CATEGORY
Options Trading

Market Price

as of 02/23/2024

$26.84

Market Price Change

as of 02/23/2024

$0.15 (0.56%)

Nav

as of 02/23/2024

$26.83

Nav Change

as of 02/23/2024

-$0.09 (-0.33%)

Parametric Hedged Equity ETF
PHEQ CUSIP: 61774R874
 
 

Why PHEQ

Why PHEQ

Participate in U.S. large-cap equity market performance while seeking to mitigate losses through an option overlay hedging strategy.

Leverage Parametric’s industry-leading capabilities in options-based equity risk management solutions.

PHEQ delivers a low-cost efficient offering that seeks competitive risk-adjusted performance.

Participate in U.S. large-cap equity market performance while seeking to mitigate losses through an option overlay hedging strategy.

Leverage Parametric’s industry-leading capabilities in options-based equity risk management solutions.

PHEQ delivers a low-cost efficient offering that seeks competitive risk-adjusted performance.

Investment Objective

Seeks to provide capital appreciation while limiting losses experienced by investors (before fees, expenses, and taxes) through the incorporation of an option overlay hedge strategy. 

 
 
Pricing
Market Price

as of 02/23/2024

$26.84

Change

(0.56%)

$0.15

NAV

as of 02/23/2024

$26.83

Change

(-0.33%)

-$0.09

Premium/Discount

as of 02/23/2024

$0.01

Since Inception High
Market Price

as of 02/23/2024

$26.84

Since Inception Low
Market Price

as of 10/27/2023

$24.07

Since Inception High
NAV

as of 02/22/2024

$26.92

Since Inception Low
NAV

as of 10/27/2023

$24.09

30 Day Median
Bid/Ask Spread

as of 02/23/2024

0.37%

Pricing

Market Price

as of 02/23/2024

$26.84

Market Price change

as of 02/23/2024

$0.15 (0.56%)

NAV

as of 02/23/2024

$26.83

NAV Change

as of 02/23/2024

-$0.09 (-0.33%)

Premium/Discount

as of 02/23/2024

$0.01

Since Inception High

as of 02/23/2024

Market Price

$26.84

Since Inception Low

as of 10/27/2023

Market Price

$24.07

Since Inception High

as of 02/22/2024

NAV

$26.92

Since Inception Low

as of 10/27/2023

NAV

$24.09

30-Day Median Bid/
Ask Spread

as of 02/23/2024

0.37%

Historical Price

As of 02/23/2024 (updated daily upon availability)

    

Past performance is not indicative of future results.

 
 
Historical Price
As of 02/23/2024
(updated daily upon availability)
From
To
  

Past performance is not indicative of future results.

 
 

Premium/Discount

As of 02/23/2024 (updated upon availability)

Premium/Discount
As of 02/23/2024
(updated upon availability)

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

Past performance is not indicative of future results. The above frequency distribution chart presents information about the difference between the daily market price for shares of the Fund and the Fund's reported Net Asset Value. The amount that the Fund's market price is above the reported NAV is called the premium. The amount that the Fund's market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 p.m. EST).

Number of Days at Premium / Discount

Current Quarter Q1 ‘24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Since Inception
Premium 17 - - - - 38
NAV 2 - - - - 8
Discount 17 - - - - 40
 
 

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

No Chart Available

Past performance is not indicative of future results. The above frequency distribution chart presents information about the difference between the daily market price for shares of the Fund and the Fund's reported Net Asset Value. The amount that the Fund's market price is above the reported NAV is called the premium. The amount that the Fund's market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 p.m. EST).

 
 

Number of Days at Premium/Discount

Current Quarter Q1 ‘24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Since Inception
Premium 17 - - - - 38
NAV 2 - - - - 8
Discount 17 - - - - 40
 

Expense Ratio1

Gross

0.29%

Net

0.29%

 
Performance & Distributions

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent performance figures, please select the "daily" timeframe or call 1-800-836-2414. Investment returns and principal value will fluctuate and Fund shares, when redeemed, may be worth more or less than their original cost. For additional important information, please click here.

Returns

As of 02/23/2024 (updated upon availability)

1 Month 3 Months YTD 1 YR Since Inception
PHEQ Market Price (%) 1.59 5.91 3.07 - 9.22
PHEQ NAV (%) 1.51 5.91 2.99 - 9.18
S&P 500 Index (%) 2 4.76 12.10 6.91 - 17.00
1 Month 3 Months YTD 1 YR Since Inception
PHEQ Market Price (%) 2.44 - 5.96 - 5.96
PHEQ NAV (%) 2.32 - 6.00 - 6.00
S&P 500 Index (%) 2 4.54 - 9.44 - 9.44
Returns
As of
(updated daily upon availability)
  1 Mo 3 Mo YTD 1 YR Since Inception
PHEQ Market Price (%) 1.59 5.91 3.07 - 9.22
PHEQ NAV (%) 1.51 5.91 2.99 - 9.18
S&P 500 Index (%) 2 4.76 12.10 6.91 - 17.00
  1 Mo 3 Mo YTD 1 YR Since Inception
PHEQ Market Price (%) 2.44 - 5.96 - 5.96
PHEQ NAV (%) 2.32 - 6.00 - 6.00
S&P 500 Index (%) 2 4.54 - 9.44 - 9.44

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00pm net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

Growth of 10K

As of 01/31/2024 (updated monthly upon availability)

As of 01/31/2024 (updated monthly upon availability)

 

Past performance is not indicative of future results. The returns shown in the graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

 
 
 

Past performance is not indicative of future results. The returns shown in the graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Distributions

As of 02/23/2024 (updated as distributions are paid)

Distributions
As of 02/23/2024
(updated as distributions are paid)
Record Date Ex Date Payable Date Net Investment Income
($ Per Share)
Short-Term
Capital Gains
($ Per Share)
Long-Term
Capital Gains
($ Per Share)
Total
Capital Gains
($ Per Share)
12/19/2023 12/18/2023 12/22/2023 $0.449273 $0.000000 $0.000000 $0.000000
Record Date Ex Date Payable Date Net Investment Income
($ Per Share)
Short-Term
Capital Gains
($ Per Share)
Long-Term
Capital Gains
($ Per Share)
Total
Capital Gains
($ Per Share)
12/19/2023 12/18/2023 12/22/2023 $0.449273 $0.000000 $0.000000 $0.000000

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent performance figures, please call 1-800-836-2414. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. For additional important information, please click here.

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent performance figures, please call 1-800-836-2414. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. For additional important information, please click here.

 
Key Facts & Characteristics

Key Facts

 

Asset Class
U.S. Equity
CUSIP
61774R874
Ticker
PHEQ
Inception Date
10/16/2023
Investment Style
Active
Exchange
NYSE
Custodian
JP Morgan Chase Bank, N.A.
Benchmarks
S&P 500 Index 2
Benchmarks
S&P 500 Index 2
Distribution Frequency
Quarterly
Total Net Assets ($MM)

as of 02/23/2024

24.15
 
Characteristics3

Characteristics3

Updated Daily as of 02/23/2024

Shares Outstanding
900,000
Daily Volume
892
30-Day Avg Volume
3,223

Updated Monthly as of 01/31/2024

Weighted average market capitalization ($B)
763.79
Price/earnings (LTM)
24.17
Price/book
4.61
30 Day SEC Yield (%)
1.20
30 Day SEC Yield (unsub) (%)
1.20
Distribution Yield (%)
6.83
Top 10 Holdings

As of 02/23/2024 (updated daily upon availability)

Top 10 Holdings
As of 02/23/2024 (updated daily upon availability)
Ticker Holdings Type Security Identifier % of Fund Shares/Par Market Value
MSFT MICROSOFT CORP COMMON CUSIP 594918104 7.60% 4,471 1,834,630.14
AAPL APPLE INC COMMON STOCK CUSIP 037833100 6.81% 9,013 1,645,052.76
NVDA NVIDIA CORP COMMON STOCK CUSIP 67066G104 4.69% 1,436 1,131,812.12
AMZN AMAZON.COM INC COMMON CUSIP 023135106 3.97% 5,472 957,545.28
META META PLATFORMS INC COMMON CUSIP 30303M102 2.63% 1,313 635,531.39
GOOGL ALPHABET INC COMMON STOCK CUSIP 02079K305 2.16% 3,616 520,559.36
GOOG ALPHABET INC COMMON STOCK CUSIP 02079K107 1.90% 3,152 457,954.08
LLY ELI LILLY & CO COMMON CUSIP 532457108 1.71% 538 414,012.52
BRK/B BERKSHIRE HATHAWAY INC CUSIP 084670702 1.60% 925 385,928.50
JPM JPMORGAN CHASE & CO CUSIP 46625H100 1.57% 2,067 380,307.33

Holdings subject to change.

Holdings subject to change.

Composition

As of 01/31/2024 (updated monthly upon availability)

Composition

As of 01/31/2024 (updated monthly upon availability)

  Fund
Common Stock 99.03
Cash 0.97

May not sum to 100% due to the exclusion of other assets and liabilities.

  Fund
Information Technology 30.44
Financials 12.87
Health Care 12.49
Consumer Discretionary 10.32
Communication Services 9.18
Industrials 8.48
Consumer Staples 5.89
Energy 3.61
Materials 2.34
Utilities 2.20
Real Estate 2.18

May not sum to 100% due to the exclusion of other assets and liabilities.

May not sum to 100% due to the exclusion of other assets and liabilities.

Meet the Team
 
Portfolio Managers
Thomas Seto
Managing Director
33 years industry experience
James Reber
Managing Director
20 years industry experience
Alex Zweber
Managing Director
18 years industry experience
Michael Zaslavsky
Vice President
15 years industry experience
Larry Berman
Managing Director
33 years industry experience
 
Resources
Product Literature
 
 
Regulatory Documents
SAI
 
 
 
 
 

1 Where the net expense ratio is lower than the gross expense ratio, certain fees have been waived and/or expenses reimbursed. These waivers and/or reimbursements will continue for at least one year from the date of the applicable fund's current prospectus (unless otherwise noted in the applicable prospectus) or until such time as the fund's Board of Directors acts to discontinue all or a portion of such waivers and/or reimbursements. Absent such waivers and/or reimbursements, returns would have been lower. Expenses are based on the fund's current prospectus.

2 The Russell 1000® Value Index is an index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.

3 Characteristics Definitions:
SEC yield is a measure of the income generated by the portfolio's underlying asset over the trailing 30 days, relative to the asset base of the portfolio itself. The SEC 30-day yield -Subsidized (Sub.) reflects current fee waivers in effect. Absent such fee waivers, the yield would have been lower. The SEC 30-Day yield- Unsubsidized (Unsub.) does not reflect the fee waivers currently in effect.

Weighted Average Market Capitalization is an average of the market capitalization of stocks comprising a portfolio or index, adjusted by each stock’s weight in the portfolio or index.

Price-Earnings (P/E) is the price of a stock divided by its earnings per share for the past 12 months. Sometimes called the multiple, P/E gives investors an idea of how much they are paying for a company’s earning power. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Price-To-Book Ratio (Price/Book) compares a stock’s market value to the book value per share of total assets less total liabilities. This number is used to judge whether a stock is undervalued or overvalued.

RISK CONSIDERATIONS: Diversification does not eliminate risk of loss. There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that the market values of securities owned by the fund will decline. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this fund. Please be aware that this fund may be subject to certain additional risks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Information Technology Sector Risk. To the extent the Fund invests a substantial portion of its assets in the information technology sector, the value of Fund shares may be particularly impacted by events that adversely affect the information technology sector, such as rapid changes in technology product cycles, product obsolescence, government regulation, and competition, and may fluctuate more than that of a fund that does not invest significantly in companies in the technology sector. Options Risk. Options may be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

 

Writing call options involves the risk that the Fund may be required to sell the underlying security or instrument (or settle in cash an amount of equal value) at a disadvantageous price or below the market price of such underlying security or instrument, at the time the option is exercised. Underlying Index. The Fund invests in options that derive their value from the Underlying Index, and therefore the Fund’s investment performance largely depends on the investment performance of the Underlying Index in addition to the performance of its equity portfolio, which will fluctuate. Correlation. As an option approaches its expiration date, its value typically will increasingly move with the value of the Underlying Index. However, the value of the options may vary prior to the expiration date because of related factors other than the value of the Underlying Index. Factors that may influence the value of the options include interest rate changes and implied volatility levels of the Underlying Index, among others. Transactions in some types of derivatives, including FLEX Options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house, such as the OCC, rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members. In cleared derivatives positions, the Fund will make payments to and receive payments from a clearing house through their accounts at clearing members. The Fund is also subject to the risk that a limited number of clearing members are willing to transact on the Fund’s behalf, which heightens the risks associated with a clearing member’s default. If a clearing member defaults, the Fund could lose some or all of the benefits of a transaction entered into by the Fund with the clearing member. The loss of a clearing member for the Fund to transact with could result in increased transaction costs and other operational issues that could impede the Fund’s ability to implement its investment strategy. If the Fund cannot find a clearing member to transact with on the Fund’s behalf, the Fund may be unable to effectively implement its investment strategy. Counterparty. Counterparty risk generally refers to the risk that a counterparty on a derivatives transaction may not be willing or able to perform its obligations under the derivatives contract, and the related risks of having concentrated exposure to such a counterparty. If an OCC clearing member or OCC becomes insolvent, the Fund may have its positions closed or experience delays or difficulties in closing or exercising its FLEX Options positions and the Fund could suffer significant losses. Derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Illiquid Securities. The fund may make investments in securities that are or become illiquid or less liquid and which may be more difficult to sell and value (liquidity risk). Tax Risk. The Fund intends to limit the overlap between its stock holdings and the stock holdings of the underlying ETF or underlying index of options to less than 70% on an ongoing basis in an effort to avoid being subject to the “straddle rules” under federal income tax law. The Fund expects that the option contracts it writes will not be considered straddles. Under certain circumstances, however, the Fund may enter into options transactions or certain other investments that may constitute positions in a straddle. The straddle rules may affect the character of gains (or losses) realized by the Fund. Authorized Participant Concentration Risk. The Fund has a limited number of intermediaries that act as authorized participants and none of these authorized participants is or will be obligated to engage in creation or redemption transactions. As a result, shares may trade at a discount to net asset value (“NAV”) and possibly face trading halts and/or delisting. Trading Risk. The market prices of shares of the Fund are expected to fluctuate, in some cases materially, in response to changes in the Fund's NAV, the intra-day value of holdings, and supply and demand for Shares. The Adviser and Subadviser cannot predict whether shares will trade above, below or at their NAV. Buying or selling shares in the secondary market may require paying brokerage commissions or other charges imposed by brokers as determined by that broker. Active Management Risk. In pursuing the Fund’s investment objective, the adviser and/or subadviser has considerable leeway in deciding which investments to buy, hold or sell on a day-to-day basis, and which trading strategies to use. For example, the adviser and/or subadviser, in its discretion, may determine to use some permitted trading strategies while not using others. The success or failure of such decisions will affect the Fund’s performance. New Fund Risk. A new fund's performance may not represent how the fund is expected to or may perform in the long term. In addition, there is a limited operating history for investors to evaluate and the fund may not attract sufficient assets to achieve investment and trading efficiencies.

The index is unmanaged and does not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor.

This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

Before investing in any Parametric ETF, prospective investors should consider carefully the investment objective(s), risks, and charges and expenses. The current prospectus contains this and other information. To obtain a prospectus or summary prospectus, download a copy. Prospective investors should read the prospectus carefully before investing.

NOT FDIC INSURED | OFFER NO BANK GUARANTEE | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT A DEPOSIT

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00pm net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

©2023 Eaton Vance Distributors, Inc. Morgan Stanley Investment Management Inc. is the adviser and Parametric Portfolio Associates LLC is the subadviser to the Parametric ETFs. Parametric ETFs are distributed by Foreside Fund Services, LLC.