“Volatility controlled” risky assets

You want to invest into high-risk/high-return assets, but with reduced risk.

There are a couple of ways you could potentially achieve this:

  • Some of these assets exhibit high auto-correlation during certain periods, aka they "trend". That means when they start to trend “down”, you’d want to allocate less to them. Similarly to what Tactical Asset Allocation strategies are doing.
  • Tactical Asset Allocation
  • You can hedge your exposure by buying out-of-money put options, so your downside is limited. Similarly to what Tail risk funds are doing.
  • Tail risk hedge

There's nothing conceptually new here - but the types of assets are different - while Tail Risk hedging and TAA is concerned with S&P 500 and alike, you may want bitcoin or tech stock exposure as well.


Simplify Nasdaq 100 PLUS Downside Convexity ETF - risk-managed tech stock exposure

SWAN ETF - S&P 500 exposure with limited downside