Dividend income, with downside protection.
Dividend-focused ETFs for income, with an automated hedge aiming to reduce the downside.
How it works
Dividend exposure + risk-aware hedge. Two layers.
Fully invested
Full dividend exposure. Income accrues. No hedge needed.
Hedge activated
Dividend holdings untouched. Hedge aims to reduce downside exposure. Income still flows.
Dividend-focused core
High-dividend ETFs selected for income.
AI risk detection
Multiple models work to detect elevated risk.
Income keeps flowing
Dividend holdings stay invested through hedged periods.
Fully automated
When conditions normalize, the hedge is removed automatically.
Why not just hold a dividend ETF?
Dividends don't protect you from drawdowns.
Dividend stocks still crash
High-dividend ETFs dropped 20%+ in 2022. The dividend yield didn't offset the capital loss.
Recovery takes years
Even with dividends reinvested, recovering from a deep drawdown takes time and delays compounding.
No built-in risk management
A dividend ETF holds static exposure. It doesn't reduce risk when conditions deteriorate.
References to dividend ETF drawdowns in 2022 are based on publicly available performance data for broad high-dividend ETF indices. Actual drawdowns varied by specific ETF and time period. Past performance does not guarantee future results.
Dividend payments are not guaranteed by issuers and may be reduced, suspended, or eliminated at any time. The strategy's focus on dividend-paying securities does not guarantee income and does not protect against loss of principal.
The hedge is designed to reduce, not eliminate, downside exposure during periods of elevated risk. Hedging uses margin and may increase certain risks. Not all periods of market decline will be identified in advance by the AI risk models.
faq
Common questions
How is this different from simply buying and holding high-income ETFs?
Traditional buy-and-hold approaches to income investing maintain constant market exposure through all market cycles. Risk-Aware High-Dividend Yield builds on a dividend-focused approach by incorporating a rules-based hedge designed to manage drawdowns during periods of elevated risk.
Will hedging cap my upside?
Our Risk-Aware strategies are designed to remain invested for long-term growth while selectively applying hedges during periods of elevated risk. Most of the time, portfolios maintain standard market exposure, allowing participation in market advances.
Hedging is applied through predefined, rules-based criteria as part of a broader risk-aware approach. While no strategy can eliminate risk or guarantee outcomes, the goal is to manage downside exposure without turning the portfolio into a conservative or permanently hedged allocation.
Is this just another ETF or mutual fund?
No. alphaAI Capital strategies are implemented as managed portfolios, not packaged funds. Rather than buying a single ETF or mutual fund, your portfolio is managed using a rules-based approach that adjusts exposure over time within predefined parameters.
Income investing, with protection built in.
Dividend-focused exposure. AI-driven risk management.