Introducing Dan Cupcovic, the Portfolio Manager behind BlackSwan's strategy. Discover how this partner at Cerity Partners, one of the largest RIAs in the country, is revolutionizing investments with SWAN, ISWN, and QSWN ETFs. Whether you're looking for a short-term risk-off play or a smart capital allocation for the long haul, this is the podcast you don't want to miss. To learn more about Dan and BlackSwan, visit https://amplifyetfs.com/swan/
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Dan Cupkovic covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
And in Swan's case, it buys it on the SAP 500 or SPY non-reline ETF ticker. So, what, as opposed to having one launch of 10 percent options, we break that up in the two separate call transactions. So, there's a 5 percent allocation to June of any particular year and a 5 percent allocation to December. And the strategy works like the clock, on the option component, where when June comes up, like we just had the June rebalance, we sell that June of the current year date and then we roll it to the June of the following year date.
Yeah, so I mean, the way that I see sworn is most advantageous is in very, very good positive environments, meaning if the markets up 50 percent, those call options are going to sing beautifully in the up a tremendous amount. And you have to remember the more the market goes up, the larger that proportion to portfolio becomes, the call option, until rebalance. So, theoretically, the more the market goes up, the more that call option can drive value for the portfolio.
Market Context and Positioning
I'm Brad Roth, Chief Investment Officer of Thor Financial Technologies, and portfolio manager of THLV, the Thor Low Volatility ETF. Behind the Ticker, uncovers the inner workings of the ETF industry. We will interview portfolio managers and ETF service providers to dive deep into their work lives and their businesses. We will learn the inner workings of their strategies and what drives them as they continue to grow their company. Many of these individuals are entrepreneurs, and will have unique and compelling insights to share as much goes on behind the Ticker.
Today we have Dan Cupkevic. He is the portfolio manager for SWAN, SWAN, and also some Ancillary Products, Icewan, and Q-Swan. He is also a partner at Serity Partners, who is a massive registered investment advisory firm. And I think you're going to learn a lot today from Dan. We talk about SWAN, which is a very interesting product. We also talk a little bit towards the end about markets and what's going on, at least your date and what we think is going to happen here in the future.
But I agree with you. So what do you think is the best way someone should probably be positioning themselves right now as we're looking at the second half of the year? Yeah, I mean, I think the approach right now is to be to create a portfolio that is very well the first five, even more than the standard sense where you don't want necessarily create a portfolio that is designed to do well in one environment. I think you want to create a portfolio that's a very robust that can still get a solid return in many type of the market.
Notable Insights
"Where swans not going to do gray is in that sort of positive five to negative five environment, with the markets up a little bit or down a little bit, because at the end of the day, there's an opportunity cost to buy those call options."
"The difference is with swan, it's S&P 500 equity exposure, with Q swan, which is QSWN, it's NASDAQ 100 equity exposure."
Key Takeaways
- The conversation explores important themes in fixed income relevant to today's advisor landscape.
- The conversation explores important themes in income investing relevant to today's advisor landscape.
- The conversation explores important themes in market outlook relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Dan Cupkovic highlights important considerations around fixed income. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of fixed income and income investing discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Dan Cupkovic, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.