Howard Capital Management Launches HCM Hedged Equity ETF
New HAWG ETF combines large-cap equity exposure with an options hedge and HCM’s proprietary HCM-BuyLine model for risk-managed growth.
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Rhea-AI Summary
Howard Capital Management (HAWG) has launched the HCM Hedged Equity ETF on NYSE Arca, an actively managed fund seeking long-term capital appreciation while managing downside risk.
Launched on August 13, 2026, the ETF invests at least 80% of net assets in large-cap equities linked to the S&P 500 (via the Solactive US Large Cap Index) and the Nasdaq-100 (via the Solactive United States Technology 100 Index). Around 80% of equity exposure is managed with a laddered put spread collar options overlay, while the remaining portion is tactically allocated using HCM’s proprietary quantitative HCM-BuyLine® model. Howard Capital Management reports $8.9 billion in assets under management as of May 31, 2026.
News Explained
HAWG has no operating history, uses leverage beyond net assets, and carries disclosed options and secondary-market liquidity risks.
The HCM Hedged Equity ETF (HAWG), launched on August 13, is newly formed with no operating history and uses leverage to obtain investment exposure above its net assets.
Its disclosed put spread collar is an options overlay, meaning options are layered over the underlying portfolio without selling those assets; the stated leverage can magnify both gains and losses.
The shares trade on secondary markets, but the release says they may not readily trade in all market conditions and may trade at significant discounts during market stress.
The prospectus, summary prospectus and statement of additional information are the named documents for the fund's investment objectives, risks, charges and expenses.
Details
News Market Reaction – HAWG
On Sep 22, the day this news came out, HAWG closed 0.03% above the previous close.
Data tracked by StockTitan Argus for the Sep 22 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Actively Managed ETF Built Around Broad Large-Cap Equity Exposure, a Systematic Options Overlay, and its Proprietary HCM-BuyLine® Model
"Investors have long asked us for a way to get equity exposure without giving up the discipline we bring to managing risk," said Vance Howard, CEO and Portfolio Manager, Howard Capital Management. "The HCM Hedged Equity ETF takes broad large-cap equity exposure, a systematic hedge, and our proprietary HCM-BuyLine® model and puts all three into one transparent ETF, helps to give investors a disciplined way to pursue growth while seeking to reduce getting whipsawed by shifting market cycles."
Launched on August 13, 2026, the Fund's strategy is built on three pillars:
- Broad Equity Exposure: The Fund invests at least
80% of its net assets in large-cap equity securities represented in the S&P 500® Index (replicated through the Solactive US Large Cap Index) and the Nasdaq-100 Index® (replicated through the Solactive United States Technology 100 Index). - Systematic Options Overlay: Approximately
80% of the Fund's equity exposure is managed using a laddered put spread collar options strategy designed to help manage downside risk while maintaining market exposure. - HCM-BuyLine® Model: The remaining portion of the portfolio is actively managed using HCM-BuyLine®, the firm's proprietary quantitative investment model, which evaluates market trends to guide portfolio positioning.
"Our quantitative trend indicator, the HCM-BuyLine®, takes emotion out of the equation. It's been the backbone of how we manage investments for more than two decades, and now we're bringing that same discipline alongside a systematic hedge into an ETF for investors," said Mr. Howard. "The three pillars at the cornerstone of this ETF follow the same philosophy we've run for over two decades – broad exposure, a real hedge, and a model that tells us when to move."
More information about the HCM Hedged Equity ETF is available at https://howardcmfunds.com/fund/hcm-hedged-equity/.
To learn more about HCM-BuyLine®, please visit https://howardcm.com/hcm-buyline/.
About Howard Capital Management
Founded in 1999, Howard Capital Management, Inc. (HCM) is an SEC-registered investment advisory firm managing
Media Contact
JConnelly for Howard Capital Management
hcm@jconnelly.com
Investors should carefully consider the investment objectives, risks, charges, and expenses of ETFs. This and other important information about the HCM Hedged Equity ETF is contained in the prospectus, summary prospectus and SAI which can be obtained at www.howardcmetfs.com, or by calling 770-642-4902. The prospectus should be read carefully before investing.
Important Risks Information
HAWG is newly formed and has no operating history. Investments in ETFs involve risk, including possible loss of principal. There is no assurance that HAWG will achieve its investment objectives. HCM cannot guarantee success of any investments. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be equal to past performance level, equal any corresponding indicated historical performance level(s), be suitable for any particulr portfolio or individual situation, or be profitable for a client's portfolio. Past performance does not guarantee future results.
No assurance can be given that the Fund will be successful under all or any market conditions. The Fund may gain exposure to options. The Fund's exposure to derivatives, such as options, involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) the risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. Such prices are influenced by numerous factors that affect the markets, including, but not limited to: changing supply and demand relationships; government programs and policies; national and international political and economic events, changes in interest rates, inflation and deflation and changes in supply and demand relationships. Trading derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities
The Fund utilizes leverage to obtain investment exposure in excess of its net assets, and while the use of leverage may magnify potential gains in favorable markets, it will also magnify potential losses in adverse market conditionsWhile the shares of ETFs are tradeable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns.
The HCM-BuyLine® is a tactical proprietary indicator used to assist in determining when and how much to invest in equities. The HCM-BuyLine® is not an automated trading program, and not all HCM-BuyLine® signals will result in securities transactions. When the HCM-BuyLine® indicates a bull market, the firm identifies the particular mutual funds, ETFs, or individual securities that it believes have the best return potential in the current market from the universe of assets available in each given program and increases investment exposure to them. When the HCM-BuyLine® indicates a bear market, the firm moves clients' investments to less risky alternatives, which may include cash, cash equivalents, and short term bonds. However, not every HCM-BuyLine® signal will result in full investment exposure to equities, nor will every HCM-BuyLine® sell signal result in full withdrawal from equity exposure. Not every HCM-BuyLine® buy or sell signal will result in a profitable trade. There will be times when following the indicator results in a loss. Each investment strategy we provide uses independent HCM-BuyLine® parameters, meaning the HCM-BuyLine® may produce different signals for different strategies at different times.
Except where agreed, we retain all discretionary decision-making with respect to securities transactions resulting from HCM-BuyLine® signals. As a result, transactions resulting from HCM-BuyLine® signals may not occur on the same day the signal(s) is produced. In addition, certain products, custodians and portfolios may have a delay in execution, which could cause actual transaction dates to differ from the dates when HCM-BuyLine® produced signals. In some instances, this could result in securities transactions (or lack of transactions) which result in less favorable overall performance than if the HCM-BuyLine® system had automatically initiated such transactions (or had refrained from such transactions). Use of HCM-BuyLine® does not guarantee outperformance of any strategies not employing such programs and does not insulate an investor from the risk of loss.
There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. The HCM-BuyLine® is not a stoploss order that automatically sells securities in the portfolio at a certain price. As a result, it will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders.
HCM Funds are distributed by Northern Lights Distributors, LLC, member FINRA/ SIPC. Northern Lights Distributors, LLC and Howard Capital Management, LLC are not affiliated.
Key Definitions:
- Options overlay is an investment strategy where you layer options contracts—such as puts or calls—on top of an existing stock or portfolio without selling the underlying assets.
- S&P 500 TR Index: The S&P 500 Index tracks the performance of top 500 large-cap U.S. companies.
- Solactive US Large Cap Index: is a financial benchmark designed to track the performance of the largest companies in the United States, representing the large-cap segment of the U.S. equity market.
- NASDAQ 100 TR Index: The NASDAQ-100 Index represents 100 of largest non-financial US and international securities listed on The NASDAQ Stock Market® (NASDAQ®) based on market capitalization.
- The Solactive US Technology 100 Index tracks 100 of the largest technology-related stocks on the Nasdaq, focusing on large-cap, high-growth companies.
- Put spread collar is an options strategy that modifies a traditional collar by adding a fourth position.
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SOURCE Howard Capital Management
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How does HAWG obtain its large-cap equity exposure?
The HCM Hedged Equity ETF invests at least 80% of its net assets in large-cap equity securities. These are represented by the S&P 500 Index, replicated through the Solactive US Large Cap Index, and the Nasdaq-100 Index®, replicated through the Solactive United States Technology 100 Index.
What is the options overlay strategy used by the HCM Hedged Equity ETF?
Approximately 80% of the ETF’s equity exposure is managed using a laddered put spread collar options strategy. This overlay is designed to help manage downside risk while maintaining market exposure, layering options contracts on top of the underlying equity positions without selling the core holdings.
What is the HCM-BuyLine® model and how is it used in the fund?
The HCM-BuyLine® is Howard Capital Management’s proprietary quantitative trend indicator used to guide portfolio positioning. For the HCM Hedged Equity ETF, the portion of the portfolio not in the options overlay is actively managed using HCM-BuyLine®, which evaluates market trends to help determine when and how much to invest in equities or move toward less risky alternatives in different market conditions.
What key risks are highlighted for investors considering HAWG?
The fund is newly formed and has no operating history, and there is no assurance it will achieve its investment objective. Investments in ETFs involve risk, including possible loss of principal. The ETF may use derivatives such as options, which introduce risks including counterparty default, mispricing or improper valuation, and imperfect correlation with underlying assets. The fund also utilizes leverage, which can magnify gains and losses. Shares may trade at discounts or premiums to net asset value and may not trade readily in all market conditions, and brokerage commissions and ETF expenses will reduce returns.
How large is Howard Capital Management’s overall business?
Howard Capital Management reports managing $8.9 billion in assets as of May 31, 2026, across separately managed portfolios, retirement tools, self-directed brokerage accounts, and proprietary mutual funds, using primarily defensive and tactical investment strategies.