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Animal Spirits Podcast

Talk Your Book: A Better 60/40 Portfolio

Mar 10, 2025
JD Gardner, CIO and Founder of Aptus Capital Advisors, shares his insights into innovative investment strategies, focusing on options-based active ETFs. He discusses the shift towards riskier portfolios and the use of stock options for hedging. Misconceptions about option-based strategies are addressed, highlighting the importance of understanding risks. Gardner also introduces the 'D-Risk' ETF and two distinct strategies, DRSK and ACIO, that seek to balance risk with potential returns, reflecting on the need for investor education in today's market.
36:30

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The importance of aligning investment strategies with investors' comfort levels is crucial for their long-term success and engagement.
  • Aptus Capital Advisors aims to enhance traditional portfolios by integrating active options strategies that improve risk-return profiles and mitigate downside risks.

Deep dives

Understanding Investor Behavior and Strategy Adoption

Investment strategies, regardless of their potential returns, must consider the ability of investors to stick with them. Many fund managers initially believe in the attractiveness of their models, but without investor confidence and understanding, these strategies often fail. The discussion highlights that even the best-picked stocks can lead to unenjoyable drawdowns, making it crucial for investors to feel comfortable enough to engage with these strategies from the outset. Ultimately, creating investment products that resonate with investors’ comfort levels is paramount for success.

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