In a recent episode of “Behind the Ticker,” Howard Chan, founder of Kurv Investment Management, discussed his unique approach to ETFs and how his firm leverages institutional-grade strategies to benefit all investors. Chan, who began his career as an engineer, transitioned to finance after stints at Goldman Sachs and PIMCO, where he led the ETF business in Europe. After returning to the U.S., Chan was inspired by discussions with advisors to launch Kurv Investment Management with a mission to make tax-efficient, institutional-grade strategies accessible to a broader range of investors.
Kurv’s focus on tax efficiency and institutional-grade strategies is central to its product design. Chan explains that while many institutional strategies are highly effective, they are often tax-inefficient for retail investors. Kurv’s goal is to bring these sophisticated strategies to all investors while minimizing tax implications. One way the firm achieves this is by incorporating techniques such as volatility risk premia and other derivatives, previously only available to the largest institutions, into their ETFs.
A key highlight of the conversation is Kurv’s innovative technology-focused ETF, the KQQQ ETF (also referred to as “KQs”). This fund targets strategic exposure to the largest technology companies, aiming to deliver asymmetric upside while mitigating downside risk through dynamic covered call strategies. Chan explains that KQQQ is designed for investors who seek growth in technology but are also concerned about the sector’s inherent volatility. The ETF combines momentum signals with a dynamic covered call strategy to capture upside during growth phases and generate income during periods of market correction or sideways trading.
Chan further discusses how KQQQ leverages smart security selection by focusing on 15 to 20 of the most dominant technology names, including companies that have fundamentally changed their industries through technological innovation. The fund dynamically overweights stocks showing positive momentum and deploys covered call strategies on those exhibiting negative momentum, creating a balanced approach that seeks to maximize returns while protecting against downside risk. The strategy offers a way for advisors and investors to maintain tech exposure in their portfolios with added income and downside mitigation.