RIA Ideas - Time to revisit a hedge?

Vinay Tolia |
Categories
Weekly Market Commentary

 

Worst-of Growth Note — Gold & Silver

Is protection worth revisiting while it’s on sale?

Nearly everything sits at or near record highs — the S&P 500 is just 1.4% below its peak, the Nasdaq-100 1.2%, small caps right at theirs (as of 6/30/2026). The one exception: gold (-7.5% YTD) and silver (-18.7% YTD) — the assets most portfolios hold as a hedge.

So the one thing people own for protection is also the only thing that’s pulled back — gold sits 25.7% off its 1-year high, silver 49.4% (as of 6/30/2026). Adding that hedge now — with a 20% buffer and 175% participation, both measured on whichever of gold or silver performs worse — may be one way to diversify a portfolio priced for perfection while the protection itself is marked down.

Everything’s at highs — except the hedge

2026 YTD return and drawdown from 1-year high: equities near highs, gold and silver the only pullbacks

Data sourced from Yahoo Finance as of 6/30/2026 · marinelayeradvisors.com/insights

One Way To Own the Hedge With a Cushion

3-Year GLD/SLV Growth Note

175% Upside Participation

Worst-of GLD & SLV · 20% buffer · 3-year · upside & buffer measured on the worse performer

Indicative levels only.

Here’s how it pays out at maturity — the buffer and the 175% both key off whichever of gold or silver does worse:

Payoff at maturity: 175% of the gain on the worse of GLD/SLV, first 20% of a decline buffered, losses beyond 20%

Curious whether a hedge belongs in the conversation at all-time highs?

This material is for informational purposes only and does not constitute a recommendation. Data sourced from public sources (Yahoo Finance, as of 6/30/2026) and has not been independently verified. Past performance is not indicative of future results. Structured notes involve risks including potential loss of principal. Growth notes with a buffer provide limited downside protection only — losses beyond the 20% buffer are borne by the investor, and a worst-of structure references the lower-performing of the two underliers. Terms shown are indicative, subject to issuer credit risk, market conditions, and availability at time of execution.