ETF targets a consistent 5% distribution yield, joins HNDL in suite of innovative target distribution solutions
Strategy Shares, an innovative family of exchange traded funds (ETFs) providing all types of investors with unique and compelling portfolio solutions, is today announcing the launch of the Strategy Shares Nasdaq 5HANDL Index ETF (NASDAQ: FIVR). This new fund joins the Strategy Shares Nasdaq 7HANDL Index ETF (NASDAQ: HNDL), which crossed the $1 billion asset mark in 2021, in the firm’s unique lineup of target distribution strategies.
FIVR is designed to seek investment results that correlate generally, before fees and expenses, to the price and yield performance of the Nasdaq 5HANDL™ Index. The index represents an allocation to a balanced portfolio of U.S. equities, fixed income securities, and alternative investments with the goal, but not the guarantee, of achieving a total return sufficient, over time and after expenses, to support a 5 percent annual distribution rate.1
“We are very excited to be expanding our target distribution ETF suite,” said David Miller, Portfolio Manager for FIVR and HNDL. “FIVR’s approach provides those investors and advisors who may be interested in a lower volatility approach with a compelling offering to either pair with or use independently from our successful 7HANDL ETF.”
The index consists of ETFs that are split into two equally weighted categories, a Core Portfolio and a Dorsey Wright Explore Portfolio. The Core Portfolio consists of a 70% allocation to U.S. aggregate fixed income ETFs and a 30% allocation to U.S. large cap equity ETFs. The Dorsey Wright Explore Portfolio consists of an allocation to ETFs in various U.S. asset categories that have historically provided high levels of income, using a tactical asset allocation methodology in consultation with Nasdaq Dorsey Wright Investment Research and Analysis that seeks to incorporate momentum, yield, and risk.
“A five percent target distribution rate aligns with what many financial advisors are now suggesting for retired clients looking to live off their respective portfolios,” added Jerry Szilagyi, President, of Rational Advisors, Inc., the advisor to Strategy Shares ETFs. “This is a powerful new tool for investors seeking target distributions with lower anticipated volatility than similar products, and we look forward to discussing FIVR and HNDL with the advisor and investor communities.”
For more information on Strategy Shares ETFs’ unique suite of investment products, please visit: www.StrategySharesETFs.com.
About Strategy Shares
Strategy Shares is a family of exchange traded funds (ETFs) focused on bringing unique strategies to the ETF marketplace. Currently, Strategy Shares offers three ETFs: the Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL), the Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO) and the Strategy Shares Gold-Hedged Bond ETF (GLDB). For more information on Strategy Shares and its fund offerings, please visit: www.StrategySharesETFs.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Strategy Shares ETFs. This and other important information about the Funds are contained in the full or summary prospectus, which can be obtained by calling (855) HSS-ETFS (855-477-3837) or at www.StrategySharesETFs.com.
Investment in a fund of funds is subject to the risks and expenses of the underlying funds. Diversification and asset allocation may not protect against market risk or loss of principal. The Fund’s exposure to equity ETFs subjects it to market risk. Investments in bonds are subject to credit risk, call risk and interest rate risk so that as interest rates rise the value of bond prices will decline. Credit risk refers to the possibility that the issuer of the bond will not be able to repay the principal and make interest payments.
The Index’s exposure to the Explore Component consists of ETFs that invest in a number of categories some of which are subject to higher risks such as derivatives, (options) which may amplify risks and create volatility; high yield debt (also known as junk bonds) without limit to maturity, duration or credit quality; Master Limited Partnerships (MLPs – affected by issues of the general partner); Real Estate Investment Trusts and Mortgage-Backed Securities (REITS and MBS - affected by economic factors related to the real estate industry and credit risks). While the Fund may hold securities of companies that have historically paid a dividend, those companies may reduce or discontinue their dividends, Past dividend payments are not a guarantee of future dividend payments.
The Fund is passively-managed meaning it seeks to track the performance of its index by holding all, or a sampling, of the ETFs and securities of that index and may not be able to exactly replicate the index’s performance. Tracking error also may result because the Fund incurs fees and expenses, while the Index does not.
Investment in a fund of funds is subject to the risks and expenses of the underlying funds. Diversification and asset allocation may not protect against market risk or loss of principal. Certain sectors and markets perform exceptionally well based on current market conditions and the Nasdaq 7HANDL ETF can benefit from that performance. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such results will be repeated. The use of leverage can amplify the effects of market volatility on the fund’s share price and make the fund’s returns more volatile. The use of leverage may cause the fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations. The use of leverage may also cause the fund to have higher expenses than those of funds that do not use such techniques.
HANDLS™ and HANDL™ are trademarks of Bryant Avenue Ventures LLC and have been licensed for use by Rational Advisors, Inc. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares.
The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.
1 All or a portion of which may include a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit. A return of capital will reduce the tax basis of shares and potentially increase the taxable gain, if any, upon disposition of shares.
MacMillan Sullivan Communications