Innovative ETF targets a consistent 7% distribution yield, making it a compelling tool for income-hungry investors dealing with a low-rate world
Strategy Shares ETFs crossed the $1 billion mark across its fund lineup earlier this year, powered by HNDL, its momentum-focused ETF ROMO, and its latest offering, GLDB, which combines exposure to investment grade corporate bonds with a gold hedge
Strategy Shares, an innovative family of exchange traded funds (ETFs) providing all types of investors with unique and compelling portfolio solutions, is today announcing that its Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL) has surpassed $1 billion in assets under management.
HNDL is a first-of-its-kind target distribution ETF designed to seek investment results that correlate generally, before fees and expenses, to the price and yield performance of the Nasdaq 7HANDL™ Index. The index includes a 50% allocation to fixed income and equity ETFs (the “Core Portfolio”) and a 50% allocation to a “Dorsey Wright Explore Portfolio,” a tactical allocation with U.S. fixed-income, U.S. blend, U.S. equity and U.S. alternative assets, or categories that have historically provided high levels of income.
Since its launch in 2018, HNDL has historically met its objective of generating investment results that track the 7% target distribution yield of the Nasdaq 7HANDL™ Index.
“Hitting the $1 billion mark is a significant milestone for any ETF, and we are particularly pleased with just how well HNDL has been resonating with investors and advisors looking for tangible solutions to the challenge of identifying and adding yield to a portfolio,” said David Miller, Portfolio Manager for HNDL. “With rates likely to stay near zero for the foreseeable future, the approach underpinning HNDL can solve for a key need for yield-hungry investors.”
HNDL has grown its assets by more than 400% in 2021 alone, and is joined in the Strategy Shares ETFs family by two other funds:
- Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO) seeks to provide momentum-based exposure to global equity regions while simultaneously avoiding significant and prolonged drawdowns. Unlike many tactical strategies, which implement a “light switch” approach, ROMO implements a distinct “dimmer switch” approach.
- Strategy Shares Gold-Hedged Bond ETF (GLDB), the firm’s newest fund, combines an investment grade bond portfolio with a gold hedge overlay in one strategy based on the proposition that an investment in gold can potentially provide a hedge against inflation for a bond investment.
“We’ve been very pleased by how well our entire lineup of innovative ETFs has been resonating with the marketplace, and we look forward to continuing to speak with advisors and investors about the ways in which these strategies can help them solve some of their most pressing portfolio construction challenges,” added Miller.
For more information on HNDL, ROMO, GLDB and Strategy Shares ETFs, 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. The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.
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.
There are risks involved with investing, including possible loss of principal. Investment in a fund of funds is subject to the risks and expenses of the underlying funds. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
The Fund will concentrate its investments in securities of a particular industry and/or geographic region to the extent the Index does. This may cause the Fund’s net asset value or market price to fluctuate more than that of the Fund that does not concentrate in a particular industry or geographic region.
Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may not be backed by the full faith and credit of the U.S. government, which could affect the Fund’s ability to recover should they default. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
Investments involve risk including possible loss of principal. The Fund is classified as “non-diversified” to the extent that the Index concentrates in an industry so that a relative high percentage of the Fund’s assets may be invested in a limited number of issuers. The fund invests in the underlying constituents of the index that consists of a Bond and Gold component. The Fund may also invest in more aggressive investments such as foreign and emerging market securities (which may expose the fund to currency and exchange rate fluctuations), total return swaps and futures (which may involve leverage that could increase the volatility of the Fund and reduce its returns) and derivatives which may amplify volatility. Investing in bonds are subject to credit, prepayment and interest rate risk. As interest rates rise causes a decline in the value of fixed income securities owned by the fund.
The price of gold fluctuates over time. There is no guarantee that an investment in gold will increase or even maintain its value. Short-term, the price of gold has fluctuated widely. If gold markets continue to be characterized by wide fluctuations, the price may change in an unpredictable manner. Long-term, gold markets have historically experienced extended periods of flat or declining prices. There is no guarantee that the price of gold will move as expected relative to the U.S. dollar, nor is there any guarantee that gold will act as an effective inflation hedge. The Fund is a new fund with no history of operations as an ETF for investors to evaluate.
Solactive AG (“Solactive”) is the licensor of Solactive Gold-Backed Bond Index (the “Index”). The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Notwithstanding Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication with respect to the Index and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.
MacMillan Sullivan Communications