ETF issuer Strategy Shares has launched the Strategy Shares Nasdaq 5HANDL Index ETF (NASDAQ: FIVR).
The firm writes that this new fund joins the Strategy Shares Nasdaq 7HANDL Index ETF (NASDAQ: HNDL), which crossed the USD1 billion asset mark in 2021.
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 US 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 per cent annual distribution rate.
“We are very excited to be expanding our target distribution ETF suite,” says 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 per cent allocation to US aggregate fixed income ETFs and a 30 per cent allocation to US large cap equity ETFs. The firm writes that the Dorsey Wright Explore Portfolio consists of an allocation to ETFs in various US 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 5 per cent target distribution rate aligns with what many financial advisors are now suggesting for retired clients looking to live off their respective portfolios,” adds 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 adviser and investor communities.”
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