Strategy Shares unveils multi-asset target distribution ETF

Jan 18th, 2018 | By | Category: Alternatives / Multi-Asset

Strategy Shares, a New York-state based ETF provider, has launched the Strategy Shares Nasdaq 7HANDL Index ETF (HNDL US) on Nasdaq Exchange, tracking a first-of-its-kind strategy index that targets a 7.0% annual distribution rate, all or a portion of which may include a return of capital.

Strategy Shares unveils multi-asset target distribution ETF

The Strategy Shares Nasdaq 7HANDL Index ETF will pay investors a 7% annual payout, all or a portion of which may include a return of capital.

“Strategy Share’s mission is rooted in bringing alternative-focused ETFs to the market, and this latest fund addition renews this focus,” said Jerry Szilagyi, CEO of Strategy Shares.

“The Strategy Shares Nasdaq 7HANDL Index ETF seeks to offer a steady 7% distribution, and is the first fund of its kind representing a new category of indices.”

HNDL has adopted a policy to pay monthly distributions at a target rate that represents an annualized payout of approximately 7.0% on the fund’s per-share net asset value.

Indexing firm Bryant Avenue Ventures created the suite of HANDLS (High-Distribution AND Liquid Solutions) indices to help address the income needs of retirees in the drawdown phase of their investing lives.

The underlying Nasdaq 7HANDL Index was developed in partnership with Nasdaq and relative-strength specialists Dorsey Wright, and consists of a well-diversified, multi-asset portfolio of low-cost ETFs targeting US equities, bonds and alternatives. Modest leverage, of an amount equal to 23% of the total portfolio, may be employed.

These underlying ETFs 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 US aggregate fixed income ETFs and a 30% allocation to US large cap equity ETFs. The Dorsey Wright explore portfolio consists of a tactical allocation to ETFs in various US asset categories that have historically provided high levels of income, based on a proprietary methodology developed by Nasdaq Dorsey Wright Investment Research & Analysis.

“Financial innovation continues with our partnership on the Nasdaq HANDLs indices,” said Dave Gedeon, vice president and head of research & development at Nasdaq Global Indices. “The goal of this 7HANDL Index is to deliver consistent income that investors in all walks of life seek. We are thrilled to continue the evolution of income strategies and believe this will open new avenues in the creation of fixed-income alternatives.”

HNDL’s gross expense ratio is relatively pricey for an ETF, at 0.96% pa.

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