Just because you or your clients are in or near retirement doesn’t mean the bills stop coming. You need regular targeted monthly cash distributions to help support your lifestyle.
The Nasdaq 7HANDL™ Index ETF (HNDL) may help meet your monthly cash distribution needs because it follows an index that aims to pay out monthly a 7% annual distribution rate, with the potential of long-term
gains. Depending on market conditions, all or a portion of a distribution may consist of a return of capital from the original investment, and the distribution rate may be modified at anytime.
Read on for six reasons why (HNDL) may be a suitable investment for our times.
The current low interest rate environment might make it hard for your investments to support a comfortable lifestyle.
Nasdaq 7HANDL™ Index ETF may help meet your cash distribution needs because it follows an index that aims to deliver a 7% annual distribution, showing up in the cash portion of your brokerage account monthly.
Depending on market conditions, all or a portion of a distribution may consist of a return of capital from the original investment, and the distribution rate may be modified at anytime.
HYPOTHETICAL DISTRIBUTION BASED ON $1 MILLION
|%||Estimated Monthly Amount|
Nasdaq 7HANDL™ Index ETF, powered by Nasdaq Dorsey Wright, works toward your goals by combining a sound, conservative core allocation of 70% fixed income and 30% large-cap U.S. equity ETFs with a dynamic portfolio of specialized ETFs. This second, tactical portfolio is a Dorsey Wright Explore Portfolio reconstructed every month, using a proprietary Dorsey Wright algorithm systematically designed to produce the best mix of income and appreciation potential in any given market environment.
|50% FIXED ALLOCATION CORE PORTFOLIO||50% DORSEY WRIGHT EXPLORE PORTFOLIO|
|Long-Term Perspective – Fixed Allocation||Tactical allocation, monthly reconstructed,
using a proprietary Dorsey Wright algorithm
|2 Categories:||12 Categories:|
|Rebalanced Monthly to 70/30||Rebalanced Monthly based on most recent 12-month data|
|Allocated to the three largest aggregate bond market ETFs, the three large-cap blend equity ETFs and the Nasdaq-100 Index ETF.||Allocated to the largest ETFs in each of the 12 categories as defined by the index provider.|
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 index will have risk characteristics similar to the broad US capital markets and will generally rise and fall with prevailing market conditions, with the goal, but not the guarantee, of achieving a total return sufficient, over time and after expenses, to support a seven percent (7.0%) annual distribution rate. Thus, since the ETF’s performance is correlated to the index, the funds’s net asset value and returns will vary and an investor can lose money in an investment in the fund.
Nasdaq 7HANDL™ Index ETF invests in the largest ETFs in each of 14 categories and each ETF within the index provides exposure to hundreds or thousands of securities. As a result, with even a modest investment, you are spreading your investment across more than 20,000 different stocks, bonds and other underlying securities.
As a result, your exposure to the ups and downs of any single security or sector is reduced and may be offset by other underlying holdings in (HNDL). This may reduce the overall risk in your investment
Prudent leverage can make your investments work harder for you and although it can increase your risk, it can similarly increase your return. It’s like when you bought your house – you likely put down only a portion of the purchase price and borrowed the rest. For a small percentage of the purchase price, you got exposure to 100% of the home’s appreciation in value, minus financing costs.
In a similar way, Nasdaq 7HANDL™ Index ETF uses approximately 23% leverage (essentially putting 77% down) to boost your exposure to income- and growth-producing sectors of the market. The added return potential from leverage is one of the reasons we can aim to make a 7% distribution without touching your original investment. However, depending on market conditions, all or a portion of a distribution may consist of a return of capital from the original investment, and the distribution rate may be modified at anytime.
The Nasdaq 7HANDL™ Index ETF* focuses on the largest ETFs in each category, in an effort to ensure that you’ll get to keep more of your investment returns. Our
embedded fund fees average approximately 23 basis points (as of June 30th, 2018), well below the industry average for sophisticated ETFs.
Nasdaq 7HANDL™ Index ETF employs an investment process that is 100% rules
driven and is based on analyses of decades of market data and performance. The
underlying index is managed by Nasdaq Dorsey Wright, a leading quantitative investment research and portfolio management firm with 30 years of experience and tens of billions of dollars tracking its indices.
|The Nasdaq 7HANDL Index ETF seeks investment results that correspond generally, before fees and expenses, to the price and yield performance of the Nasdaq 7HANDL™ Index.|
|Share Class Information|
|Portfolio Manager||Investment Advisor|
||Rational Advisors, Inc.|
|About Nasdaq Dorsey Wright|
|Nasdaq Dorsey Wright is a registered investment advisory firm based in Richmond, Virginia. Over the last thirty years, their research platform, SMA/UMA strategies, indexes, and team of analysts have created more informed, conversations for advisors, investment managers and their clients. Now a part of Nasdaq, they continue to help market participants build and protect their clients’ wealth. As a single company, they are one of the largest providers of Smart Beta indexes with $56.8 billion in assets under management (as of June 30th, 2018) tracking Nasdaq Smart Beta indexes.
Their longevity is built on trust, respect and unbiased, objective strategy. Their belief is that successful investing requires a clear and consistent strategy. They empower clients with information and tools that enable them to manage a clear strategy based on objective, unemotional data. Their clients dare to stand out from the rest – and can benefit from the differentiation that comes from having a clear and effective strategy based on time-tested principles.
If you depend on your investment portfolio to pay the bills, today’s low yield environment is challenging. Nasdaq 7HANDL™ Index ETF (HNDL) follows an index that seeks to provide a 7.0% annual distribution. Depending on market conditions, all or a portion of a distribution may consist of a return of capital from the original investment, and the investment rate may be modified at anytime.
It may help provide the income you need to support your lifestyle, along with broad diversification to help reduce risk and a proven rules-based investment strategy to maximize both income and appreciation potential. For more information about how this ETF could work in your portfolio, contact us at:
Strategy Shares, Inc.
36 North New York Avenue, Fl 3
Huntington, NY 11743
DISCLOSURES AND IMPORTANT INFORMATION
Investors should carefully consider the investment objectives, risks, charges and expenses of the Nasdaq 7HANDL ETF. This and other important information about the Fund is contained in the full or summary prospectus, which can be obtained by calling (855) HSS-ETFS (855-477-3837) or at www.StrategySharesETFs.com. Please read it carefully before investing.
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. 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.
HANDLS™ and HANDL™ are trademarks of Bryant Avenue Ventures LLC and have been licensed for use by Rational Advisors, Inc.
Nasdaq® is a registered trademark of Nasdaq, Inc.
ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. STRATEGY SHARES © 2018
Date of first use – 08/01/18