The Nasdaq 7HANDL™ Index ETF 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 Nasdaq 7HANDL ETF has adopted a policy to pay monthly distributions on Fund shares at a target rate that represents an annualized payout of approximately 7.0% on the Fund’s per-share net asset value on the date of a distribution’s declaration. 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 any time.
In order to allow shareholders of the Fund to realize a predictable, but not assured, level of cash flow, the Fund has adopted a policy which may be modified at any time to pay monthly distributions on Fund shares at a target rate that represents an annualized payout of approximately 7.0% on the Fund’s per-share net asset value on the date of a distribution’s declaration.
|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|
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, overtime 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 fund’s net asset value and returns will vary and an investor can lose money in an investment in the fund.
The index consists of strategies that are split into two equally-weighted categories, a Core Portfolio and a Dorsey Wright Explore Portfolio, creating a well-diversified, multi-asset portfolio.1
Embeds a long-term focus by providing broad exposure to the U.S. fixed-income and equity markets. Allocations are fixed at 70% U.S. aggregate fixed-income and 30% US large cap equity.
Embeds a tactical allocation to asset categories that have historically provided high levels of current income. Weighed on a monthly basis using a proprietary Dorsey Wright asset allocation methodology.
Index of 19 strategies representing an estimated 20,000 individual underlying securities
As of 4/11/2019
HANDLS™ and HANDL™ are trademarks of Bryant Avenue Ventures LLC and have been licensed for use by Rational Advisors, Inc.
1The Dorsey Wright Explore Portfolio uses a tactical asset allocation methodology developed in consultation with Nasdaq Dorsey Wright Investment Research & Analysis that seeks to incorporate momentum, yield and risk.
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.
Shares of this ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
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. 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.