The 7% Target Distribution ETF
TICKER: HNDL

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.

Targeted 7% Distribution Rate Paid Monthly

The Index seeks to offer the potential for targeted monthly distributions while maintaining a stable net asset value over time, all or a portion of which includes a return of capital if the Fund’s net return is less than the targeted distribution rate.

Well-Diversified, Multi-Asset Portfolio

Strategy Shares Nasdaq 7HANDL Index ETF (Nasdaq: HNDL) consists of 19 strategies representing broad exposure to an estimated 20,000 individual underlying securities, including U.S. Fixed Income, U.S. Equity, U.S. Alternative, and U.S. Blend (as of 12/31/2018).

Powered by Nasdaq Dorsey Wright

The index consists of allocations that are split into two equally-weighted categories, a Core Portfolio and a Dorsey Wright Explore Portfolio.

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.

7HANDL Onepager

methodology

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:
  • 70% Aggregate US Bond Market
  • 30% Large Cap US Equities
  • Growth & Income
  • MLPs
  • Preferreds
  • REITs
  • Covered Call
  • Dividend Equit
  • Utilities
  • Active Fixed Income
  • High-Yield Bonds
  • IG Corp Bonds
  • MBS
  • Build America Bonds
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.

What Makes 7Handl Different?

Automatic Distribution Adjustment

Distribution declarations are made on the ninth trading day of the month and set to 1/12th of a 7% annual rate of the prior night’s closing NAV. While the fund’s NAV will change from month-to-month based on market movements, the distribution is adjusted each month to reflect such movement (all or a portion of which includes a return of capital during unfavorable environments to maintain a distribution for your clients).

Balanced Portfolio Advantage

Academic research suggests that diversification can help investors reduce volatility and potentially increase risk-adjusted returns. We believe our Fund is well diversified, which may help reduce the risk of being over concentrated in a limited number of securities. By incorporating these asset categories into a well-diversified portfolio, investors may potentially reduce the risk associated with concentrated positions in volatile asset categories.

Highlights

CORE PORTFOLIO & DORSEY WRIGHT EXPLORE PORTFOLIO

The index consists of strategies that are split into two equally-weighted categories, a Core Portfolio and a Dorsey Wright Explore Portfolio.

7% DISTRIBUTION RATE PAID MONTHLY

7% DISTRIBUTION RATE PAID MONTHLY

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.

Index Methodology

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

CORE PORTFOLIO

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.

Long-Term Focus

Allocated to strategies providing broad exposure to U.S. aggregate fixed-income and U.S. large capitalization equity.

Rebalanced Monthly

DORSEY WRIGHT EXPLORE PORTFOLIO1

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.

Tactical Allocation

Allocated to one asset class in each of 12 categories that have historically provided high levels of income.

Reweighted Monthly

Index of 19 strategies representing an estimated 20,000 individual underlying securities

As of 4/11/2019

  • US Fixed Income
  • US Equity
  • US Alternative
  • US Blend

Disclosures

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.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search