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 Index seeks to represent an allocation to a balanced portfolio of low-cost ETFs that provide exposure to U.S. equities, bonds and alternative investments and employs leverage in an amount equal to 23% of the total portfolio. To achieve this leverage, the NASDAQ 7HANDL ETF holds a total return swap on an unleveraged version of the Index, the NASDAQ 7HANDL™ Base 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.
The Fund’s investment objective is to seek to provide investment returns that correspond, before fees and expenses, to the performance of the Newfound/ReSolve Robust Equity Momentum Index.