5% Target Distribution Strategy
A Distinct Nasdaq Dorsey Wright Approach for a Zero-Yield World
Return of Capital (ROC) Distributions Explained:
How Investors Can Leverage Constructive ROC Distributions
|Portfolio Manager||David Miller|
|Portfolio Manager||Charlie Ashley|
|Index||Nasdaq 5HANDL™ Index|
The 5% Target Distribution Strategy seeks investment results that correspond generally, before fees and expenses, to the price and yield performance of the Nasdaq 5HANDL™ Index. The strategy focuses on risk-adjusted returns that can support a target distribution and does not reach for yield. The strategy demonstrates a steady and consistent 5% target distribution is possible while preserving principal.
Targets a 5% annualized distribution consisting of income & return of capital
Allocates to a blended portfolio focused on risk-adjusted returns that can support the distribution rate
Non-dividend distribution component has the potential to provide favorable tax benefits
Why Traditional Income is Not Delivering for Investors
Yields have declined to historic lows.
Traditional income portfolios typically fail to deliver on retirement needs.
The reach for yield comes with increased risk.
2010 Bond Portfolio vs 2020 Bond Portfolio Chart: This is a simplified, commonly used analysis that assumes a 30-Year Treasury Note is purchased at the prevailing rate in 2010 and 2020 and then held until maturity. Withdrawal amounts start at 4% and are adjusted for 2% annual inflation expectations. Date Source: Bloomberg.
Target Distribution: An Innovative Approach
Focuses on risk-adjusted returns that can support a consistent 5% annualized distribution rate
Designed to maintain the investments principal value over the long-term
Uses a broadly diversified allocation to a balanced portfolio of U.S. equities, bonds and nontraditional investments
Offers potential tax advantages
Distinct Approach Recognized by Press
- FA Mag: 30/70 Fund Seeks Stable Returns With 7% Yield
- Investors Business Daily: New ETF Aims To Provide A Steady 7% Annual Distribution Rate
- Forbes: As Dividends Get Cut, ETF Offers Steady 7% Annual Distribution Rate
- The Street: A 7% Monthly Yield That’s Ideal For Retirement Income
- Nasdaq: Fake It or Make It: Call It What You Like, But Investors Need Yield
- ETF Trends: Get a Handle on Income With the HNDL ETF
About the Portfolio Manager
David Miller, Portfolio Manager
Mr. Miller is Co-Founder, Chief Investment Officer and Senior Portfolio Manager of Catalyst Capital Advisors LLC and Rational Funds Inc. He received a Bachelor of Science degree in Economics from the University of Pennsylvania, Wharton School, and a Master of Business Administration in Finance from the University of Michigan, Ross School of Business.
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.
For more complete information on Strategy Shares, download and view a prospectus or summary prospectus now or call (855) 477-3837 for a free prospectus or summary prospectus. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus or summary prospectus, which you should read carefully before investing. Investing involves risk, including loss of principal. There is no guarantee that this, or any investment strategy, will succeed. Shares of these ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
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 5HANDL 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.
HANDLS™ and HANDL™ are trademarks of Bryant Avenue Ventures LLC and have been licensed for use by Rational Advisors, Inc. 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 Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.
Investors should carefully consider the investment objectives, risks, charges and expenses of the ETFs. This and other important information about the Funds 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.