Strategy Shares on Wednesday launched a new ETF that seeks to generate results that correlate generally to the performance of an index within a new indexing category called Target Distribution Indexes.
The Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) is designed to support a 7.0% annual distribution rate, all or a portion of which may include a return of capital.
HNDL’s investment strategy seeks results that correlate generally to the performance of the Nasdaq 7HANDL™ Index, which was developed by Bryant Avenue Ventures in partnership with Nasdaq and Dorsey Wright.
The Nasdaq 7HANDL™ Index consists of a well-diversified, multi-asset portfolio of low-cost ETFs and employs modest leverage in an amount equal to 23% of the total portfolio. The Index seeks to offer the potential for high monthly distributions while maintaining a stable net asset value over time.
Jerry Szilagyi, CEO of Strategy Shares, said its mission is rooted in bringing alternative-focused ETFs to the market, and this latest fund addition renews this focus.
“The Strategy Shares Nasdaq 7HANDL™ Index ETF seeks to offer a steady 7% distribution, and is the first fund of its kind representing a new category of indexes,” he said. “HNDL is the only fund providing access to the Nasdaq 7HANDL™ Index, which is unique in its offering of a targeted steady distribution, diversified risk and liquidity.” Investors should not assume that the source of distribution from the Fund is net profit.
The Index’s goal is to represent a balanced portfolio of U.S. equities, bonds and alternatives, via investments in low-cost ETFs. These ETFs are split into two categories: a Core Portfolio and a Dorsey Wright Explore Portfolio. The Core Portfolio consists of a 70% allocation to U.S. aggregate fixed income ETFs and a 30% allocation to U.S. large cap equity ETFs. The Dorsey Wright Explore Portfolio consists of a tactical allocation to ETFs in various U.S. asset categories that have historically provided high levels of income, based on a proprietary methodology developed by Nasdaq Dorsey Wright Investment Research & Analysis that seeks to incorporate momentum, yield and risk.
HNDL 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.
For more information on new fund products, visit our new ETFs category.