Chuck Fuller, Senior Vice President – Portfolio Manager at Nasdaq Dorsey Wright, Matthew Patterson, Co-Founder of Bryant Avenue Ventures LLC and David Miller, Portfolio Manager of HNDL, Strategy Shares ETFs discuss targeted income solutions in an inflationary environment.
Today’s investors are faced with historically low bond yields and widespread inflation across many industries and sectors. For retirees or those close to retirement, taking on unnecessary credit risk to generate additional income may not be an ideal solution. Fuller, Patterson and Miller point to the benefits of a target distribution strategy, which focuses on maximizing risk-adjusted returns and meeting day-to-day cash flow needs.
The Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL) seeks targeted risk-adjusted income and pays monthly distributions to its investors. The ETF allocates roughly 50% of its portfolio to core fixed income and large cap equity holdings and the other 50% to a “Dorsey Wright Explore Portfolio,” which provides tactical exposure to U.S. fixed-income, U.S. blend, U.S. equity and U.S. alternative assets, or categories that have historically provided high levels of income.
To learn more, register and watch Nasdaq’s webcast: Generating Income in an Inflationary Environment: How a Target Distribution Approach Can Help Investors Keep Pace with Rising Prices.
In an inflationary environment characterized by rising prices on essential goods and services, income investors require investment options that can generate sufficient income to fund their consumption needs. Trying to generate a meaningful yield often means taking on unacceptable credit risk or concentrating too heavily in high-yielding asset categories that carry significant idiosyncratic risk. For investors looking to fund their day-to-day lives, a better approach may be to focus on maximizing risk-adjusted returns and manufacturing a distribution to meet individual cash flow needs while managing risk and return. Target distribution strategies seek to leverage a modern portfolio theory approach focused on risk-adjusted returns to deliver steady cashflow to investors while maintaining principal over the long-run.
In this webinar, participants will learn about:
- Meeting cash flow needs for clients in an inflationary environment
- Using a unique target distribution approach to generate income without subjecting investors to excessive risk
- The Nasdaq Dorsey Wright and HANDLS Indexes approach to target distribution
- The potential benefits of a target distribution strategy for retirees