5 min readBy Beqa Bumbeishvili ETF Insider
How does the TFLT ETF work?
The TFLT ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
Global X Funds' TFLT issuer operates as a fund of funds, directing at least 80% of its assets towards securities in the Underlying Index, a collection of exchange-traded funds (ETFs). This investment strategy, constituting a non-fundamental 80% policy, endeavors to mirror the performance of the US 10-Year Treasury yield plus two percent (2.0%) annually, net of fees. The Underlying Index, devised by Wilshire Associates, employs a quantitative optimization methodology to balance exposure across various income-producing asset classes represented by the Underlying ETFs, including equities, bonds, senior loans, preferred securities, and real estate investment trusts. The portfolio is rebalanced quarterly to sustain a target yield, aiming to minimize overall risk while optimizing returns. With a passive indexing approach, the TFLT issuer, managed by Global X Management Company LLC, seeks to closely track the Underlying Index's performance, maintaining a correlation of over 95% before fees and expenses. Through representative sampling, the Fund aims to mirror the risk factors and performance attributes of the Underlying Index, albeit without necessarily holding all its constituent securities. Notably, the Fund remains committed to industry diversification, aligning its investment concentrations with those of the Underlying Index.
The TFLT issuer, managed by Global X Funds, implements a dividend strategy through its underlying index, which comprises a selection of exchange-traded funds (ETFs) targeting income-producing asset classes. With a focus on securities such as equities, bonds, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and energy infrastructure equities, the Fund aims to provide investors with a robust income stream. The underlying index utilizes a quantitative optimization approach developed by Wilshire Associates to achieve a target yield of the US 10-Year Treasury yield plus two percent (2.0%) annually, net of fees. This strategy is supported by rebalancing on a quarterly basis, ensuring an optimal allocation of assets to maintain the desired income objective while minimizing overall portfolio risk. Through its passive indexing approach, the Fund aims to closely track the performance of its underlying index, offering investors the potential for attractive dividend yields over time.
The TFLT issuer, managed by Global X Funds, employs a tracking strategy designed to closely follow the performance of its underlying index. This index consists of a diversified portfolio of exchange-traded funds (ETFs) representing various income-producing asset classes such as equities, bonds, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and energy infrastructure equities. Utilizing a passive indexing approach, the fund aims to replicate the composition and performance of its underlying index. The index's methodology, developed by Wilshire Associates, includes quantitative optimization techniques to achieve a target yield of the US 10-Year Treasury yield plus two percent (2.0%) annually, net of fees. Through periodic rebalancing, the fund adjusts its holdings to maintain alignment with the index's objectives while minimizing overall portfolio risk. By closely tracking its underlying index, TFLT offers investors the potential to participate in the returns generated by a diversified basket of income-producing assets.
The TFLT issuer, managed by Global X Funds, emphasizes a high correlation strategy aimed at aligning its performance closely with that of its underlying index. This index comprises a diverse range of exchange-traded funds (ETFs) representing income-producing asset classes such as equities, bonds, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and energy infrastructure equities. Through a passive indexing approach, the fund seeks to replicate the composition and performance of its underlying index. The advisor anticipates that over time, the correlation between the fund's performance and that of the underlying index will exceed 95%, before accounting for fees and expenses. By closely tracking its underlying index, TFLT aims to offer investors a reliable means of participating in the returns generated by a diversified portfolio of income-producing assets while minimizing tracking error.
The TFLT issuer, managed by Global X Funds, maintains a sector-neutral approach, prioritizing diversification across various income-producing asset classes within its underlying index. This index consists of a selection of exchange-traded funds (ETFs) representing sectors such as equities, bonds, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and energy infrastructure equities. By distributing investments across these diverse sectors, the fund aims to mitigate sector-specific risks and capture opportunities across multiple segments of the market. Additionally, the fund's sector-neutral stance aligns with its goal of closely tracking the performance of its underlying index, providing investors with exposure to a broad range of income-producing assets while minimizing concentration risk.
The TFLT issuer, managed by Global X Funds, offers exposure to a diverse array of income-producing asset classes through its underlying index. This index comprises a carefully selected mix of exchange-traded funds (ETFs) representing various sectors, including equities, bonds, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs), and energy infrastructure equities. By investing in these underlying ETFs, TFLT provides investors with a broad and balanced exposure to different sources of income across both developed and emerging markets. This exposure is designed to help investors potentially benefit from the income generated by a diversified portfolio of assets while managing risk through diversification across sectors and geographic regions.
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