The Tactical High-Yield Income ETF (THY) is managed by an experienced team of financial professionals who employ a tactical investment strategy. The fund's adviser aims to achieve its investment objectives by strategically investing in a diversified portfolio of income-producing securities, including high-yield bonds, investment grade bonds, municipal bonds, U.S. Treasuries, and cash equivalents. To gain exposure to these securities, THY primarily invests in exchange-traded funds (ETFs), options on ETFs, equities, and indices, as well as futures and options linked to domestic and foreign high-yield debt instruments, also known as junk bonds, and U.S. or foreign cash equivalents.
The iBoxx® USD Liquid High Yield Index Dividend reflects the dividend distribution strategy of an ETF that employs a systematic trend-following approach. This ETF's dividend eligibility is influenced by the performance of high-yield corporate bonds issued in the U.S., which form the core of the iBoxx® USD Liquid High Yield Index. Dividend distributions from this ETF occur based on a set of indicators, including a Risk Ratio, High Yield Indicator, 50/50 Indicator, and T-Bond Indicator. The ETF follows a rules-based methodology that directs its exposure to different positions, which can be 100% to the high-yield corporate bonds index, 50% to both the high-yield corporate bonds index and the U.S. Treasury bonds maturing in 7 to 10 years, or 100% to the U.S. Treasury bonds index. The Risk Ratio is used to signal changes in the ETF's position, with distributions occurring based on indicators such as the High Yield Indicator, which triggers when the Risk Ratio surpasses its 100-day moving average, and the 50/50 Indicator, which activates when the Risk Ratio falls below its 100-day moving average for five consecutive days. The dividend policy of this ETF is designed to provide investors with returns based on the performance of the underlying indexes. Depending on the triggered indicators, investors can expect dividend distributions to align with the ETF's position, which may range from high-yield corporate bonds to U.S. Treasury bonds. This approach allows investors to benefit from both income generation and potential capital appreciation based on the ETF's dynamic allocation strategy.
The Alternative Sources Tactical High-Yield ETF (THY) employs a tactical income strategy, aiming to achieve its investment objectives by investing in a diversified portfolio of income-producing securities. These securities include high-yield bonds, investment-grade bonds, municipal bonds, U.S. Treasuries, and cash equivalents. THY primarily gains exposure to these assets through investments in exchange-traded funds (ETFs), options on ETFs, equities, and indices, as well as futures and options related to domestic and foreign high-yield debt instruments, commonly referred to as junk bonds, and U.S. or foreign cash equivalents. In pursuit of its income-focused strategy, THY's portfolio allocation may vary based on market conditions. During bullish market conditions, the fund could be invested up to 100% in high-yield debt instruments, aiming for returns similar to those of the BofA Merrill Lynch High Yield Cash Pay Index. The fund defines high-yield debt instruments as corporate bonds or other debt instruments rated below Baa3 by Moody’s or below BBB by S&P, categorizing them as below investment grade. Furthermore, THY maintains a secondary objective to mitigate risk during adverse market conditions. When such conditions are identified by the adviser, the fund may shift to a defensive position or allocate 100% to U.S. Treasuries, short-term fixed-income securities, or U.S. or foreign cash and cash equivalents. The flexibility to invest in a wide range of fixed-income assets and employ market-timing strategies makes THY a versatile option for investors seeking a tactical approach to income generation. The adviser utilizes technical analysis, closely monitoring price movements and momentum in high-yield bond markets, to determine the optimal allocation within the fund's portfolio. This analysis informs buy and sell decisions for the fund's holdings, allowing for active and frequent trading to align with the fund's investment objectives. THY's tactical income strategy offers investors the potential for income generation while actively managing risk in changing market conditions.
The correlation aspect of the Tekla Income Edge Fund is influenced by its strategic investment approach, which primarily focuses on income-producing securities, including high-yield bonds, investment grade bonds, municipal bonds, U.S. Treasuries, and cash/cash equivalents. Given its diverse asset mix, Tekla Income Edge Fund's correlation with various market segments and economic conditions can vary. Investors seeking a deeper understanding of these correlations can utilize the ETF Insider web app, which provides comprehensive data and visualizations, allowing for informed decisions and insights into Tekla Income Edge Fund's behavior within investment portfolios and its overlap with other assets.
The THY ETF, Tactical High-Yield Sector, focuses on income-producing securities with a tactical approach. This ETF primarily invests in a portfolio of high-yield bonds, investment-grade bonds, municipal bonds, U.S. Treasuries, and cash equivalents. It also utilizes options on ETFs, equities, and indices, along with futures and options linked to domestic and foreign high-yield debt instruments. The THY ETF's objective is to generate income, and it may have exposure to junk bonds and cash equivalents. Additionally, it employs a tactical strategy that adapts to market conditions, potentially shifting its allocation to U.S. Treasuries and short-term fixed income securities during unfavorable market conditions. The ETF's focus on high-yield debt instruments adds a risk element to its portfolio, which can be mitigated through tactical allocation decisions.
The exposure characteristics of actical High-Yield Income ETF emphasize a tactical approach to income generation through a diversified portfolio of income-producing securities. The fund primarily invests in high-yield bonds, investment-grade bonds, municipal bonds, U.S. Treasuries, and cash/cash equivalents. It gains exposure to these securities primarily through investments in exchange-traded funds (ETFs), options on ETFs, equities, and indices. Additionally, it utilizes futures and options related to domestic and foreign high-yield debt instruments, also known as junk bonds, and U.S. or foreign cash equivalents to enhance its exposure. The fund's strategy may vary, aiming for income generation during bullish periods while shifting to a defensive stance during unfavorable market conditions, which could lead to a full allocation to U.S. Treasuries and short-term fixed income securities, U.S. or foreign cash, or cash equivalents.If you want to explore the exposure of actical High-Yield Income ETF or any other U.S. ETFs in-depth and gain valuable insights, consider using ETF Insider's web app and visualization tools. These tools can help you discover detailed information about market exposure, overlap, correlations, and more for various ETFs, facilitating well-informed investment decisions.
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