It’s not information to anybody that we’re in a low, probably even damaging, actual rate of interes
It’s not information to anybody that we’re in a low, probably even damaging, actual rate of interest surroundings. There’s little on the horizon to recommend change. What’s an advisor to making an attempt to generate shopper money circulate to do? Assume outdoors the mixture.
Within the upcoming webcast, Tactical Excessive Yield Options for In the present day’s Yield-Starved Setting, Jeffrey Thompson, CEO, Donoghue Forlines; and Matthew Bartolini, Head of SPDR Americas Analysis, State Road International Advisors, will talk about embody different revenue producing belongings in your portfolio, however extra importantly, how to consider managing danger within the hunt for yield.
For instance, the just lately launched TrimTabs Donoghue Forlines Tactical Excessive Yield ETF (DFHY) can assist take part within the excessive yield bond market that provides typically excessive coupon charges that present a excessive degree of present revenue.
The TrimTabs Donoghue Forlines Tactical Excessive Yield ETF tries to mirror the efficiency of the TrimTabs Donoghue Forlines Tactical Excessive Yield Index, which goals to seize nearly all of the upside and keep away from nearly all of the draw back of the excessive yield asset class throughout a full credit score market cycle.
The ETF can determine intermediate time period developments and be invested within the excessive yield asset class for almost all of an uptrend, shifting right into a defensive place to keep away from downtrend.
“The technique makes use of proprietary defensive ‘Tactical’ indicators to try to mitigate draw back volatility and protect capital by shifting primarily in direction of intermediate time period treasury publicity throughout market declines,” in response to TrimTabs. “Excessive Yield bonds have usually been much less rate of interest delicate than increased high quality mounted revenue asset courses and never as unstable as dividend paying shares.”
“We imagine that combining Excessive Yield with Tactical Defensive Threat Administration is a differentiator in Index and ETF development,” provides Donoghue Forlines.
Monetary advisors who’re eager about studying extra a couple of tactical high-yield technique can register for the Thursday, January 21 webcast right here.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.