Adaptive High Income ETF (AHHX)

Adaptive High Income ETF is an actively managed exchange-traded fund listed on NYSE Arca under the symbol AHHX. It aims to provide current income along with real returns over time. The fund invests across a range of income-producing assets, including high-yield bonds, master limited partnerships, real estate investment trusts, dividend-paying stocks and preferred securities. A significant portion of the portfolio is normally kept in below-investment-grade fixed income.

The fund began trading in November 2021 as part of the Cavalier Investments fund family, with portfolio management provided through Adaptive Investments. Its approach relies on a proprietary model that looks at price momentum, volatility and recession indicators. When market trends turn negative, the managers can move toward Treasury bonds or use inverse and leveraged funds as hedges. This makes its holdings change more than a typical passive income fund.

Because AHHX is an active fund, its portfolio and risk profile can differ significantly from high-yield bond index funds. It is generally compared with income-oriented ETFs focused on junk bonds, preferred stock, MLPs and high-dividend equities. Investors should review the fund's prospectus for details on fees, distributions and risks.