IPPP Profile
The Preferred-Plus ETF is designed to provide investors with exposure to a diversified portfolio of preferred securities from both U.S. and international companies. The fund commits to investing at least 80% of its net assets, including any borrowings made for investment purposes, in preferred securities. These securities represent a hybrid investment vehicle, combining features of both equity and debt, and offer higher income potential compared to common stocks. The funds strategy includes investments in preferred securities across various issuer capitalizations, broadening its exposure to different market segments.
In addition to preferred securities, the fund may invest in publicly-traded partnerships (PTPs), which can provide additional income opportunities and diversification benefits. PTPs often operate in sectors such as energy, real estate, and natural resources, and their inclusion in the fund allows for a broader investment base. The funds approach to including PTPs enhances its ability to capture yield and diversification beyond traditional equity and debt securities.
The Advisor of the Preferred-Plus ETF intends to maintain approximately 10% of the funds asset exposure to a credit spread options strategy. This strategy involves trading options to manage credit risk and potentially enhance returns based on changes in credit spreads. However, the Advisor may adjust this exposure depending on prevailing market conditions to optimize performance and risk management. This tactical approach aims to balance income generation with effective risk control.
Managed by a team with deep expertise in fixed income and alternative investments, the Preferred-Plus ETF benefits from sophisticated investment strategies designed to maximize income and manage credit risk. The funds management seeks to leverage market opportunities and respond to shifts in the economic landscape, providing investors with a targeted solution for income-focused investment strategies. For those seeking a diversified approach to preferred securities and income generation, this ETF offers a comprehensive investment option aligned with long-term financial goals and risk tolerance.
|
