RDFI Profile
The Rareview Dynamic Fixed Income ETF focuses on achieving total return through a strategic allocation in fixed income closed-end funds. Under typical market conditions, the fund commits at least 80% of its net assets, including any borrowings for investment purposes, to investments in these closed-end funds. The strategy emphasizes acquiring funds that trade at either a discount or premium relative to their underlying net asset value and provide regular periodic cash distributions.
The fund's investment approach leverages closed-end funds as a vehicle to gain exposure to a broad array of fixed income securities. These securities often include a mix of U.S. and international bonds, with a particular focus on non-U.S. fixed income instruments. By investing in closed-end funds that hold foreign securities, including those from emerging markets, the fund gains indirect exposure to global debt markets, thereby diversifying its portfolio beyond domestic fixed income investments.
Rareview employs a tactical investment strategy to identify and select closed-end funds that align with its objectives of maximizing income and capital appreciation. The selection process involves evaluating funds based on various criteria such as discount/premium levels, distribution yields, and underlying asset quality. This disciplined approach aims to capitalize on market inefficiencies and opportunities in the fixed income space.
As a non-diversified fund, the Rareview Dynamic Fixed Income ETF may concentrate its investments in specific sectors or geographic regions based on market conditions and investment opportunities. This concentrated approach allows the fund to potentially enhance returns but also introduces higher levels of risk. The fund's focus on closed-end funds provides a unique strategy for accessing fixed income markets, particularly in regions and sectors that may not be easily accessible through traditional fixed income investments.
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