SSFI Profile
The Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF is a strategic fund of funds designed to achieve its investment objectives by primarily investing in unaffiliated fixed income exchange-traded funds (ETFs). This approach allows the fund to gain diversified exposure to various fixed income categories through a selection of underlying ETFs, which in turn invest in a range of fixed income securities. The funds investment strategy aims to optimize income generation and manage risk by leveraging the expertise of multiple fixed income managers.
Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to fixed income securities and related instruments. This includes derivatives and other financial instruments that exhibit economic characteristics similar to traditional fixed income securities. By investing indirectly through underlying funds, the ETF offers broad exposure to fixed income markets while benefiting from the specialized management of those underlying ETFs.
The funds non-diversified nature means that it may concentrate its investments in a limited number of underlying ETFs or fixed income categories. This focused approach is designed to enhance potential returns by targeting specific sectors or strategies within the fixed income market. However, it also introduces a higher level of risk compared to more broadly diversified fixed income funds, as the performance of the ETF is closely tied to the performance of the selected underlying funds.
In essence, the Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF provides investors with a sophisticated tool for accessing a diverse array of fixed income investments through a fund of funds structure. Its strategic investment in underlying fixed income ETFs and the use of derivatives allows for targeted exposure to various fixed income sectors, aiming to deliver optimized income and risk management in the fixed income space.
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