Despite People Pillar weakness and an Average Process Pillar, Strategy Shares Nasdaq 7 Handl™ ETF gets enough right to retain its Morningstar Medalist Rating of Bronze. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-costliest quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in the Europe-Developed region and the healthcare sector compared with category peers. The team managing this passive strategy earns a Low People Pillar rating. To be considered a quality steward, this strategy's parent organization needs to improve factors like a lack of inside investments from portfolio managers and a bench of limited-tenure portfolio managers. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Vanguard Total Bond Market ETF

SPDR Portfolio Aggregate Bond ETF

iShares Core U.S. Aggregate Bond ETF

Alerian MLP ETF

Invesco Nasdaq 100 ETF

WisdomTree 90/60 US Balanced Fund

Vanguard Dividend Appreciation ETF

JPMorgan Equity Premium Income ETF

Xtrackers USD High Yield Corporate Bond ETF

Schwab U.S. REIT ETF

Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage. Strategy Shares Nasdaq 7 Handl™ ETF earns an Average Process Pillar rating.  The largest contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

 The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks investment results that correlate generally, before fees and expenses, to the price and yield performance of the NASDAQ 7 HANDL™ Index.  The fund will invest at least 80% of its assets in securities of the NASDAQ 7 HANDL™ Index (the "index"). The index consists of securities issued by exchange-traded funds ("ETFs") and is split into two components, and with a 50% allocation to fixed income and equity ETFs (the "Core Portfolio") and a 50% allocation to ETFs of 12 asset categories (the "Explore Portfolio").  

 The portfolio is overweight in energy and real estate relative to the category average by 14.0 and 6.6 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and healthcare, underweight the average by 6.4 and 4.6 percentage points , respectively. The portfolio is overweight in North America by 17.2 percentage points compared with the category average, and Emerging Europe's allocation is similar to its peers. The regions with low exposure compared to their category peers are Developed Europe and United Kingdom, underweight the average by 6.8 percentage points and 2.9 percentage points, respectively.

 For the strategy's fixed-income sleeve, interest rate risk exposure is being managed higher than comparable managed products in this category. However, compared with peers, credit risk has been somewhat lower. More explicitly, the portfolio exhibits a higher average credit rating of A in contrast to the category average’s BB but has a longer average duration of 5.9 years versus the average of 5.0 years.

Average

Process

Huntington’s team receives a Low People Pillar rating. The most substantial detractor from the rating is the managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns. Turnover at its parent firm also holds the team back. The firm's asset-weighted manager tenure of six years suggests it could do more to hold onto portfolio managers. The parent firm's five-year success ratio of 100% further limits the team. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

People

Huntington has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating. None of the firm’s assets are covered by an invested manager. Team members’ investments are viewed as helping to encourage long-term thinking and align portfolio manager and investor interests. With an average asset-weighted tenure of six years among the longest-tenured managers at Huntington, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. The firm's lineup has been durable. It has had a five-year success ratio of 100%, meaning that of the strategies with a five-year track record, 100% have survived and beaten their respective category median.

Below Average

Parent

Strategy Shares NASDAQ 7 HANDL ETF

HNDL is a fund of funds that targets a high distribution rate. The funds index reflects a balanced portfolio of US equities, fixed income, and alternative investments. The index is leveraged by a factor of 1.3x.

HNDL invests in a diversified portfolio of ETFs. It has a little bit of everything: equities, bonds, preferred shares, MLPs, and more. Although nothing is significantly wrong with the fund, it pales in comparison to an important peer.

HNDL: Good Diversified Multi-Asset Class ETF, But Better Choices Out There

Strategy Shares Nasdaq 7 Handl™ Index ETF is a unique fund-of-funds ETF that aims to deliver a consistent 7% annual distribution rate. The HNDL ETF's portfolio is comprised of 19 ETFs, including U.S. equities, bonds, and alternative investments.

HNDL: An Interesting Approach To Asset Allocation

Strategy Shares Nasdaq 7 HANDL Index ETF is a "fund of funds" that aims to generate returns that can support a 7% annual distribution. Since my last review in August, HNDL has posted total returns of +5.22% and will likely continue to outperform due to falling rates. HNDL's exposure to equities will amplify returns.

HNDL: A Moderately Conservative Strategy Begins Its Great Comeback

The Strategy Shares Nasdaq 7 Handl Index ETF is a highly complex ETF. HNDL has underperformed compared to low fee 60/40 strategies and active ETF asset allocation products which carry low fees. HNDL charges a high management fee of 0.96% and is underweight big tech compared to a traditional 60/40 portfolio.

HNDL: Avoid Due To High Fees And Complexity

Strategy Shares Nasdaq 7 Handl Index ETF is an ETF of ETFs, providing diversified exposure to various asset classes. The fund's investment strategy divides its assets equally between a core portfolio and an explore portfolio. Despite a decline in price due to rising interest rates, the fund has consistently met its objective of delivering a 7.0% annual distribution rate.

HNDL: How To Collect A 7%+ Yield By Investing In This Super ETF

The HNDL ETF splits its portfolio between low-cost fixed income and broad equity ETFs and a 'Dorsey Wright Explore Portfolio'. Despite a complex strategy, the HNDL ETF has significantly underperformed compared to the Vanguard Balanced Index Fund since its inception. Investors are advised to look beyond the headline 7% of NAV distribution and consider total returns when analyzing funds like HNDL.

HNDL: Reiterating Avoid Recommendation

HNDL is a diversified multi-asset class fund of funds ETF. HNDL offers investors diversified exposure to most relevant asset classes, with indirect exposure to tens of thousands of securities.

HNDL: Asset Class Diversification, 7.0% Distribution Yield, Reasonable Performance Track-Record

HNDL has a balanced equity and fixed income investments portfolio, and has a pre-fixed target rate of payouts, sustainability of which is questionable. During the past six months, all of HNDL's fixed income ETFs failed to generate positive price growth. Price returns of its equity ETFs were not good either.

HNDL: A Risky Fund Of Funds With A Targeted 7% Payout, Best Avoided

The HNDL ETF is marketed as an innovative momentum-based portfolio paired with core bond and equity funds. A key selling feature is a 7% of NAV distribution yield.

HNDL: Complex Strategy But Lags Simple Balanced Funds

HNDL is heavily invested in 7 ETFs that deliver low yield, and the negative price performance of 4 ETFs wipes out the positive growth of others. For the past 4.5 years since its inception, HNDL has failed to generate positive price growth on a consistent basis.

HNDL: Diversified Multi-Asset Fund-Of-Funds, With 7% Yield

HNDL is a diversified multi-asset class ETF. It offers investors broad-based exposure to all relevant asset classes, and tens of thousands of securities. Yields 7.0% to boot.

HNDL: Diversified Multi-Asset Class ETF, 7.0% Forward Distribution Yield

HNDL is an ETF of ETFs that aims to pay an annualized distribution of 7% monthly comprised of income, capital gains, and return of capital. HNDL's expense ratio is 0.97%.

HNDL: 2 Major Flaws I Need To Discuss

Strategy Shares Nasdaq 5handl Index ETF

The global financial crisis in 2008 caused many retirees to fall behind their savings goals. With millions of Baby Boomers retiring every year, that's a large investor base seeking income.

Multi-Asset Funds Target Steady, Consistent Income for Retirees

The new fund looks to invest in other ETFs and provide an annual distribution of 5%.

New Multi-Asset ETF Targets 5% Yield

Markets continue to be choppy as they are pushed up by increasingly hopeful news regarding the severity of Omicron and then back down again as the job market continues to tighten and put greater inflationary pressures on the economy. It can be difficult to find fixed-income opportunities, but Strategy Shares has a unique, targeted ETF [.

A Targeted Approach to Fixed Income with HNDL

The Strategy Shares NASDAQ 7 HANDL Index ETF pays an annualized 7% yield each month with a fraction of the volatility similar closed-end funds offer. The ETF is a success because of its structure and its transparency, which is simply to hold the lowest-cost ETFs from a fixed set of asset classes in varying weights. High-income investors enjoy uninterrupted, tax

HNDL For Retirees: Save The High 7% Yield, Scrap The High Volatility

HNDL is a diversified, leveraged, multi-asset class ETF. The fund aims to provide investors with annual 7.0% distributions, paid monthly.

HNDL: Strong Multi-Asset Class ETF, 7% Distribution Yield

HNDL just reduced its net expense ratio 20 basis points to 0.97% and has grown to over $1 billion in assets under management. HNDL's target distribution of 7% paid monthly has gone uninterrupted since its inception, and long-term modeling suggests it's sustainable even during recessions.

HNDL: This 7% Yielding CEF Alternative Is Getting Bigger And Cheaper

NEW YORK--(BUSINESS WIRE)-- #ETFs--The Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) Crosses the $1 Billion Asset Threshold

The Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) Crosses the $1 Billion Asset Threshold

HNDL is a fund of ETFs aimed at providing retirees a sustainable 7% yield without the volatility of competing closed-end funds.

HNDL: A Simple, Effective, 7% Yielding, Tax-Efficient ETF Of ETFs

Today's low-yield world requires income investors to get creative, as many fixed income strategies simply aren't delivering the goods. Fortunately, the world of exchange traded funds offers plenty of credible solutions, including the Strategy Shares Nasdaq 7 Handl Index ETF (HNDL).

A Nasdaq Index to Get a HNDL on Big Income Opportunity

HNDL is a single solution fund for retirees looking to earn a 7% yield paid monthly, and in January I confirmed this was sustainable in the long run. I also suggested two custom unlevered portfolios of ETFs that retirees could consider if they wished to avoid HNDL's 1.17% management fee.

Attention Retirees: HNDL Pays A 7% Annualized Yield Each Month, And It's Sustainable

NEW YORK--(BUSINESS WIRE)--Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL) Celebrates Three-Year Anniversary with Highest Morningstar Rating

Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL) Celebrates Three-Year Anniversary with Highest Morningstar Rating

The NASDAQ 7HANDL Index ETF seeks to provide investors with a consistent 7% annual yield paid monthly, and maintaining this will not be a problem going forward.

Backtesting The NASDAQ 7HANDL Index ETF

As advisors and investors search for more income in today's low-yield environment, unique solutions are more important than ever. One growing ETF option is the Strategy Shares Nasdaq 7 Handl Index ETF (HNDL).

News for Strategy Shares NASDAQ 7 HANDL ETF ETF (HNDL)