Investors Need Income
Total return ultimately determines the amount of resources an investor has at his or her disposal.
We believe investors who need predictable monthly cash flow are best served by pairing a high Sharpe ratio (total return portfolio) with a managed distribution rate.
HANDLS™ Indexes were created in partnership with Nasdaq Global Indexes.
The Nasdaq 7HANDL™ Index represents a diversified, balanced portfolio that was designed to deliver high targeted distributions while applying the philosophies of modern portfolio theory to maximize risk-adjusted performance.
The Nasdaq 7HANDL™ Index consists of a well-diversified, multi-asset portfolio of 19 low-cost ETFs and seeks to offer the potential for high monthly distributions while maintaining a stable net asset value over time. The index is unique in that it is designed to support a 7.0% annual distribution rate in an effort to maintain a steady distribution and was created as a risk-optimized tool for investors.
“What the world needs is real solutions for people who are in the drawdown portion of their investment life.”
A New Way to Income
Read our original concept whitepaper published in January 2018 which explained what the 7HANDL Index was designed to deliver.
Sometimes referred to as “managed payout funds,” targeted distribution funds aim to deliver lifetime income payments via a minimum distribution amount. Certain funds offer a specified monthly payout while others deliver variable payments based upon fund performance. Let’s examine ETFs that follow this strategy.
Our second whitepaper, published in 2018, explains establishing a 7% managed distribution rate.
Demographics Demand a New ApproachBy David Cohen and Matthew Patterson
May/June 2018 Investments & Wealth Monitor
The average age of retirement in the United States is 63 and the average length of retirement is 18 years, thereby making retirement a long-term liability. We propose that this fundamental shift in investor objective requires a parallel shift in the approach to investment objectives.
Published in May 2018 in the distinguished Investments & Wealth Monitor, this journal article explains why the important metric is risk adjusted total return and not yield and illustrates how we arrived at 7% as the expected total return.
Matt Patterson Cofounder, HANDLS Indexes
Matt joins Jill Maladrino of Nasdaq to explain how the Nasdaq 7HANDL Index is different from other balanced indexes.