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

Summary

  • 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-efficient distributions regardless of market conditions or investor sentiment that can drive huge premiums and discounts to NAV.
  • I've done some additional backtesting, and the data supports the thesis that even during some of the worst market crises, the HANDL Index ETF could easily weather the storm.
  • HNDL is also included in the Hoya Capital Income Builder ETF Portfolio, a balanced combination of 18 ETFs that's currently yielding 6.13%.
  • Looking for a portfolio of ideas like this one? Members of Hoya Capital Income Builder get exclusive access to our model portfolio. Learn More »

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Investment Thesis

The Strategy Shares NASDAQ 7 HANDL Index ETF (NASDAQ:HNDL) is a prime example of what responsible portfolio management looks like: appropriate allocations to multiple asset classes working to achieve two goals: a consistent 7% yield

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This article was written by

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Build sustainable portfolio income with premium dividend yields up to 10%.

I'm a data-driven ETF analyst who likes to do deep dives into how funds are constructed and what factors are likely to make them winners or losers. I have a database of over 700 ETFs that I follow, so I'm able to show readers the best- and worst-performing funds in each category with each one I review. My preference is for stocks to have strong cash-generating and debt management qualities. I welcome all questions, comments, and suggestions for improvement, and I enjoy my time engaging with the Seeking Alpha community.

I hold a Bachelors degree in Commerce with a major in Accounting and hold a Certificate in Advanced Investment Advice from the Canadian Securities Institute. I have also completed the Portfolio Management Techniques course, fulfilling the educational requirements for a Chartered Investment Manager (CIM) designation. I have passed CFA Level 1, and I am currently studying to become licensed to advise on options and derivatives in Canada. This past November, I became a contributor for the new Hoya Capital Income Builder Marketplace Service, and enjoy working with and sharing ideas with some of the best researchers on Seeking Alpha. Sign up for a free trial today! Hoya Capital Income Builder.

Disclosure: I/we have a beneficial long position in the shares of SPY, VIG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: HNDL is part of the Hoya Capital Income Builder Model ETF portfolio.

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