On Friday, Teucrium closed out the week by launching the Yields For You Strategy A ETF (YFYA).
YFYA is an actively managed ETF with a net expense ratio of 1.16%. The fund aims to provide robust total return along with preservation of capital. Additionally, YFYA may also be able to generate capital appreciation for its investors.
A Fund of Funds
Primarily, YFYA’s portfolio consists of other underlying ETFs. In turn, these underlying ETFs invest in a wide variety of fixed income securities. For example, this fixed income exposure includes investment-grade bonds, floating-rate loans, foreign debt securities, and cash equivalents, among others.
To choose ETFs to invest in, the fund starts by examining the current macroeconomic environment. This is done through a menagerie of quantitative measurements. From there, the fund picks underlying ETFs with strategies aligned with its market outlook.
Constituents within YFYA’s portfolio may consist of funds of any maturity or duration. That said, the ETF particularly seeks to hold an effective duration of one year or less. However, this could change depending on market conditions.
Additionally, a smaller selection of underlying ETFs may be focused on equities. These mostly include preferred stock strategies focused on large- and midcap companies. Equity-related derivatives may also be used as a hedge against interest rate or market risk.
Given the relative uncertainty of the market and economic outlook, YFYA’s adaptive strategy may be a boon for investor portfolios. Given the degree of risk management the fund offers, YFYA could also work as a core holding.
With YFYA now available on the market, Teucrium offers 10 different strategies within the ETF wrapper. One of the largest Teucrium ETFs currently available is the Relative Strength Managed Volatility Strategy ETF (RSMV ), which launched earlier in January. That fund has well over $100 million in assets under management.
For more information, please visit VettaFi.com | ETF Trends.
