The new ETF derives income streams from US Treasuries and option investing.

Nicholas Wealth Management has launched its inaugural ETF. The Nicholas Fixed Income Alternative ETF (FIAX US), listed on NYSE Arca, will provide investors with income from short-term US Treasuries as well as an options-based sleeve. (ETF Strategy)

Investors who want yield from a diversified fixed income portfolio without incurring the duration risk from traditional fixed income instruments would find the Nicholas Fixed Income Alternative ETF attractive.

Nicholas Fixed Income Alternative ETF

About 60-90% of the ETF’s portfolio would be invested in short-term US Treasuries. These serve the dual purpose of generating income as well as their use as collateral for making transactions in options to take advantage of bull call spreads, bear call spreads, bull put spreads, and bear put spreads.

These are option spreads on ETFs and indices linked to the performance of equities, fixed income, and commodities.

Fundspeak

“Since 2008, Nicholas Wealth Management has helped individuals secure their financial future with the goal of preserving capital from stock market losses,” says the firm on its website. “We don’t focus solely on how much our clients make in any given year, but our comprehensive approach maximizes the amount individuals get to keep from their hard-earned investment and retirement savings.”

The fund is led by David Nicholas, Founder and President of Nicholas Wealth Management, alongside Jay Pestrichelli, co-Founder and CEO of ZEGA Financial, and Michael Venuto, CIO of Toroso Investments.

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Image Credit: Bonds by Nick Youngson CC BY-SA 3.0 Pix4free