In today’s low-interest rate environment, coupon payments alone are unlikely to be enough to meet the objectives of yield-hungry investors. Income investors need a combination of yield and capital gains, going forward, and that’s exactly what the Tuttle Tactical Management Multi-Strategy Income ETF (TUTI) is designed to provide.
In addition to current income, the Tuttle Tactical Management Multi-Strategy Income ETF is designed to provide tactically managed exposure to the markets. Launched jointly by ETF Issuer Solutions and Tuttle Tactical Management on June 10, the former is the ETF’s advisor and the latter is the sub-advisor. Tuttle CEO Matthew Tuttle is the fund’s portfolio manager.
“The need for income investing strategies that can allocate tactically in the face of increasingly complex market conditions is clear,” said Mr. Tuttle, in a June 10 press release announcing the new ETF’s launch. “We believe that this ETF is debuting at a critical time for income-minded investors.”
The Tuttle Tactical Management Multi-Strategy Income ETF will follow a rules-based investment approach using Tuttle Management’s four uncorrelated tactical models:
- Income Relative Momentum, which uses monthly relative strength to select one or more income ETPs;
- Dividend Counter-Trend, which invests in dividend-paying stocks when markets are trending lower intraday, and cash when markets are trending higher intraday;
- Dividend Tactical Fundamental Earnings, which invests in dividend ETPs when markets are trending higher on weekly models, while earnings are trending downward; and in cash when the reverse is true; and
- Dividend Absolute Momentum, which invests in dividend ETPs when markets are trending higher on weekly models, and in cash when markets are trending lower, in accordance with their relative strength.
These models are based on Tuttle’s investment philosophy, which holds that markets move in recognizable short-term trends and countertrends; but that over the intermediate term, strong asset classes tend to stay strong, while weak asset classes tend to continue in weakness; and over the even-shorter term, markets are dominated by short-term disruptions and other noise. Tuttle’s models attempt to capture gains associated with these outlooks over varying time spans.
“The bond market remains challenging for investors, and we know that interest rates will rise,” said Mr. Tuttle. “There is no doubt that the industry appetite for tactical solutions has picked up.”
Mr. Tuttle also cited “strong interest” in his firm’s first ETF, the Tuttle Tactical U.S. Core ETF (TUTT), which debuted in February. William J. Smalley, President of ETF Issuer Solutions noted that ETF’s success in saying his firm is “very happy to have added TUTI to our listing of featured managers.”
The expense ratio for the fund is 1.28%, inclusive of a 0.90% management fee.
For more information, download a pdf copy of the fund’s prospectus.