Yields Update
The SEC or 30-day yield is one type of a forwarding looking yield that can be applied to bond funds for comparative purposes. It was specifically developed by the Securities and Exchange Commission with the objective of creating a metric that could standardize yields purported by bond funds, incorporating the latest dividends, interest and expenses to generate an implied yield. Having a standard metric like a SEC yield is convenient as it allows investors to compare “apples to apples”.
The following exchange-traded funds (“ETF”) are focused on shorter-duration, investment grade credits in fixed or floating rate, interest bearing products. FLOT, FLRN, JPST and MINT are some of the biggest and well-established ETFs in the space. To be clear, these four do not represent an exhaustive list of comparable ETFs to AAA.
30-day SEC Yields for Credit ETFs as of February 26, 2021
|
Ticker |
30-day SEC Yield |
Expense Ratio |
|
AAA |
1.04% |
0.25% |
|
FLOT |
0.21% |
0.20% |
|
FLRN |
0.25% |
0.15% |
|
JPST |
0.32% |
0.18% |
|
MINT |
0.22% |
0.35% |
Average Annual Total Return at Market Price as of December 31, 2020.
|
|
Inception Date |
|
|
|
Since Inception |
|
AAA |
9/9/20 |
NA |
NA |
NA |
0.60% |
|
FLOT |
6/14/11 |
0.87% |
1.89% |
NA |
1.38% |
|
FLRN |
11/30/11 |
0.77% |
1.94% |
NA |
1.62% |
|
JPST |
5/17/17 |
2.18% |
NA |
NA |
2.44% |
|
MINT |
11/16/09 |
1.62% |
2.12% |
1.51% |
1.52% |
Average Annual Total Return at NAV as of December 31, 2020.
|
|
Inception Date |
|
|
|
Since Inception |
|
AAA |
9/9/20 |
NA |
NA |
NA |
0.31% |
|
FLOT |
6/14/11 |
0.91% |
1.92% |
NA |
1.38% |
|
FLRN |
11/30/11 |
0.86% |
1.96% |
NA |
1.63% |
|
JPST |
5/17/17 |
2.18% |
NA |
NA |
2.42% |
|
MINT |
11/16/09 |
1.63% |
2.11% |
1.52% |
1.52% |
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. AAA Performance current to the most recent month-end can be obtained by calling 917.535.5737.
The market price is the final price at which a security is traded on a given trading day. Net Asset Value (NAV) is value per share on a specific date or time.
Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns.
Contact Information:
Todd Themistocles
Email: tthemistocles@altacfunds.com
Phone: 917-535-5737
Website: www.aafetfs.com
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and once available a copy may be obtained without charge, by calling the Fund at 1-800-617-0004. Read it carefully before investing.
Investing involves risk. Principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
The Fund is also subject to the following risks: Collateralized Loan Obligations (CLOs) are generally backed by a pool of credit-related assets that serve as collateral. Accordingly, CLO securities present risks similar to those of other types of credit investments, including default (credit), interest rate and prepayment risks. In addition, CLOs are often governed by a complex series of legal documents and contracts, which increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. The Fund’s income may decline if interest rates fall.
Investing in both actively and passively managed funds involves risk and principal loss is possible. Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Actively managed funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.
A basis point (“bps”) is equivalent to one hundredth of one percent.
An investment grade is a rating that suggests a municipal or corporate bond issuance presents a relatively low risk of default given underlying credit metrics.
The AAF First Priority CLO Bond ETF is distributed by Quasar Distributors, LLC. No other products mentioned are distributed by Quasar Distributors, LLC.