DVDN Profile
The Kingsbarn Dividend Opportunity ETF is designed to achieve its investment objectives by focusing primarily on dividend-paying companies. In normal market conditions, the fund aims to allocate at least 80% of its net assets to equities that provide regular dividend income. This strategic allocation is intended to deliver a combination of income and capital appreciation by investing in companies with strong dividend histories and potential for sustainable dividend growth.
The fund places a significant emphasis on investing in publicly listed equity securities, with a particular focus on U.S. mortgage Real Estate Investment Trusts (REITs) and business development companies. These entities typically invest in a range of financial instruments including residential and commercial mortgage loans, business loans to private companies, and various derivatives. The inclusion of mortgage REITs and business development companies is aimed at capturing opportunities in the real estate and lending sectors, providing diversification within the fund's portfolio.
Mortgage REITs are specialized in investing in real estate assets through mortgage loans and mortgage-backed securities, which can offer attractive yields. Business development companies, on the other hand, provide capital to small and medium-sized private companies, potentially offering higher returns due to the higher risk and reward associated with these investments. The use of derivatives within the fund is intended for both investment purposes and risk management, enhancing the fund's ability to navigate various market conditions.
As a non-diversified fund, the Kingsbarn Dividend Opportunity ETF concentrates its investments within specific sectors, focusing on mortgage REITs and business development companies. This targeted approach reflects the fund's strategy to maximize income through specialized financial instruments and sector-specific opportunities. The concentration in these areas means that the fund may exhibit higher volatility compared to more diversified investment vehicles, aligning with the goals of investors seeking higher yields and willing to accept the associated risks.
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