MSTI Profile
Madison ETFs Trust (MSTI) is a fund designed to provide substantial income gains by investing in a diversified portfolio of high-quality, lower-risk securities. The fund primarily focuses on U.S. corporate and government bonds rated investment grade, but it also has the flexibility to include bonds of lower ratings and asset-backed securities. By holding between 100 and 500 securities, MSTI aims to maintain a well-diversified portfolio that balances credit risk, sector exposure, and yield curve positioning.
The fund's investment strategy is centered around maintaining a conservative profile, with a goal of keeping the average portfolio duration at three and a half years or less. This approach is intended to manage interest rate risk while providing stable income. MSTI's selection process emphasizes securities with strong credit quality and favorable risk-return characteristics, aligning with its objective of achieving income gains while minimizing risk.
MSTI employs the Advisers Participate and Protect methodology, which is designed to capitalize on opportunities during market upturns while implementing strategies to mitigate potential risks during market downturns. This methodology reflects a proactive approach to managing the fund's exposure to market fluctuations, aiming to enhance returns and protect capital in varying market conditions. Despite these efforts, the fund acknowledges that its conservative strategy cannot guarantee specific outcomes or complete risk elimination.
Overall, Madison ETFs Trust (MSTI) is committed to delivering income through a disciplined investment approach focused on high-quality, lower-risk securities. The fund's combination of strategic duration management, diversified holdings, and risk mitigation strategies seeks to offer investors a reliable source of income while navigating the complexities of the bond market.
|
