RMIF Profile
The ETF Series Solutions - LHA Risk-Managed Income ETF (RMIF) is an actively managed fund designed to generate current income through a diverse portfolio of fixed-income exchange-traded funds (ETFs). The fund’s investment strategy emphasizes broad exposure across various fixed-income securities, including investment-grade U.S. corporate bonds, U.S. Treasuries, Treasury Inflation-Protected Securities (TIPS), preferred stocks, high-yield bonds, floating rate debt, foreign corporate debt, and mortgage- and asset-backed securities.
The fund’s approach is characterized by a lack of specific maturity or credit rating requirements, allowing for a flexible and adaptive investment strategy. RMIF selects securities based on a proprietary analysis that evaluates yield relative to price and volatility trends. This analysis aims to identify the highest-yielding opportunities while managing risk. The discretionary allocation approach adjusts the fund's exposure based on changing market conditions and volatility trends.
In unfavorable market conditions, RMIF reallocates its investments to preserve capital by increasing exposure to more stable assets such as TIPS, money market instruments, investment-grade bonds, or floating rate bonds. Conversely, during favorable market conditions, the fund may increase its holdings in higher-risk assets like junk bonds, preferred equities, or emerging market bonds to enhance income potential.
The fund's strategy involves using a fund-of-funds wrapper, which requires careful consideration of total fees. This structure enables RMIF to strategically allocate resources across a wide range of fixed-income ETFs, aligning its investment approach with market conditions to optimize returns while managing risk effectively.
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