The DGA Core Plus Absolute Return ETF (HF) seeks to generate positive returns regardless of market direction through an absolute return strategy that combines multiple asset classes and hedging techniques. This alternative investment approach aims to deliver consistent performance with low correlation to traditional stock and bond markets.
How It Works
HF employs an actively managed, multi-strategy approach that combines long and short positions across various asset classes including equities, fixed income, currencies, and derivatives. The fund uses sophisticated hedging techniques and risk management tools to target positive returns in both rising and falling markets. Portfolio allocation and positioning are adjusted dynamically based on market conditions, with the goal of maintaining low volatility while capturing alpha opportunities across global markets.
Key Features
- Exceptionally high 10.80% dividend yield provides substantial current income potential for yield-seeking investors in low-rate environments
- Zero expense ratio eliminates management fees, allowing investors to capture the full return potential of the underlying strategy
- Recently launched fund offering exposure to institutional-quality absolute return strategies previously available only to large investors
Risks
- This ETF can lose value if complex hedging strategies fail to perform as expected, potentially resulting in losses during both market upturns and downturns
- High dividend yield may not be sustainable and could be reduced significantly if the underlying strategy underperforms or market conditions deteriorate
- As a newly launched alternative strategy fund, performance track record is limited and actual results may differ substantially from expectations
Who Should Own This
Best suited for sophisticated investors with medium to high risk tolerance seeking portfolio diversification beyond traditional stocks and bonds. Appropriate as a satellite holding (5-15% allocation) for investors with 3+ year time horizons who understand alternative investment complexities and can withstand potential volatility in pursuit of absolute returns.