GLDB enables investors to generate income from a portfolio of investment grade corporate bonds while hedging against inflation with a gold overlay all in one ETFMay 18, 2021 09:00 AM Eastern Daylight Time
NEW YORK, N.Y.–(BUSINESS WIRE)–Strategy Shares, a family of exchange traded funds (ETFs) focused on bringing non-traditional strategies to the ETF marketplace, today launched the Strategy Shares Gold-Hedged Bond ETF (GLDB). This first of its kind ETF seeks to generate investment results that correlate, before fees and expenses, to the performance of the Solactive Gold-Backed Bond Index (the “Index”).
GLDB’s investment strategy is premised on the proposition that an investment in gold can potentially provide a hedge against inflation for a bond investment. The Index seeks to provide 100% exposure to the U.S. dollar-denominated investment grade corporate bond sector (the “Bond Component”) plus a gold inflation hedge with a notional value designed to correspond to the value of the Bond Component, with notional value reset on a monthly basis (the “Gold Hedge Component”).
David Miller, Strategy Shares Portfolio Manager for GLDB, commented, “Since 1973, following the end of Bretton Woods System, the value of the U.S. dollar has eroded by more than 80% because of inflation. Combine that with the fact that in recent decades the money supply has grown at an unprecedented rate, with M1 Money Supply increasing by more than 1200% since 2008, and you have consumers dealing with the impacts of a significant loss of purchasing power. With GLDB, we combine a gold overlay with bonds in one portfolio to give investors what we believe is an optimum way to generate income while maintaining purchasing power.”
The Bond Index aims to mirror the performance of investment grade corporate bonds issued in U.S. dollars. The Gold Hedge Index tracks the performance of the near month gold futures contracts listed on the Chicago Mercantile Exchange.
For more information on GLDB and Strategy Share’s ETF offerings, please visit: www.StrategySharesETFs.com.
About Strategy Shares
Strategy Shares is a family of exchange traded funds (ETFs) focused on bringing non-traditional strategies to the ETF marketplace. Currently, Strategy Shares offers three ETFs: the Strategy Shares Gold-Hedged Bond ETF (GLDB), the Strategy Shares Nasdaq 7HANDL™ Index ETF (HNDL) and the Strategy Shares Newfound/ReSolve Robust Momentum ETF (ROMO).
Investors should carefully consider the investment objectives, risks, charges and expenses of the Strategy Shares Gold-Hedged Bond ETF. This and other important information about the Fund is contained in the full or summary prospectus, which can be obtained by calling (855) HSS-ETFS (855-477-3837) or at www. strategysharesetfs.com. The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.
Investments involve risk including possible loss of principal. The Fund is classified as “non-diversified” to the extent that the Index concentrates in an industry so that a relative high percentage of the Fund’s assets may be invested in a limited number of issuers. The fund invests in the underlying constituents of the index that consists of a Bond and Gold component. The Fund may also invest in more aggressive investments such as foreign and emerging market securities (which may expose the fund to currency and exchange rate fluctuations), total return swaps and futures (which may involve leverage that could increase the volatility of the Fund and reduce its returns) and derivatives which may amplify volatility. Investing in bonds are subject to credit, prepayment and interest rate risk. As interest rates rise causes a decline in the value of fixed income securities owned by the fund.
The price of gold fluctuates over time. There is no guarantee that an investment in gold will increase or even maintain its value. Short-term, the price of gold has fluctuated widely. If gold markets continue to be characterized by wide fluctuations, the price may change in an unpredictable manner. Long-term, gold markets have historically experienced extended periods of flat or declining prices. There is no guarantee that the price of gold will move as expected relative to the U.S. dollar, nor is there any guarantee that gold will act as an effective inflation hedge. The Fund is a new fund with no history of operations as an ETF for investors to evaluate.
Solactive AG (“Solactive”) is the licensor of Solactive Gold-Backed Bond Index (the “Index”). The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Notwithstanding Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication with respect to the Index and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.
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