iQ Global ETF Income Model

INVESTMENT OBJECTIVE

The iQ Global ETF Income Model's primary goal is current income; capital appreciation is its secondary goal.

DIVERSIFIED STARTING UNIVERSE

The iQ Global ETF Income Model chooses international and domestic Exchange-Traded Funds from the income categories listed below:

  • Preferred Stock | Real Estate | Domestic High Grade Corporate Bonds | U.S. and International Government | International High Grade Corporate Bonds | Loan Participation | High Yield Corporate Bonds | Treasury Inflation-Protected Securities (TIPS)

UNEMOTIONAL & RULES-BASED PROCESS

The iQ Global ETF Income Model implements the following transparent and repeatable rules-based process:

  • Define the Universe

    • All Domestic and International Bond and Preferred Stock exchange traded funds traded on United States exchanges.

  • Sort by Trading Volume and select the top 150

  • Sort by current yield and select the top 50

  • Sort by 3-month exponential price momentum and select the top 15.

  • Sort by 6-month relative strength and select the top 5

The Model reconstitutes every Feb, May, Aug, and Nov

The potential benefits of a global approach to income

A global income approach diversifies income investments across asset classes and regions to generate stable income and reduce risk. It captures global income opportunities from bonds, preferred stocks, real estate, and other income-generating assets.

The benefits of a global income approach to investing include:

  • Diversification: Broad investment in income-generating assets across regions and sectors reduces overall portfolio risk.

  • Higher Yield Potential: Access to higher yielding assets in regions or sectors with greater yields than the investor's home country.

  • Inflation Protection: Assets like real estate, commodities, and inflation-linked bonds offer protection against inflation, essential for stable long-term income generation.

  • Capital Growth Opportunity: Alongside stable income, high-yield bonds and dividend-paying stocks may offer potential capital growth over the long term.

Investing in a mix of assets across different regions and sectors can provide the diversification and stability necessary to generate a sustainable income stream over the long term.

Global bond ETF strategies involve investing in exchange-traded funds (ETFs) that track bonds from various countries and regions worldwide, aiming to provide exposure to the global fixed-income markets. While these strategies seek to diversify risk and capture opportunities in different markets, they come with inherent risks, and the performance can be influenced by factors such as interest rate fluctuations, credit risks, and geopolitical events.