Morningstar Income & Growth ETF (0P0000853T)

Overview

The fund described prioritizes a balanced investment approach, dedicating a significant portion of its assets to purchasing securities of exchange-traded funds (ETFs). It follows a strategic allocation of its investments, focusing on both fixed-income securities, money market instruments, and equity securities across a broad spectrum of company sizes. Moreover, it diversifies its portfolio with potential investments in commodities and commodity futures, aiming for a comprehensive market coverage. This non-diversified fund operates with the flexibility to borrow for investment purposes, adhering to its principal strategy of maintaining at least an 80% investment in ETF securities.

Products and Services

• Fixed-Income and Money Market ETF Investments:

  This segment of the fund's portfolio focuses on ETFs that invest primarily in fixed-income securities and money market instruments, accounting for about 60% of the ETF investment allocation. It aims to provide investors with stable returns and lower risk compared to equity investments, making it suitable for conservative investment strategies.

• Equity Securities ETF Investments:

  About 40% of the ETF investment allocation is directed towards ETFs that focus on equity securities of large, medium, and small-sized companies. This component of the fund’s strategy is designed to capture the growth potential of the equity market, offering a balance between risk and return by diversifying across various company sizes.

• Commodities and Commodity Futures Investments:

  While not the primary focus, the fund also explores opportunities within commodities and commodity futures. This includes investments that could potentially enhance portfolio diversification and offer exposure to non-traditional assets, contributing to the overall risk management strategy.