TOPS Managed Risk Moderate Growth ETF Portfolio Class 2 (0P0000RYUA)

Overview

The company operates a complex investment strategy utilizing a fund-of-funds approach. This entails investing a significant portion of its assets, specifically at least 80%, in exchange-traded funds (ETFs). To manage market risk and aim for reduced return volatility, it also incorporates the use of exchange-traded futures contracts. The firm's investment focus spans a broad spectrum of asset classes through the ETFs it invests in. These asset classes include government and corporate fixed income securities, equity securities through common and preferred stocks, real estate investment trusts (REITS), and securities linked to natural resources.

Products and Services

• Exchange-Traded Funds (ETFs)

  The majority of the fund's investments are in ETFs that cover various asset classes. This diversification strategy aims to spread risk across different sectors and types of investments, from government and corporate bonds to stocks and real estate, and even natural resource sectors. The ETF approach enables the fund to participate in a broad range of market segments through a single investment vehicle.

• Futures Contracts

  To hedge against market risk and volatility, the fund engages in exchange-traded futures contracts. These financial derivatives are used strategically to offset potential losses in the fund’s primary investments, providing a form of insurance against adverse market movements. This is crucial for preserving the fund's value during times of market uncertainty.

• Government and Corporate Fixed Income Securities

  Investments in fixed income securities offer a stable income stream through regular interest payments, contributing to the fund's goal of risk reduction and return stability. Government and corporate bonds are selected based on their ability to provide reliable returns, offering a safer investment avenue within the portfolio.

• Common and Preferred Stocks

  The fund's involvement in the equity markets through common and preferred stocks allows for potential growth in capital. These investments can offer higher returns than fixed income securities, albeit with increased risk. The strategic selection of stocks is aimed at balancing the fund's overall risk while seeking to capitalize on the growth opportunities available in the equity markets.

• Real Estate Investment Trusts (REITS)

  REITS offer the fund exposure to the real estate sector without the necessity of directly owning property. This type of investment can provide high dividends in addition to potential capital appreciation, making it an attractive component of the fund's diversified portfolio strategy.

• Natural Resource-Related Securities

  The fund invests in securities linked to natural resources as a means to diversify further and hedge against inflation. These investments can include commodities, energy resources, and precious metals, among others. The performance of natural resource-related securities can be less correlated to traditional equity and fixed income investments, providing an additional layer of diversification.