TOPS Managed Risk Balanced ETF Portfolio Investor Class (0P000162BG)

Overview

The fund described operates with a fund-of-funds approach, concentrating on investing a minimum of 80% of its resources in exchange-traded funds (ETFs). This strategy is utilized under average market circumstances. Furthermore, the fund leverages exchange-traded futures contracts as a technique to hedge against market risks and to aim for a reduction in return volatility. It focuses on diversification not only across different asset classes but also through the selection of ETFs that invest in a variety of securities, including government and corporate fixed income securities, stocks (both common and preferred), Real Estate Investment Trusts (REITs), and natural resource-related securities. This diversified approach is intended to manage risk while seeking to provide returns to investors.

Products and Services

• Exchange-Traded Funds (ETFs)

  The foundation of the fund's investment strategy hinges on ETFs that span various asset classes and market sectors. These ETFs provide the benefits of diversification within a single transaction, along with the liquidity and ease of trading similar to individual stocks. By investing predominately in ETFs, the fund aims to allocate assets across multiple sectors, such as fixed income and equities, to optimize returns and manage risk.

• Exchange-Traded Futures Contracts

  As part of its risk management strategy, the fund uses exchange-traded futures contracts. These financial derivatives are employed to hedge against market volatility and protect the fund's investments from significant downturns. The futures contracts allow the fund to speculate on the future direction of markets or products, potentially offsetting losses in its underlying portfolio.

• Fixed Income Securities

  The fund invests in government and corporate fixed income securities to provide stability and generate interest income. Fixed income securities are loans to governments or corporations that pay investors a fixed rate of return over a specified period. This component of the portfolio offers a balance to more volatile investments, potentially providing steady income and reducing overall portfolio risk.

• Common and Preferred Stocks

  Investments in common and preferred stocks allow the fund to participate in the growth potential of corporations. While common stocks offer voting rights and the potential for dividends, preferred stocks typically provide higher dividend yields and priority over common stock in the event of liquidation. This blend of equity investments can contribute to the fund's performance through capital appreciation and income.

• Real Estate Investment Trusts (REITs)

  REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. By investing in REITs, the fund gains exposure to the real estate market, which can offer attractive returns and dividends. Real estate investments can also act as a hedge against inflation and provide diversification benefits to the fund's portfolio.

• Natural Resource-Related Securities

  The fund includes investments in securities related to natural resources, such as energy, minerals, and commodities. These investments can offer growth potential based on global supply and demand trends, geopolitical factors, and advancements in technology. Typically more volatile, these securities can contribute to the fund's return potential while adding an element of diversification against traditional stock and bond investments.