IDX Dynamic Fixed Income ETF (DYFI)

Overview

The fund operates as an actively managed exchange traded fund (ETF) that primarily functions as a "fund of funds." This approach entails investing a substantially large portion of its assets, a minimum of 80%, into a diversified collection of other ETFs. These ETFs focus on a wide array of debt markets, facilitating exposure to various sectors without directly investing in them. This method allows for a broad and varied investment strategy, aiming to capitalize on different debt instruments and market conditions. Notably, the fund is classified as non-diversified, indicating a strategic choice to potentially concentrate investments in certain areas for higher returns, albeit with an increased level of risk.

Products and Services

In maintaining its core investment strategy, the fund offers investment in a diversified portfolio through the following vehicles:

• Corporate Bonds - Debt securities issued by corporations to fund operations, projects, or expansion. These instruments offer investors a way to earn returns through interest payments, with risk levels varying by the issuing corporation's creditworthiness.
• U.S. Government and Agency Securities - Fixed-income investments backed by the U.S. government or its agencies, renowned for their safety and reliability, providing a stable income stream through interest payments.
• Private Debt - Loans or debt securities issued by private companies, not publicly traded, often yielding higher returns due to increased risk compared to public debt instruments.
• Foreign Bonds and Foreign Sovereign Bonds - Debt instruments issued by foreign corporations or governments, including those from emerging markets, offering diversification and potential high returns but carrying higher risk due to political and currency fluctuations.
• Convertible Securities - Bonds or preferred shares that can be converted into a predetermined amount of the issuing company's common stock, combining the benefits of fixed-income investments with the potential for capital appreciation.
• Treasury Inflation Protected Securities (TIPS) - Government bonds specifically designed to protect against inflation, where the principal value adjusts with inflation, providing a real rate of return guaranteed by the U.S. government.
• Bank Loans - Loans issued by banks to companies, often with floating interest rates, offering investors income that adjusts with market rates, but with added credit risk.
• Asset-Backed Securities (ABS) and Mortgage-Backed Securities (MBS) - Bonds or notes backed by financial assets, typically loans or receivables, providing income through interest and principal payments made by the underlying borrowers.
• Cash Equivalent Instruments - Highly liquid investment securities with short maturities, offering a low-risk option for investors to maintain cash flow with minimal interest income.