Of all the ETF trends that took off in 2024, one of the more fascinating ones is the surge in derivative income ETFs. Oftentimes, these funds provide a blended exposure of current income and long-term equity exposure.
With 2024 rapidly coming to a conclusion, some investors may want to look closer at their fixed income portfolios before the new year begins. Recently, members of the Natixis Investment Management team discussed their outlook for the post-election fixed income landscape.
Next year will bring an array of policy and regulatory changes with wider-reaching implications for markets and investors. Heading into the new year, the Natixis Gateway Quality Income ETF (GQI) is worth consideration for the variety of use cases it offers, including quality equity exposures and income generation.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
John Ritter Ritter Daniher Financial Advisory LLC / DE | 87 | $4,877.19 | $5,169.54 | $292.35 | 5.99% |
Jill Batley Gateway Wealth Partners LLC | 4,094 | $224,582 | $245,230.6 | $20,648.6 | 9.19% |
Christopher C. Powers Farther Finance Advisors, LLC | 359 | $20,486.05 | $21,338.96 | $852.91 | 4.16% |
| GPW Gentry Private Wealth LLC GENTRY PRIVATE WEALTH, LLC | 5,465 | $311,860 | $326,643.05 | $14,783.05 | 4.74% |
| EFL Envision Financial LLC Envision Financial LLC | 8,790 | $480,516.72 | $524,719.05 | $44,202.33 | 9.2% |
| ARCA Exchange | US Country |
The fund operates as an actively-managed exchange-traded fund (ETF) that primarily targets investors seeking to integrate a blend of high-quality stocks and written index call options into their investment strategy. By aiming to invest in a diversified portfolio of U.S. large- and mid-capitalization stocks, selected based on certain quality characteristics and fundamental metrics, the ETF endeavors to offer a balanced risk-return profile. Gateway Investment Advisers, LLC, the investment advisor for the fund, leverages its expertise in identifying these quality stocks, bearing in mind the goal of achieving the fund's investment objective.
This product focuses on providing investors with access to actively managed investment strategies within the ETF format. Unlike traditional passive ETFs that track a specific index, these ETFs leverage the expertise of portfolio managers to select investments, aiming to outperform a benchmark index. The fundamental objective is to offer enhanced return potential while managing risk, catering to investors who seek a more hands-on approach to index investing.
As part of its core investment strategy, the fund prioritizes investments in high-quality U.S. large- and mid-capitalization stocks. These stocks are chosen based on specific quality characteristics and fundamental metrics determined by Gateway Investment Advisers, LLC. The selection process aims to ensure a focus on companies that exhibit strong financial health, stability, and the potential for sustainable growth, thereby aiming to secure stable and potentially rewarding investment opportunities for its shareholders.
The fund employs a distinctive approach by writing index call options as a complement to its stock investments. This strategy is designed to generate additional income for the fund, which can help to offset some of the risks inherent in equity investments and potentially enhance overall returns. By carefully selecting the options it writes, the fund aims to maintain a balanced exposure, taking into account the dual objectives of capital appreciation and income generation.