| ARCA Exchange | US Country |
The fund primarily focuses on investing in dividend-paying U.S. large- and mid-cap equity securities. It aims to allocate at least 80% of its net assets, plus any funds borrowed for investment purposes, towards these financial instruments. These selected equity securities must either be incorporated within the United States or have their primary listing in the country. This strategic approach underlines the fund's commitment to generating income through dividends while potentially capitalizing on the growth of large- and mid-sized U.S. companies.
The core of the fund's investment strategy revolves around equity securities of large and mid-sized U.S. companies that pay dividends. These securities include but are not limited to common and preferred stocks, offering a blend of growth potential and income generation.
Part of the fund's portfolio may consist of convertible securities. These are types of financial instruments that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the holder. This provides a potential for capital appreciation along with income.
The fund may invest in rights and warrants as well. Rights are offers to existing shareholders to purchase additional shares at a discount, while warrants are similar to options, giving the holder the right but not the obligation to purchase shares at a specified price before the warrant expires. Both can offer leveraged exposure to the equity markets.
REITs are another investment avenue within the fund's strategy, providing exposure to real estate markets through companies that own, operate, or finance income-producing real estate across a range of property sectors. Investing in REITs offers the benefits of real estate investment along with liquidity and potential income through dividends.