FormulaFolios Tactical Income ETF (FFTI): Price and Financial Metrics ETF

FormulaFolios Tactical Income ETF (FFTI) ETF Bio

The investment objective of the FormulaFolios Income ETF targets income and invests in ETFs that target foreign and domestic fixed-income securities. It uses a model to rank five fixed-income classes based on yield spread and price momentum, selecting the top three classes to include in the portfolio. However, asset classes are automatically excluded if they do not have positive momentum. The chosen asset classes are represented in FFTI’s portfolio by ETFs selected for their low costs, low tracking error and high volume. High-yield U.S. debt and Treasuries are each limited to a weighting of 56.67% in the portfolio, while the U.S. aggregate bond space, U.S. investment-grade debt and international government bonds are each limited to 21.67% weightings. The prospectus notes that if more than two of the asset classes do not have positive price momentum, the fund will give more weight to short-term U.S. Treasuries.