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Sound Income Strategies Launches Actively-Managed, Income Exchange-Traded Funds for Retirees and Those Saving for Retirement

Sound Income Strategies
·6-min read

FORT LAUDERDALE, Jan. 05, 2021 (GLOBE NEWSWIRE) -- – Sound Income Strategies, a Registered Investment Advisory firm specializing in the active management of income-generating portfolios, specifically for retirees and those planning for retirement, today announced the launch of two actively managed, income Exchange-Traded Funds (ETFs) on the New York Stock Exchange (NYSE) on December 31, 2020. The Sound Equity Income ETF (SDEI) and Sound Enhanced Fixed Income ETF (SDEF) seek to generate income at a time when rates are at ultra-low levels and Baby Boomers are unprepared for retirement. 1 With these ETFs, Sound Income Strategies’ income-generating insights provided to their clients over the past 20 years are now more broadly available.

“When it comes to planning and saving for retirement, it’s all about investing for income. The new ETFs were created specifically for retirees and those approaching retirement who need income from their investments,” said David J. Scranton, CFA, Founder, Sound Income Strategies. “As long-time specialists in income-generating savings and investment strategies, we focus on maximizing the value of investors’ income portfolios and help them build retirement plans that seek to deliver dependable income first and foremost, with growth potential as a secondary consideration.”

The new ETFs are:

Sound Equity Income ETF (SDEI): The Sound Equity Income ETF is actively managed, and its primary objective is to generate current income via a dividend yield that is targeted to be at least two times that of the S&P 500 Index. SDEI’s secondary objective is to capture long-term capital appreciation. SDEI seeks to achieve its investment objectives by investing in common stock issued by dividend-paying, mid- and large-capitalization companies.

Sound Enhanced Fixed Income ETF (SDEF): The Sound Enhanced Fixed Income ETF is an actively managed ETF that seeks current income while providing the opportunity for capital appreciation by investing in fixed income securities. The ETF invests in a combination of investment grade and below investment grade (often referred to as “high yield” or “junk” bonds) debt securities. Typically, the ETF will have an approximate equal weighting of investment grade and high yield debt securities; however, the portfolio weighting will be adjusted from time to time based on the sub-adviser’s assessment.

Sound Income Strategies uses a fundamental, “bottom-up” approach to analyzing individual debt securities, which typically include U.S. and foreign corporate bonds; securities issued by governments and their agencies, instrumentalities, or sponsored corporations, including supranational organizations; preferred securities; and ETFs that invest in bonds, sovereign debt, and private placement debt securities. The ETF may also invest in shares of business development companies (“BDCs”) and real estate investment trusts (“REITs”).

David Scranton partnered with the team at Tidal ETF Services to bring the Sound ETFs to market.

ABOUT SOUND INCOME STRATEGIES

Sound Income Strategies is a Registered Investment Advisory firm specializing in the active management of income-generating portfolios. It was founded by David J. Scranton (CLU, ChFC, CFP®, CFA, MSFS), who has been recognized during his 30 years in the industry as an advisor who is particularly protective of his clients’ assets. For the past 20 years, he has specialized in the universe of income-generating savings and investment strategies. Sound Income Strategies’ vision is to change the face of retirement for Baby Boomers. Their income-generating strategies are available to the public through Sound Income Strategies’ easy-to-trade and low-cost exchange-traded funds (ETFs). These ETFs were created specifically for retirees and those approaching retirement who want income-producing investment flow. For more information, visit soundetfs.com.

ABOUT TIDAL ETF SERVICES

Formed by ETF industry pioneers and thought leaders, Tidal sets out to disrupt the way ETFs have historically been developed, launched, marketed and sold. With a transparent, partnership approach, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. As advocates for ETF innovation, Tidal helps institutions and organizations launch the most interesting and viable ETFs available today. For more information, visit tidaletfservices.com.

MEDIA CONTACT:

Christine Hudacko
chudacko@buttonwoodpr.com
Phone: 415-999-1226

DISCLOSURES

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by calling (833) 916-9056 or visiting www.soundetfs.com. Please read the prospectus carefully before you invest.

Investing involves risk, including the potential loss of principal. There is no guarantee that the Funds investment strategy will be successful. Shares may trade at a premium or discount to their NAV in the secondary market. The Funds are new and have a limited operating history. The Funds have a limited number of financial institutions that are authorized to purchase and redeem shares directly from the Fund; and there may be a limited number of market makers or other liquidity providers in the marketplace.

Since the Funds are actively managed they do not seek to replicate the performance of a specified index. The Funds may frequently trade all or a significant portion of their portfolio; and have higher portfolio turnover than funds that do seek to replicate the performance of an index.

SDEI-specific risks:
The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies.
The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund.

SDEF-specific risks:
Securities rated below investment grade are often referred to as high yield securities or “junk bonds.” Investments in lower rated corporate debt securities typically entail greater price volatility and principal and income risk. High yield securities may be more susceptible to real or perceived adverse economic and competitive industry conditions than investment grade securities.
The Fund may, at times, hold illiquid securities. The Fund could lose money if it is unable to dispose of an illiquid investment at a time or price that is most beneficial to the Fund.
The Fund’s investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally declines. Securities with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund.

The Funds are distributed by Foreside Fund Services, LLC.

Investment Advisory Services offered through Sound Income Strategies, LLC, an SEC Registered Investment Advisory Firm.



1 Source: Insured Retirement Institute. “Boomer Expectations for Retirement 2019”, April 2019. https://www.myirionline.org/docs/default-source/default-document-library/iri_babyboomers_whitepaper_2019_final.pdf?sfvrsn=0