ETF Strategies
Prospera Income ETF (THRV)
The Prospera Income ETF (THRV) is a flexible, “go anywhere” actively managed multi-asset income strategy that seeks to make monthly distributions and generate an attractive current level of income relative to prevailing intermediate-term U.S Treasury yields. Our strategy anchors its portfolio construction in a core allocation of fixed income ETFs. The intention is to provide diversification, daily liquidity, and broad exposure across multiple maturities and credit qualities. Around this foundation, the fund tactically allocates to closed-end funds (CEFs), dividend-paying equities, preferred shares, real assets, and commodities each carefully selected to enhance yield, diversify risk, and add resilience against inflationary pressures.
Additionally , the strategy maintains a systematic derivatives overlay intended to help manage downside risk, with initial entry positions ranging from 0.05-0.25% of the portfolio in put options underlying broad equity index’s and individual ETFs. This hedge is scalable up to 10% in periods of heightened volatility to help cushion drawdowns and preserve capital.
The derivatives overlay is intended to help manage downside risk; there is no assurance it will be effective or reduce losses. Derivatives involve additional risks, including leverage, imperfect correlation, liquidity/pricing risk, counterparty/clearing risk, and the risk that options may expire worthless. The use of derivatives may increase volatility and/or detract from performance.
For those seeking a professional, proactive investment for higher yield, the Prospera Income ETF could be a unique solution in actively managed portfolios.
Securities offered through Vigilant Distributors, LLC, member of FINRA/ SIPC.
Please see Prospectus and SAI for full list of risks and disclosures.
Strategy at a Glance
Income With Active Risk Management
THRV is an actively managed income ETF that anchors 40–70% in fixed-income ETFs. Around that core, we tactically add closed-end funds (CEFs), dividend-paying equities, preferreds, and real-asset exposures to broaden yield sources and reduce concentration risk. A systematic derivatives overlay is maintained in put options underlying broad market indices and individual ETFs and can scale up to 10% in stressed regimes to help cushion drawdowns.
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40-70% ETFs
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CEFs, Dividend-Paying Equities, Preferreds, Real Assets
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Initial positions of 0.05-0.25% of the portfolio will be systematically maintained in put options with the ability to scale → up to 10% of the portfolio may be allocated to our derivatives overlay during periods of heightened volatility and market stress
The derivatives overlay is intended to help manage downside risk; there is no assurance it will be effective or reduce losses. Derivatives involve additional risks, including leverage, imperfect correlation, liquidity/pricing risk, counterparty/clearing risk, and the risk that options may expire worthless. The use of derivatives may increase volatility and/or detract from performance.
Fund Basics
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“Go anywhere” Actively Managed Income ETF
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Utilizes Fixed Income ETFs as a Core holding intending to provide diversification, daily liquidity, and broad exposure across multiple maturities and credit qualities
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Investment team has flexibility to actively trade across asset classes & sectors to enhance distribution yield and diversify risk exposures.
Fund Strategy
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Seeks to generate an attractive current level of income relative to prevailing intermediate-term U.S Treasury yields
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Core fixed income holdings provide broad access to a multiple maturities, credit quality, sectors and geographies
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Portfolio construction targets low correlation to broader equity market indices, diversification in risk and concentration from any one sector
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Fixed Income ETFs
CEFs
Dividend Paying Equities
ADRs/International
Real Assets / Commodities
Fund Characteristics
40-70%
At the Core: Invested in Fixed Income ETFs
Remainder of the portfolio is tactically allocated to Closed-End Funds (CEFs), Dividend paying equities, & other income generating securities.
Risk Management: The strategy maintains a systematic derivatives overlay intended to help manage downside risk, with initial entry positions ranging from 0.05-0.25% of the portfolio in put options underlying broad equity index’s and individual ETFs. This hedge is scalable up to 10% in periods of heightened volatility to help cushion drawdowns and preserve capital.
The derivatives overlay is intended to help manage downside risk; there is no assurance it will be effective or reduce losses. Derivatives involve additional risks, including leverage, imperfect correlation, liquidity/pricing risk, counterparty/clearing risk, and the risk that options may expire worthless. The use of derivatives may increase volatility and/or detract from performance.
Beyond The Core Allocation
Closed End Funds
Selective CEF exposure for specialized income, discount capture, active credit, and structural yield managed within strict risk/position limits and liquidity screens. CEFs can provide access to differentiated income-oriented exposures, but they also involve additional risks (including leverage, discounts/premiums to NAV, and liquidity considerations) and require careful diligence on structure and underlying holdings.
Preferred Securities
Preferred Equities generally have a yield and risk profile that sit between bonds and common equity. We look for Preferred Equity ETFs that have daily liquidity, attractive issuers, and diversified holdings. This sleeve may be used to diversify income sources and manage portfolio positioning in environments where interest-rate conditions, credit spreads, or equity volatility are changing.
Dividend-Paying Equities
Screened for quality factors such as low volatility, balance sheet gearing, dividend growth, and payout discipline for complementary equity-linked income. We generally seek to avoid concentrated exposure to high-beta equities and may emphasize areas where yield appears more strongly supported by company fundamentals, subject to prevailing macro and interest-rate conditions.
Real Assets and Commodities
Selective, income-oriented real assets (e.g., pipelines/infrastructure, royalty trusts) for inflation sensitivity and diversified cash flows. The Fund generally seeks to avoid large, concentrated directional commodity exposures and instead may emphasize real-asset investments where cash-flow characteristics and valuations are considered alongside liquidity and risk. Commodity- and real-asset exposures can be volatile and may be affected by interest rates, geopolitical developments, and commodity price fluctuations.
Systematic Derivatives Overlay
The Fund may use a systematic derivatives overlay help manage downside risk and adjust exposure during periods of elevated market volatility. Under normal market conditions, the overlay is typically modest (ranging between 0.05-0.25% of portfolio value) and may be increased potentially up to 10% based on the Adviser’s risk signals and prevailing market conditions. Instruments may include equity index or ETF put options and, in certain circumstances, volatility-linked options (such as VIX-related call options). There is no assurance the overlay will be effective or reduce losses, and it may limit gains or detract from performance
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The Fund may maintain a modest, systematic derivatives overlay as part of its risk management process. Establishing hedges before volatility rises can sometimes improve implementation flexibility and pricing, but there is no assurance the overlay will be effective or reduce losses, and it may limit gains or detract from performance.
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The derivatives overlay may be increased when the Adviser’s systematic risk signals indicate elevated market stress such as rising volatility, widening credit spreads, or deteriorating liquidity conditions. Position sizing may also consider option pricing and market structure.
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Under normal market conditions, the derivatives overlay is typically modest (approximately 0.05-0.25% of portfolio value), though actual positioning and costs may vary. Overlay sizing may be adjusted based on the Adviser’s systematic risk signals and prevailing option pricing. The overlay may limit gains or detract from performance.
The derivatives overlay is intended to help manage downside risk; there is no assurance it will be effective or reduce losses. Derivatives involve additional risks, including leverage, imperfect correlation, liquidity/pricing risk, counterparty/clearing risk, and the risk that options may expire worthless. The use of derivatives may increase volatility and/or detract from performance.
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Quantitative and Fundamental screens for yield, income durability, liquidity and factor balance across all asset classes
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Top down allocation bands around the core, we build the portfolio across the asset mix we find attractive from a yield and risk perspective and then optimize our portfolio for risk.
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The portfolio restricts features such as volatility, beta, maximum drawdown and concentration. These factors are monitored and re-balanced on a weekly basis.
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Our strategy is actively managed, we are not a set and forget passive portfolio and we opportunistically trade around our positions or reduce position weightings daily. This approach enhances our ability to generate yield sustainably.
Our Process
Research. Construction. Risk. Trading.
Disclosures
Our Vision for THRV ETF
THRV is pronounced “thrive” – and the fund is built around that core concept, meaning:
Monthly Distributions - seeking to make monthly distributions with an attractive current income relative to prevailing intermediate-term U.S Treasury yields
Active Risk Management - portfolio risk is managed through diversification, liquidity management, and a systematic derivatives overlay intended to help manage downside risk
Diversified Income Sources - a multi-asset approach intended to diversify income drivers across sectors, regions, and asset classes
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Seeks to generate an attractive current level of income relative to prevailing intermediate-term U.S Treasury yields
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The fund holds a broad mix of fixed income ETFs, dividend paying equities, US Treasuries, ADRs, CEFs and other income-producing assets, helping to reduce concentration risk and enhance yield potential
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Systematic derivatives overlay typically ranging from (0.05%-0.25%) of the portfolio in equity index or ETF puts. In times of elevated volatility or market stress, the overlay may be increased potentially up to 10% of the portfolio in hedging instruments like put options on equity indices and ETFs or call options on volatility instruments like the VIX.
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THRV's management has the flexibility to shift across asset classes and sectors in response to changing market conditions, seeking to pursue income and total return while actively managing risk.
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Managed by a seasoned team with over 24 years of experience in this strategy across multiple market cycles, providing active portfolio and risk management.
In one strategic package, THRV delivers a unique opportunity for investors seeking income, diversification and active management.
Securities offered through Vigilant Distributors, LLC, member of FINRA/ SIPC.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund involves a high degree of risk, including the potential loss of the entire investment. The Fund is subject to the risks of its underlying funds in addition to general economic and market conditions. The Fund and its service providers are subject to operational and cybersecurity risks. Past performance does not guarantee future results.
The Fund may use a systematic derivatives overlay implemented using models and quantitative signals developed by the Adviser. The overlay is intended to help manage downside risk; there is no assurance it will be effective or reduce losses, and it may limit gains or detract from performance. Derivatives (including index or ETF put options and VIX-related options) involve additional risks, including leverage, imperfect correlation, liquidity and pricing risk, counterparty/clearing risk, and the risk that options may expire worthless. The use of derivatives may increase volatility and costs.
The Fund seeks to make monthly distributions; distributions are not guaranteed and may change. Distributions may include income, capital gains and/or return of capital. Diversification does not guarantee protection against loss.
ETFs are subject to market risk, including the loss of principal.
Before investing, carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other important information is contained in the Fund’s Prospectus. Please read the prospectus carefully before investing.
Securities offered through Vigilant Distributors, LLC, member of FINRA/ SIPC.
This advertisement does not constitute an offer to sell, nor a solicitation of an offer to buy the securities described herein.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE ON BOTH.