Preferred Stock/Convertible Bonds ETFs that offer exposure to both preferred stock and convertible bonds, which are considered hybrid debt/equity instruments. Preferred stocks are also sometimes considered fixed income because of their stable yields and preferential treatment in the case of bankruptcy. In contrast, convertible bonds are fixed income securities that hold an option to be converted into equity.
Bank Loans ETFs are composed of bank loan bonds, which are loans made by banks to other corporations. Since the credit quality of the loans vary considerably, these funds make fairly risky investments.
Mortgage-Backed ETFs invest in mortgage-backed securities. These funds allow investors to invest in bundles of mortgage loans from banks or mortgage companies.
This motif is for those who wish to convert their portfolio to an income stream. Usually this is done in retirement to create a secondary income stream. This motif can also be used for a DRIP strategy.
TIPS ETFs are composed of TIPS (Treasury Inflation-Protected Securities). These bonds help investors fend against inflation, since they are linked to cost-of-living increases.
This Motif is designed for those who wish to use a dividend reinvestment plan (DRIP). The Motif uses ETFs to achieve its goal. An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
Target Maturity Date Junk Bond ETFs are composed of junk bonds with specific maturity dates. These bonds are below investment grade and thus carry very high levels of risk.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
Investing in securities involves risks, you should be aware of prior to making an investment decision, including the possible loss of principal. An investment in individual stocks, or a collection of stocks focused on a particular theme or idea, such as a motif, may be subject to increased risk of price fluctuation over more diversified holdings due to adverse developments which can affect a particular industry or sector. Investments in ETFs can include those with a narrow or targeted investment strategy and can be subject to similar sector risks than more broadly diversified investments. This website and all entities associated with this website, makes no representation regarding the suitability of a particular investment or investment strategy. You are responsible for all investment decisions you make including
* Volatility rate is subject to change without notice. Higher the volatility ratings, higher the probability of wild daily swings, and vise versa.
** Return Since Creation numbers are accurate as of 4/1/2019, using Motif's numbers. The RTN numbers will be updated once a month and are subject to change without notice. System response time and account access times may vary due to a variety of factors, including trading volumes and market.