The Power Floating Rate Index Fund (FLOAX, FLOCX, FLOTX) tracks the W.E. Donoghue Floating Rate Index (PWRFLXTR), a rules-based index calculated by Standard and Poor’s Custom Indexes. The index will direct investments into a selection of floating rate mutual funds/ ETFs and High Yield Bond ETFs, when in a bullish position. When in a defensive position, the index will be invested in the S&P Year U.S. Treasury Bond 1-3 Year Index, thus the portfolio will be invested in short-term Treasury ETFs to obtain exposure. The index employs a short and intermediate term tactical overlay to determine whether to be in a bullish or defensive posture. Each tactical overlay will trigger 50% of the index into a defensive position, should market conditions warrant. When the index is in a 100% bullish posture, the fund will initiate 1.2x leverage within the fund. When any defensive position is taken in the index, the leverage will be removed. When in a bullish posture, the index and portfolio will rebalance holdings quarterly and re-constitute annually.
Where to Purchase
The Power Dividend Index Fund will be available to purchase through the following:
- Charles Schwab
- Fidelity Investments
- National Financial Services
- TD Ameritrade
For the latest availability call: 1 (800) 642-4276.