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Sound Income Strategies launches actively-managed income ETFs for retirees and those saving for retirement


Sound Income Strategies, a Registered Investment Advisory firm specialising in the active management of income-generating portfolios, specifically for retirees and those planning for retirement, has launched two actively managed, income Exchange-Traded Funds (ETFs) on the New York Stock Exchange (NYSE). 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. 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,” says David J Scranton, CFA, Founder, Sound Income Strategies. “As long-time specialists in income-generating savings and investment strategies, we focus on maximising 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 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-capitalisation companies.

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 analysing individual debt securities, which typically include US and foreign corporate bonds; securities issued by governments and their agencies, instrumentalities, or sponsored corporations, including supranational organisations; 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.

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