July Market Recap from HANDLS Indexes: A Ray of Sunshine in a Bleak Year

The graph and table above provide return data for major income-oriented asset categories for the month of July 2022. Returns for each asset category are based on the returns of the constituent(s) in the Nasdaq HANDLS™ Base Index representing that cate-gory. Also included are returns for the Nasdaq 5HANDL™ Index, the Nasdaq 7HANDL™ Index and the Nasdaq 10HANDL™ Index.

A Ray of Sunshine in an Otherwise Bleak Year

Markets shook off the 2022 doldrums in July, with every income-oriented asset category tracked by HANDLS In-dexes gaining positive returns. MLPs rebounded from a dismal June to return 12.7% for the month of July, bring-ing year-to-date return to 23.5%. With the Utilities category gaining 5.4% in July to bring its year-to-date returns to 5.0%, MLPs and Utilities are the only categories to have earned positive year-to-date returns through July.

Core equity was close behind MLPs, rallying 11.3% in July as investors bid up beaten-down growth stocks. By con-trast, the dividend equity category rallied 6.8%, but remains ahead of core equity for the year (-10.0% versus -18.0%).

High-yield bonds led all fixed-income categories, returning 6.6% for the month as yield-seeking investors bid down credit spreads. Core fixed income rallied as well, gaining 3.0% for the year to bring its year-to-date return to -8.0%.

With every one of its constituents earning positive returns, the Nasdaq 5HANDL Index returned 6.1% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, returned 7.9% in July while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index, gained 12.3%.

Since Inception Category Performance

The graph and table above provide return data for major income-oriented asset categories since inception of HANDLS Indexes (3/12/2009). Returns for each asset category are based on the returns of the constituent(s) in the Nasdaq HANDLS™ Base Index representing that category. Also included are returns for the Nasdaq 5HANDL™ Index, the Nasdaq 7HANDL™ Index and the Nasdaq 10HANDL™ Index. Inception dates for MLPs (1/2/2013), Build America Bonds (1/2/2010) and Active Fixed Income (1/2/2014)

In the Long-run, the Basket Always Wins.

In 1952, Harry Markowitz published his landmark essay entitled, “Portfolio Selection.” In the essay, Marko-witz demonstrated that a diversified investment portfolio exhibits less volatility than the sum of its individ-ual parts and offers investors an opportunity to earn greater risk-adjusted returns than they could other-wise earn through concentrated investments in specific securities or asset classes.

The Nasdaq HANDLS™ indexing solution uses the teachings of modern portfolio theory to deliver income-oriented investment solutions to investors. By building well-diversified, balanced portfolios of low-cost ETFs and using moderate amounts leverage to achieve enhanced returns, investors seeking income can minimize idiosyncratic risk posed by concentrated investments and earn higher risk-adjusted returns.

Important Disclosure. HANDLS Indexes receives compensation in connection with licensing its indices to third parties. Any returns or performance provided within are for illustrative purposes only and do not demonstrate actual performance. Past performance is not a guarantee of future investment results. It is not possible to invest directly in an index. Exposure to an asset class is available through investable instruments based on an index. HANDLS Indexes does not spon-sor, endorse, sell, promote or manage any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any index. There is no assurance that investment products based on an index will accurately track index performance or provide positive invest-ment returns. HANDLS Indexes is not an investment advisor, and HANDLS Indexes makes no representation regarding the advisability of investing in any such investment fund or other vehicle. A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associ-ated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by Indexes to buy, sell, or hold such security, nor is it considered to be investment advice. The information contained herein is intended for personal use only and should not be relied upon as the basis for the execution of a security trade. Investors are advised to consult with their broker or other financial representative to verify pricing information for any securities referenced herein. Nei-ther Indexes nor any of its direct or indirect third-party data suppliers or their affiliates shall have any liability for the accuracy or completeness of the infor-mation contained herein, nor for any lost profits, indirect, special or consequential damages. Either Indexes or its direct or indirect third-party data suppliers or their affiliates have exclusive proprietary rights in any information contained herein. The information contained herein may not be used for any unauthorized purpose or redistributed without prior written approval from HANDLS Indexes. Copyright © 2022 by HANDLS Indexes. All rights reserved.

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