Struggling Through the Fall Season: October 2023 HANDLS Monthly Income Report

The graph and table above provide return data for major income-oriented asset categories for the month of October 2023 and YTD 2023. 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.

A Struggle Through October

Securities markets continued to struggle in October in the face of rising interest rates and concerns about whether the Federal Reserve might continue its monetary tightening policy. The Core Large Cap Equity category lost 2.1% while the Core Fixed Income category fell 1.5% for the month.

The only category in the Nasdaq Dorsey Wright Explore portion of HANDLS Indexes to earn positive returns in October were Utilities, which shook off a disastrous first three quarters to begin the fourth quarter with 0.9% return. Other than MLPs (-0.6%) and High Yield Bonds (-0.9), every income-oriented category lost more than 100 basis points, with the Preferred Securities category the biggest laggard (-5.3%).

The Nasdaq 5HANDL Index returned -1.8% for the month. The Nasdaq 7 HANDL Index, the 1.3x leveraged version of the index, returned -2.5% in September while the Nasdaq 10 HANDL Index, the 2.0x leveraged version of the index, delivered a -4.2% return.

Despite three straight months of declines, the Core Large Cap Equity remained comfortably in the black in 2023, delivering a 23.4% return on a year-to-date basis and comfortably outperforming every other category in HANDLS Indexes. The Core Fixed Income Category continued to struggle with the impact of rising interest rates, shedding 2.7% in the first 10 months of 2023.

For the income-oriented categories that make up the Nasdaq Dorsey Wright Explore portion of HANDLS Indexes, MLPs continued to lead all such categories with a 17.3% year-to-date return. While Utilities enjoyed a positive month in October, the category continued to lag the year-to-date performance of the next worst performing category by nearly 1,000 basis points and remained down 14.3% in 2023.

On a year-to-date basis, the Nasdaq 5HANDL Index was up 2.0% through the end of October, versus returns of 1.2% and -0.8% for the Nasdaq 7 HANDL Index and Nasdaq 10 HANDL Index, respectively.

*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)

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 sponsor, 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 investment 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 associated 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. Neither 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 information 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 © 2023 by HANDLS Indexes. All rights reserved.

Disclosure: Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2023. Nasdaq, Inc. All Rights Reserved

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Dave Cohen is Cofounder of Bryant Avenue Ventures, an index provider which is implemented in a targeted distribution strategy at Strategy Shares. He previously served as Managing Director of Product Development at Guggenheim Investments. Dave is a product development executive with more than 20 years of experience creating successful financial products across a variety of asset classes and investment vehicles.

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