Displaying items by tag: income

Demand for derivative income ETFs is unlikely to slow anytime soon, as these funds continue to provide consistent income and equity exposure amid a cloudy economic backdrop. 

The Federal Reserve’s evolving rate-cut path has also complicated duration positioning in fixed income portfolios, making alternative income strategies more attractive. The Calamos Autocallable Income ETF (CAIE) stands out for its innovative structure, which ladders autocallable yield notes linked to the MerQube US Large-Cap Vol. Advantage Index. 

As long as the reference index stays above the -40% barrier, CAIE generates monthly income, offering resilience even in uneven markets. With a 14.36% distribution rate as of September 30, 2025, CAIE might be a derivative income strategies that could deliver strong yields while maintaining disciplined risk management.

Finsum: With uncertainty surrounding the U.S. outlook, from potential recession to stagflation, the downside protection these ETFs offer remains highly valuable.

After the Federal Reserve’s first rate cut of the year, investors wonder how they can better position portfolios in a changing bond market. Thornburg’s Christian Hoffmann and VettaFi’s Todd Rosenbluth noted that while the bond market initially reacted positively, much of the impact was already priced in, and expectations for further cuts are stronger than anticipated. 

Hoffmann emphasized that the market is at an inflection point driven by both economic data and potential changes in the Fed’s composition under political pressure. He argued investors should remain overweight duration and prepare for the possibility of a more dovish Fed with tools such as yield curve control. 

Against this backdrop, Hoffmann highlighted the role of active management, pointing to Thornburg’s Core Plus Bond ETF (TPLS) for flexible core exposure and its Multi-Sector Bond ETF (TMB) for income diversification. 

Finsum: Active funds could provide solutions in an uncertain rate environment, echoing the adage: “Don’t fight the Fed.”

After bottoming in April, the stock market has staged an impressive rebound, but Stifel strategist Barry Bannister warns the rally may not last due to stretched valuations. He predicts the S&P 500 could fall as much as 15% to 5,500 but advises investors to stay in the market with a more defensive stance. 

Bannister highlights high-yield dividend stocks as a classic hedge, offering steady income and stability in uncertain conditions. Ellington Financial stands out with an 11.5% yield supported by strong earnings and diversified mortgage-backed investments. 

Meanwhile, Dorian LPG, a global liquefied petroleum gas carrier, offers an 8% yield with analyst support despite recent earnings volatility. 

Finsum: Dividend stocks exemplify how income-focused strategies can help investors weather potential downturns while still capturing meaningful returns.

The Nationwide Strategic Income Fund (NWXHX) has surpassed $1 billion in assets under management, reflecting strong investor demand and consistent outperformance. Since its 2015 inception, the fund has averaged a 6.07% annual return, 2% higher than its peer group, and earned a 5-star Morningstar rating. 

Its flexible, benchmark-agnostic strategy allows the fund to adapt to changing markets, guided by a seasoned management team with over a century of combined experience. The fund invests across fixed income sectors and can serve as a core or complementary bond holding. 

Following Amundi US’s merger with Victory Capital, the fund was renamed in June 2025 but retained its structure, management, and investment approach. As its profile rises, Nationwide emphasizes institutional-level oversight and manager selection to deliver long-term value.

Finsum: Strategic income invests across fixed income sectors and can serve as a core or complementary bond holding.

Annuities, once sidelined as overly complex or narrowly useful, are now experiencing a surge in demand as investors prioritize stability, protection, and predictable income in a volatile economic landscape. This shift is driven by pre-retirees and retirees rethinking traditional equity-focused strategies and seeking solutions that mitigate risks like sequence-of-returns. 

Fixed and fixed indexed annuities, in particular, offer competitive yields, downside protection, and guaranteed income, features especially appealing to mass-affluent households with limited pension coverage. 

The Great Wealth Transfer is also fueling interest, as boomers explore annuities not just for income but for legacy planning as well. Meanwhile, advances in digital tools and platforms have made annuities more transparent, accessible, and easier to incorporate into holistic financial plans. 

Finsum: Even as interest rates fluctuate, annuities are expected to remain a core solution for those seeking long-term financial confidence over short-term market gains.