OLNEY, MD--(Marketwired - Mar 10, 2014) - Arrow Investment Advisors, LLC -- a boutique asset management firm specializing in alternative investments and tactical portfolio solutions -- is gaining momentum for its ArrowShares exchange traded fund (ETF) brand. Today the firm announced that its flagship ETF, the Arrow Dow Jones Global Yield ETF (
"Despite an uptick in 2013, interest rates remain at historical lows and income-oriented investors continue to seek out competitive yield," says Joseph Barrato, CEO and Director of Investment Strategy at Arrow. "At Arrow, we believe in a global approach to yield that incorporates both traditional and alternative sources of income, along with exposure to growth opportunities. GYLD may offer a compelling alternative for those who wish to generate yield, without necessarily sacrificing returns."
Barrato adds that GYLD may be especially attractive to investors concerned about interest rate risk. "Investors are beginning to anticipate the impact of a rising interest rate environment and declining bond prices," says Barrato. "GYLD's equally-weighted exposure to multiple asset classes may complement traditional fixed income investments that tend to be more vulnerable to rising rates."
As of the February 18, 2014 distribution, GYLD has delivered a total return of 10.28% since inception, with a 12-month yield of 6.03% and 30-Day SEC yield of 6.29%.1
| As of 2/18/2014 | YTD | 1-Month | 3-Month | 1-Year | Inception (5/8/2012) | |||||
| GYLD (@NAV) | 1.16% | 0.97% | 0.91% | 4.80% | 10.28% | |||||
| DJ-GYLD Index | 1.20% | 0.89% | 1.41% | 5.71% | 10.95% |
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. ETFs are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage fees will reduce returns. Index returns assume reinvestment of distributions, but do not include fees or expenses. Indexes are generally not available for direct investment.
GYLD provides diversified, multi-asset global yield and growth exposure to Global Equities, Global Alternatives (including Master Limited Partnerships), Global Corporate Debt and Global Sovereign Debt through its benchmark -- the Dow Jones Global Composite Yield Index. To reduce concentration risk, the index is equally weighted among each of these five assets, and each asset class is also equally weighted among 30 holdings to total 150 securities. To ensure optimum investability, the index methodology follows a strict screening process with quarterly rebalancing.
"We are pleased that we have been able to meet what we believe is a real demand for competitive yield with Arrow's foray into the ETF business," says Barrato. "We have achieved both passive and active SEC exemptive relief, along with self-indexing capabilities, and look forward to building on GYLD's success by bringing new strategies to market later this year."
About Arrow Investment Advisors: Arrow Investment Advisors, LLC, the advisor to ArrowShares, is an investment management firm dedicated to providing investment solutions, education and research to financial intermediaries. Arrow identifies and develops investment products that seek to enhance returns and mitigate risk. The firm is committed to delivering superior performance while providing the highest level of customer service. To learn more, visit www.ArrowShares.com.
1Total return includes price appreciation and distributions based on the fund's NAV since inception (5/8/2012). ETFs are bought and sold at market price (not NAV) therefore individual returns may vary depending on time of purchase, market price, and brokerage fees. 12-month yield is based on the cumulative monthly distributions over the previous year. SEC yield is a standardized calculation based on the holdings in the previous 30-day period. Distributions are generally made monthly and will vary depending on holdings and market fluctuation.
Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risks, including the potential for loss of principal. An investor should consider the fund's investment objective, charges, expenses and risks carefully before investing. This and other information about the fund is contained in the fund's prospectus, which can be obtained by calling 1-877-277-6933. Distributed by Northern Lights Distributors, LLC (member FINRA). Northern Lights Distributors, LLC is an unaffiliated entity from Arrow Investment Advisors, LLC.
Performance as of most recent quarter-end1:
| As of 12/31/2013 | YTD | 1-Month | 3-Month | 1-Year | Inception (5/8/2012) | |||||
| GYLD (NAV) | 8.05% | 0.40% | 2.75% | 8.05% | 10.39% | |||||
| DJ-GYLD Index | 9.07% | 0.48% | 3.00% | 9.07% | 11.09% |
For more recent performance, visit www.arrowshares.com or call (877) 277-6933.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. ETFs are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage fees will reduce returns. Index returns assume reinvestment of distributions, but do not include fees or expenses. Indexes are generally not available for direct investment.
The Arrow Dow Jones Global Yield ETF may not be suitable for all investors. The fund is new and has a limited performance record. The fund may not replicate the exact performance of the benchmark because of fees, expenses, trading costs and portfolio tracking error. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions, which will reduce returns. Fixed income securities may be subject to risks associated with interest rate fluctuations. International investments may involve additional risks, including, but not limited to, currency fluctuation, differences in generally accepted accounting principles, economic differences and political instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Changes in laws, domestically or abroad, could result in the inability of the fund to operate as described in the prospectus. Narrowly focused investments may be subject to higher volatility. High-yielding stocks and non-investment grade bonds are often higher-risk investments, which may be subject to greater volatility due to such factors as corporate developments, interest rate sensitivity, negative perceptions whether factual or not, and adverse economic conditions. Master Limited Partnerships (MLPs) and Royalty Investment Trusts (RITs) have specific risks, including, among others, limited voting rights, energy demand, limited call rights of the general partner and changes in tax laws. In order to qualify for the tax treatment of a regulated investment company (RIC), the fund's exposure to MLPs cannot exceed 25%, or the fund may be subject to corporate tax status, which would reduce the overall performance. Investments in securities of real estate companies involve risks, including, among others, adverse changes in national, state or local real estate conditions domestically or abroad; obsolescence of properties; changes in the availability, cost and terms of mortgage funds; and the impact of changes in environmental or tax laws.
The Dow Jones Global Composite Yield Indexsm is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Arrow Investment Advisors, LLC ("AIA"). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); "Dow Jones", Dow Jones Global Composite Yield Indexsm and "Dow Jones Indexes" are trademarks of the Dow Jones Trademark Holdings LLC; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AIA. AIA's affiliate ArrowShares is the exchange traded product line of Arrow Funds. These Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones Global Composite Yield Indexsm.
0747-NLD-3/3/2014