Strategy Shares Gold Enhanced Yield ETF·Financial Services

Strategy Shares Gold Enhanced Yield ETF offers gold exposure with a unique fixed-income and commodity basket component, targeting income and capital appreciation. GOLY uses leverage to achieve exposure to both gold/commodities and bonds, generating monthly distributions currently near 7% TTM. Unlike peers, GOLY does not use options writing; instead, it relies on bond income and capital gains, which changes the overall risk/reward.

Gold and silver have seen a monumental rally over the past few years.
GOLY aims to provide monthly distributions through a diversified portfolio of bonds, gold, and commodities. However, these payments may include a return of capital rather than net profits. Investments consist of USD-denominated corporate bonds and US Treasuries, maintaining investment-grade credit quality through quantitative metrics and fundamental analysis. Simultaneously, it hedges against inflation and currency risks via total return swaps on near-month gold futures. Lastly, it uses a long/short approach to energy, industrial metals, and precious metals commodities, capitalizing on market inefficiencies. Using leverage, the fund achieves 200% notional exposure, with 100% to bonds and 100% to gold and commodities. A portion of the strategy is executed through a Cayman Islands subsidiary, which manages swaps and collateral. Note that using leverage magnifies potential gains and losses, particularly in volatile markets. Before Feb 1, 2024, the fund traded under the ticker GLDB.
Financial Services
Asset Management
2021-05-18
0.62
Market Peers





