PRMAF ETF — Holdings & Analysis

With a relatively high expense ratio of 0.99%, the fund differentiates itself by focusing on value companies with strong fundamentals and utilizing derivatives to enhance returns and reduce volatility. Past performance does not guarantee future results.

Purpose Multi-Asset Income Fund (PRMAF) ETF — Price, Holdings & Analysis

The Purpose Multi-Asset Income Fund (PRMAF) is an actively managed ETF with $0.05 billion in assets under management. Launched in April 2023 by Purpose Investments, PRMAF aims for global exposure to income-producing securities, including equities, REITs, and fixed income. With a relatively high expense ratio of 0.99%, the fund differentiates itself by focusing on value companies with strong fundamentals and utilizing derivatives to enhance returns and reduce volatility. Past performance does not guarantee future results.

ETF Overview

The fund aims for a global exposure to income producing securities. The actively managed portfolio may include equities, common and preferred shares, real estate investment trusts (REITs), convertibles, investment grade and high yield fixed income securities, floating rate debts, asset-backed securities and mortgage-backed securities. In selecting equity and fixed income securities, the portfolio manager focuses on value companies with strong fundamental factors such as ROE sustainability, balance sheet strength, earnings estimates, ability to pay dividends, management strength, securitys features and current price compared to it estimated long-term value, and credit standing. The fund can also invest in derivatives such as options, forwards, futures and swaps to receive premium income, reduce overall portfolio volatility and enhance the portfolios total return. PINC can invest up to 100% in foreign securities.

PRMAF seeks to provide investors with a diversified portfolio of income-generating assets across the globe. The fund's strategy involves active management, where the portfolio manager selects securities based on fundamental factors such as ROE sustainability, balance sheet strength, earnings estimates, dividend-paying ability, and management strength. The fund invests in a mix of equities, common and preferred shares, REITs, convertibles, and fixed income securities, including investment grade and high yield bonds. It also utilizes derivatives like options, forwards, futures, and swaps to generate income, manage volatility, and enhance total return. PRMAF has the flexibility to invest up to 100% of its assets in foreign securities, providing broad global exposure. This approach distinguishes PRMAF from passively managed ETFs that simply track an index. The active management and focus on value stocks with strong fundamentals are key differentiators for investors seeking income and potential capital appreciation. Past performance does not guarantee future results.

Risk Metrics

PRMAF's active management and diverse asset allocation strategy aim to mitigate risk, but several factors should be considered. The fund's 0.99% expense ratio is relatively high, which can create a drag on performance, especially in lower-return environments. While diversification across asset classes and geographies helps reduce concentration risk, the fund's smaller AUM of $0.05 billion could present liquidity risks. The use of derivatives, while intended to reduce volatility and enhance returns, introduces another layer of complexity and potential risk. Furthermore, the fund's focus on value stocks means its performance is tied to the performance of that specific investment style, which may underperform during growth-oriented market cycles. Investors should carefully evaluate their risk tolerance and investment objectives before investing in PRMAF. Past performance does not guarantee future results.

Expense Ratio

0.99%

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State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

Questions & Answers

What is PRMAF and what does it track?

The Purpose Multi-Asset Income Fund (PRMAF) is an actively managed ETF that seeks to provide global exposure to income-producing securities.

Unlike passive ETFs that track a specific index, PRMAF's portfolio manager actively selects investments based on fundamental factors like ROE sustainability and balance sheet strength.

What is the expense ratio for PRMAF?

The expense ratio for the Purpose Multi-Asset Income Fund (PRMAF) is 0.99%. This means that for every $1000 invested in the fund, $9.90 is used to cover the fund's operating expenses.

While this provides active management and a diversified portfolio, the 0.99% expense ratio is higher than the category average for similar equity ETFs.

What are the top holdings in PRMAF?

As an actively managed fund, PRMAF's holdings are subject to change. While specific holdings data requires ongoing monitoring of fund disclosures, the fund's investment strategy focuses on a mix of equities, REITs, and fixed income securities.

Is PRMAF a good long-term investment?

Whether PRMAF is a suitable long-term investment depends on an individual investor's specific financial goals, risk tolerance, and investment horizon. The fund's active management and diversified approach may appeal to investors seeking income and capital appreciation.

However, the relatively high expense ratio of 0.99% should be considered, as it can impact long-term returns.

How does PRMAF compare to similar ETFs?

PRMAF distinguishes itself from similar ETFs through its active management and focus on value companies with strong fundamentals. While many multi-asset income ETFs exist, PRMAF's approach of using derivatives to enhance returns and reduce volatility sets it apart.

Does PRMAF pay dividends?

As an income-focused ETF, PRMAF aims to provide regular distributions to its investors. The fund invests in income-producing securities such as dividend-paying stocks, REITs, and fixed income instruments.

The actual dividend yield and payout frequency may vary depending on market conditions and the fund's investment decisions.