HNDL vs INCM

HNDLBStrategy Shares Nasdaq 7HANDL Index ETF

INCMAFranklin Income Focus ETF

In short

HNDL An income fund built backwards: rather than hunt high yielders, HNDL holds a basket of ETFs, adds 23% index leverage, and targets a 7% annual payout of NAV, paid monthly. Some of that cash can be return of capital, per the prospectus.

INCM A go-anywhere income hunt in ETF form: Franklin's managers roam across asset classes chasing current income, hold roughly 400 positions, charge 0.38%, and pay out monthly.

Stated mandate

HNDL The Fund seeks to track, before fees and expenses, the price and yield performance of the NASDAQ 7 HANDLTM Index.

INCM The fund seeks a high level of current income, with long-term capital appreciation as a secondary objective.

Why people hold it

• HNDL The payout is engineered, not scraped off the highest yielders: the index targets a total return able to support a 7% annual distribution rate on NAV, paid in monthly installments.sec.gov
• One ticker, two engines: a fund of roughly 19 ETFs, half a core of U.S. aggregate bonds and equities, half a Dorsey Wright Explore sleeve rotating across 12 asset categories.sec.gov
• Leverage is modest and spelled out: the index applies leverage equal to 23% of the total portfolio through a total return swap, not a daily-reset 2x or 3x structure.sec.gov
• A 2018 original in a crowded payout-target field, with the index rules and the monthly cadence unchanged since launch.sec.gov

• INCM Charges 0.38%, well under the typical fund in its multi-asset allocation group. More of the income stays with shareholders.
• Distributes monthly, matching the rhythm of actual bills. Current income is the stated primary objective, with capital appreciation secondary.
• Spreads the income job across roughly 400 positions instead of leaning on a short list of high yielders.
• Trades smoothly for a multi-billion-dollar fund, and rates as one of the stronger implementations in its allocation peer group.

Worth knowing

• HNDL At 0.94% with no fee waiver, HNDL sits above the category median on cost; index-built peers IYLD and INKM each run 0.50%.
• Paying a target 7% of NAV regardless of what markets deliver means weak stretches can be funded partly from capital. Holding NAV steady over time is the index's goal, not an assurance.sec.gov
• The swap sleeve cuts both ways: borrowing costs and counterparty exposure ride along, and the 23% leverage magnifies declines as well as gains.sec.gov

• INCM Actively managed with no declared index, so the asset mix and the payout reflect manager judgment rather than a published rulebook you can check against.
• The mandate targets a high level of current income, not a fixed dollar amount, so the monthly distribution moves with markets.
• Index-based allocation peers such as AOA and IRTR carry lower expense ratios. Here the fee buys active security selection instead of a set glide path.

Full HNDL profile⁠

Full INCM profile⁠