ILS

📎 Investment Objective

The Brookmont Catastrophic Bond ETF (ILS) seeks to provide exposure to a portfolio of catastrophe bonds, which are fixed-income securities whose coupons and/or principal are linked to the occurrence of specific catastrophic events.

✨ Key Features

• Exposure to the catastrophe bond market, which can provide diversification benefits to a traditional investment portfolio
• Potential for income generation from the coupon payments of the underlying catastrophe bonds
• Actively managed portfolio to navigate the complexities of the catastrophe bond market
• Low correlation to traditional asset classes, which may help reduce overall portfolio risk

⚠️ Primary Risks

• Catastrophic event risk: The value of the ETF's holdings may decline if the specific catastrophic events covered by the underlying bonds occur
• Liquidity risk: The catastrophe bond market can be less liquid than traditional fixed-income markets, which may impact the ETF's ability to buy or sell positions
• Interest rate risk: Changes in interest rates can affect the value of the ETF's holdings and its overall performance
• Credit risk: The creditworthiness of the issuers of the underlying catastrophe bonds can impact the ETF's returns

👤 Best For

The Brookmont Catastrophic Bond ETF may be suitable for investors seeking diversification, income, and exposure to an alternative asset class that has historically exhibited low correlation to traditional fixed-income and equity markets. However, investors should be aware of the unique risks associated with catastrophe bonds and be willing to hold the investment for the long term.