In this exclusive interview, Adam Butler provides a comprehensive exploration of diversified Carry strategies, a concept traditionally confined to institutional investors. He begins by defining Carry—the expected return on an investment if its price remains unchanged—and explains its mechanics across equities, bonds, currencies, and commodities. The discussion highlights how combining these various Carry sources offers powerful diversification benefits. Adam then connects this to the concept of Return Stacking, explaining how ETFs like Return Stacked® U.S. Stocks & Futures Yield (RSSY) and Return Stacked® Bonds & Futures Yield (RSBY) seek to broaden access to sophisticated strategies by incorporating them alongside traditional stock and bond allocations.

Topics Discussed

1. Defining Carry beyond the traditional currency trade to include yields from stocks, bonds, and commodities
2. The strategy of diversifying Carry across multiple global asset classes to create a smoother return profile
3. The mechanics of a long/short global Carry portfolio that maximizes risk-adjusted yield across markets
4. Carry's role as an uncorrelated diversifier to traditional stock and bond portfolios and its complementary relationship with Trend following
5. The concept of Return Stacking as a method to add diversifying strategies without selling core assets
6. Using Return Stacking to overcome behavioral biases like investor regret and the reluctance to diversify away from equities
7. The democratization of institutional strategies through ETFs like RSSY and RSBY, which stack Carry on core holdings
8. The operational complexity and data-intensive nature of Carry strategies, explaining their historical inaccessibility to retail investors
9. Setting long-term return expectations for Carry and viewing periods of underperformance as building potential energy
10. The argument for seeking returns in less efficient macro markets compared to the highly competitive micro world of stock picking

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. This and other important information about the Return Stacked® ETF lineup is contained in their respective prospectus', which can be obtained by calling 1-844-737-3001 or clicking here.

Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Brokerage commissions may apply and would reduce returns.

ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a...