(THY) Northern Lights Fund Trust - Ratings and Ratios

The Northern Lights Fund Trust (NYSE ARCA:THY) is an actively managed exchange-traded fund (ETF) designed to generate income through strategic investments in a diversified portfolio of fixed-income securities. The funds adviser employs a tactical approach, allocating assets across high-yield bonds, investment-grade bonds, municipal bonds, U.S. Treasuries, and cash or cash equivalents to optimize returns while managing risk. To further mitigate potential losses, the fund may utilize futures and ETFs to hedge long positions, enhancing its risk-adjusted return profile.

As a high-yield bond ETF, THY focuses on securities with higher credit risk but offers the potential for greater returns compared to investment-grade debt. The funds holdings are carefully selected to balance yield and credit quality, aiming to deliver consistent income in various market conditions. The inclusion of municipal bonds adds tax-advantaged income, while U.S. Treasuries provide a safe-haven component to stabilize the portfolio during periods of market stress.

From a technical perspective, THY has shown stability, with its 20-day, 50-day, and 200-day moving averages (22.25, 22.24, and 22.12, respectively) indicating a sideways trend. The Average True Range (ATR) of 0.11 reflects low volatility, suggesting minimal price fluctuations. The average 20-day volume of 10,449 shares highlights moderate trading activity, which is typical for a niche fixed-income ETF.

Fundamentally, the funds assets under management (AUM) of $36.88 million indicate a focused investment strategy, allowing for targeted portfolio adjustments. This scale enables the adviser to maintain liquidity while accessing a broad range of income-producing securities. The funds structure is designed to appeal to income-seeking investors who prioritize stability and predictable returns.