BTS Asset Management, Inc.

Key Holdings and Their Significance

• HYLB (Xtrackers USD High Yield Corporate Bond ETF): $25.92M (35.06%). This is the single largest position and by itself represents a major directional bet on U.S. high-yield corporate credit.
• USHY (iShares Broad USD High Yield Corporate Bond ETF): $25.86M (34.97%). Together with HYLB these two holdings constitute ~70.0% of the portfolio and are largely overlapping exposures to U.S. high-yield corporate debt.
• Invesco S&P 500 High Dividend Low Volatility ETF: $9.00M (12.18%). This sizable equity ETF provides dividend-focused, lower-volatility equity exposure and is the third-largest allocation.
• Other notable holdings (each <2% of portfolio): JEPI ($1.18M, 1.59%), DIA ($1.12M, 1.52%), TFLO ($0.905M, 1.22%), and several single-name equities (Consolidated Edison $742K, Kroger $649K, Nvidia $508K, Alphabet $395K, Meta $370K).
• Fixed-income/credit complements: SRLN (senior loans $603K), SJNK (short-term high yield $301K), CLO ETFs JAAA and JBBB ($452K and $301K respectively), IEF (7–10 year Treasuries $553K), and an Agency bond ETF ($453K). These augment the dominant high-yield exposure with varied credit instruments.

Implication: the portfolio’s risk/return profile is driven overwhelmingly by U.S. high-yield credit (via HYLB/USHY), supplemented by dividend/low-volatility equities and a mix of loan/CLO/agency/treasury instruments.