HNDL vs KNOW

Key Takeaways

• HNDL is a passively managed, index-based fund of funds that combines equities, bonds, and alternative income exposures with roughly 23% structural leverage, while KNOW is a small, actively managed global multi-asset fund pursuing income and capital growth through fundamental stock selection.
• The two funds occupy very different risk profiles: HNDL leans toward bond-heavy, income-oriented diversification, whereas KNOW carries a concentrated equity tilt toward industrials, energy, and technology.
• Cost structures diverge meaningfully, with HNDL charging a net expense ratio of about 0.95% versus roughly 1.09% for KNOW, an above-average fee for a fund of its size.
• Liquidity and scale differ sharply: HNDL holds several hundred million dollars in assets, while KNOW is a much smaller, less liquid vehicle with a limited daily trading footprint.
• HNDL targets a high monthly distribution with the goal of a 7% annual rate, a portion of which may be return of capital, whereas KNOW emphasizes long-term buy-and-hold capital appreciation with a modest yield.

Introduction

Comparing the Strategy Shares Nasdaq 7HANDL Index ETF and the Fundamentals First ETF is less a head-to-head rivalry than a study in contrasting investment philosophies. HNDL is a diversified, bond-centric allocation vehicle engineered around income and structural leverage, while KNOW is a younger, actively managed global fund built on fundamental equity and fixed-income research. Although both target investors seeking a blend of income and growth, their underlying construction, sector exposure, cost structure, and risk profiles place them in different corners of the ETF universe. Understanding those structural differences is essential for investors evaluating relative positioning across asset classes in the current market environment.

Strategy Shares Nasdaq 7HANDL Index ETF (HNDL) Overview

HNDL is a passively managed, index-based fund of funds that seeks to track the Nasdaq 7HANDL Index. Its mandate is a target-distribution strategy designed to pursue a high monthly income stream while seeking a relatively stable net asset value. The index splits exposure into a Core Portfolio and an Explore Portfolio. The Core Portfolio allocates 50% of assets across fixed income and equity ETFs, with roughly 70% in U.S. aggregate bond funds and 30% in large-cap equity funds. The Explore Portfolio allocates the remaining 50% across 12 income-oriented asset categories, including master limited partnership (MLP) and energy infrastructure, utilities, real estate investment trusts (REITs), dividend appreciation, and covered-call strategies.

The fund typically holds about two dozen underlying ETFs. Top holdings include the Schwab U.S. Aggregate Bond ETF, iShares Core U.S. Aggregate Bond ETF, and Vanguard Total Bond Market ETF, alongside the Global X MLP & Energy Infrastructure ETF, Invesco NASDAQ 100 ETF, State Street Utilities Select Sector SPDR Fund, Vanguard Dividend Appreciation ETF, WisdomTree U.S. Efficient Core Fund, JPMorgan Equity Premium Income ETF, and Schwab U.S. REIT ETF. The strategy employs roughly 23% structural leverage through a total return swap and carries a net expense ratio of approximately 0.95%. The Explore Portfolio is rebalanced monthly and reconstituted annually. Investors should note that a portion of HNDL's distributions may represent return of capital rather than investment income.

Fundamentals First ETF (KNOW) Overview

KNOW is an actively managed ETF from Mason Capital that pursues income and capital growth through a long-only, buy-and-hold strategy grounded in fundamental research. The fund invests primarily in publicly traded equity securities and fixed income, spanning companies of any market capitalization across the United States and developed international markets. It launched in early 2024 and carries a net expense ratio of roughly 1.09%, reflecting its active management and relatively small asset base of under $10 million.

The portfolio is notably equity-heavy, with equities representing roughly three-quarters of assets and fixed income a smaller share. Sector exposure is led by industrials, energy, and technology, followed by financial services, healthcare, and basic materials. Top holdings include KLA Corporation, Lam Research, Taiwan Semiconductor Manufacturing Company, Alphabet, and W.W. Grainger, with a U.S. Treasury money market fund as a cash management position. This concentration in semiconductors, capital equipment, and industrial leaders gives KNOW a cyclical, innovation-sensitive profile that differs sharply from HNDL's bond-centric tilt.

Industry and Thematic Backdrop

The two ETFs sit at the intersection of several broad themes shaping markets in recent cycles. HNDL is sensitive to interest rate expectations and credit conditions, given its heavy fixed-income allocation and income-oriented sleeve. Persistent debate over central bank policy, inflation, and the yield curve directly influences both its bond holdings and its distribution-focused equity categories such as utilities and REITs. KNOW, by contrast, is tied to the industrial and semiconductor earnings cycle, global manufacturing activity, and capital spending on artificial intelligence and advanced equipment. Its meaningful energy and industrials weighting also links it to commodity prices and infrastructure demand. Both funds face distinct risks: HNDL to duration and leverage, and KNOW to sector concentration, foreign currency swings, and the liquidity constraints of a small fund.

Performance and Positioning Comparison

Because their structures differ so fundamentally, direct performance comparisons can be misleading. HNDL's multi-asset, bond-weighted design tends to produce a smoother, lower-volatility return path, with much of its total return delivered through monthly distributions. Its leverage and income sleeve can enhance yield but also magnify drawdowns when bonds and equities sell off together. KNOW, as a concentrated global equity portfolio, has historically displayed wider swings and greater upside sensitivity to technology and industrial momentum. Its relative positioning benefits when growth and cyclical leadership dominate, while it may lag during defensive rotations or periods favoring value and bonds. From a volatility and diversification standpoint, HNDL offers broader asset-class balance, whereas KNOW offers targeted, factor-like exposure to quality cyclical and innovation-driven companies.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending names, breakout candidates, and market opportunities more efficiently than manual screening. By combining pattern recognition with fundamental and technical data, it supports more informed relative positioning across ETFs like HNDL and KNOW. Explore the AI Screener to refine your own comparison and identify opportunities aligned with your strategy.

Tickeron AI Verdict

Based on observable structural characteristics, Tickeron's AI would likely favor HNDL over KNOW for a broader range of investors in the current environment. HNDL offers superior diversification across asset classes, materially greater liquidity, a lower net expense ratio, and a well-defined, rules-based income objective. Its bond-heavy design provides a steadier risk profile relative to KNOW's concentrated equity exposure. KNOW's active, fundamental approach can add value in favorable cyclical and technology regimes, but its small asset base, higher cost, and sector concentration introduce liquidity and concentration risks. As a result, HNDL presents a more balanced combination of structural strength, cost efficiency, and risk-adjusted positioning, while KNOW remains best suited to investors seeking focused, actively managed global equity exposure.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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