The Compoundr™ Strategy
It's like an IRA for your taxable account
What We Do
One of the biggest challenges in fixed income investing is that the majority of return comes in the form of interest income or if buying through an ETF, non-qualified dividends - both taxed at the investor's highest marginal rate. This significantly erodes after-tax returns, leaving investors with far less than they earn. In fixed income, it's not just about what you earn - it's about what you keep. That's where the Compoundr™ strategy comes in.
What makes this strategy stand out?
Defer Taxes. Converts ordinary income into deferred capital gains, avoiding annual taxation at higher marginal rates.
Harness Compounding Power. Keeps more money invested, allowing pre-tax dollars to grow over time.
Control & Flexibility. Investors choose when to realize gains, aligning with personal tax planning.
Enhanced After-Tax Returns. Improves long-term wealth outcomes versus traditional fixed income structures.
Portfolio Optimization. Enables proper asset allocation without being forced to shelter bonds only in retirement accounts.
How It Works
Timing is everything - like a relay race. Think of the Compoundr™ strategy as a smooth baton pass:
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The Race is Off!
The fund starts with Core ETF A as the lead runner.
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The Baton is Passed
Just before the ex-dividend date - when the dividend is priced in but not yet paid - it hands off to a closely matched Substitute ETF B.
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The Home Stretch
Once the dividend has been paid, the baton is passed back to Core ETF A, keeping the fund on track with total return, while deferring taxable income along the way.
It's not about racing ahead - it's about precision, timing, and maximizing efficiency every step of the way.
