Option Strategies
Strategies for clients’ seeking to manage risk and generate cash flow with options. Potential to profit from trading underlying securities through puts and covered calls.
Shelton Equity Income Fund
The Fund’s objective is to achieve a high level of income and capital appreciation (when consistent with high income) by investing primarily in income producing U.S. equity securities.
Morningstar RatingTM
EQTIX
Shelton Equity Income Fund (EQTIX) received an Overall Morningstar RatingTM of 5 stars among 77 Derivative Income funds, based on risk-adjusted returns, as of 9/30/2024.* Important Information for Morningstar® Rating
Fund Information
Ticker: EQTIX
Benchmarks:
CBOE Buywrite Index
S&P Citigroup Value Index
In The News
Video: SchwabTV – Adding Covered Calls to Your Portfolio with Barry Martin, CFA
Article: Nasdaq.com – Now Might Be a Good Time to Think About a Managed Option Strategy by Nick Griebenow, CFA
By clicking the above links, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
Management Team
Steve Rogers
Barry Martin, CFA
Nick Griebenow, CFA
Resources
| Documents | |
|---|---|
| Prospectus |  |
| Annual Report | |
| Statement of Additional Information | |
| Semi-Annual Report | |
Important Information
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks.
*The fund’s Morningstar three-, five-, ten-year ratings respectively, 5 stars, 5 stars, 5 stars among 77, 67, 37 funds.
Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).
Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
Effective on May 19, 2021, the fund changed its name from Shelton Core Value Fund to Shelton Equity Income Fund.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Shelton Equity Income Strategy
The Shelton Equity Income Strategy serves as a “core equity” strategy within your overall asset allocation program. Our flexibility for your clients’ preferences will help you deliver the personalization your client is seeking.
We seek to increase cash flow and reduce overall volatility by building a portfolio of carefully selected US stocks and writing calls on the stocks held in the portfolio. This process is generally referred to as “selling covered calls.”
Strategy Information
In The News
Video: SchwabTV – Adding Covered Calls to Your Portfolio with Barry Martin, CFA
Article: Nasdaq.com – Now Might Be a Good Time to Think About a Managed Option Strategy by Nick Griebenow, CFA
By clicking the above links, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
Process
Our team selects a diversified portfolio of large cap blue-chip equities, all of which are selected based on in-depth fundamental analysis. Portfolio sector weightings are designed to be similar to those of the S&P 500, to avoid sector concentrations. On these carefully selected US stocks, we seek to fully write the portfolio to reduce overall volatility while adding incremental cash flow. The number of stocks may range between 30 and 50 depending on the size of the portfolio.
| Distilling the Equity Universe | |
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We start with the S&P 500, a universe of widely held large-cap US stocks in the industrial, transportation, utility, and financial sectors which are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor’s. |
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Applying fundamental analysis, stocks are ranked using third-party research, which include factors such as the 10-year trend of relative earnings and prices, recent earnings, price changes and earnings surprises. |
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Using an additional fundamental screen, stocks are filtered by a variety of criteria, including free cash flow yield and price to sales ratios. The highest ranking equities are then selected in each of 11 sectors to closely replicate the sector weightings of the S&P 500 Index. The Portfolio Manager has a preference for large-cap stocks with attractive dividend yields. |
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Finally, we identify and purchase roughly 30 equities which we believe have the most over-priced call options. We strategically write (sell) those covered calls two to six times per year to generate cash flow in addition to the portfolio’s dividend yield. |
Benefits
- 5-7% cash flow, not including the portfolio’s dividend yield
- Diversified portfolio allocation seeking to generate cash flow
- Reduce portfolio volatility while also retaining potential for limited capital appreciation
- Comprehensive reporting
- Access to the Portfolio Management team
Considerations
- A covered call strategy limits upside potential for stock appreciation and is likely to therefore underperform in strong markets.
- A covered call does not protect a stock from downside risk. The loss for the investor on each position could be the current price of a stock less the premium received for the call option.
- Withdrawals (such as systematic withdrawals as part of an income strategy) may result in a declining portfolio value over time.
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- If securities are called away, substantial capital gain tax could be incurred.
- The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.
Management Team
Barry Martin, CFA
Nick Griebenow, CFA
Jason Goldenberg
FAQs
Yes. Some investors don’t want to add further concentration of stocks they may already own elsewhere in their portfolios. Others prefer to avoid stocks that don’t fit socially conscious or other criteria. We honor these requests.
Compared to owning the underlying securities outright (without overlay), Covered Call Writing may limit upside potential for securities appreciation. If securities are called away, substantial capital gain tax could be incurred. Option overlay strategies do not protect a security from downside risk. Investors could lose up to the full current price of underlying securities, less option premiums received.
The proceeds are reinvested into a replacement security as determined by the Portfolio Manager.
Yes, if Shelton Capital believes these stocks fit the objectives of the strategy and provide option-writing opportunities, existing positions can be transferred to a strategy.
Important Information
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).
Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any option strategies. There are management fees and other charges associated with the Shelton Separately Managed Account programs.
Shelton Option Overlay Strategy
The Shelton Option Overlay Strategy is designed to implement an Option Overlay on a large concentrated single-stock position that a client is comfortable selling at a specific target price. With a customizable risk/return trade off, we seek to make existing assets more productive. We monitor existing and potential option positions for the most advantageous option given the clients risk/return objectives and the current asset’s characteristics. The strategy’s goal is to enhance returns above the stand alone performance of the stock by 2-6% annually depending on the underlying stock.
Strategy Information
Process
Investors holding one or more concentrated stock positions should consider the Shelton Option Overlay Strategy if they are looking to:
- Generate cash flow
- Reduce risk
- Maximize liquidation value
Advisors can also use Shelton Option Overlay Strategy to seek potential current cash flow from a concentrated stock position while enabling a gradual, planned reduction in stock concentration over time, helping the assets move into a more diversified managed portfolio.
No investment strategy is without risk. Upside potential is limited, the estimated cash flow target may not be met, and a change in the Target Price may require additional shares or cash.
The Option Overlay makes such assets visible to the advisor and gives the advisor a continuing role in monitoring their place in the client’s overall net worth.
Benefits
- With a customizable risk/ return trade-off, the client has the potential to enhance cash flow by as much as 2-6% depending on the particular stock making the holding more productive.
- Shelton Capital applies our expertise and options valuation technology to identify the most favorable call writing opportunities based on client objectives.
Considerations
- The Shelton Option Overlay Strategy involves selling potential upside return on a stock for current cash flow in the form of option premium. While the strategy has the potential to improve cash flow produced on a stock position, the primary strategy of selling covered calls limits the potential upside performance of the shares that have been covered by the options sold.
- This strategy does not protect a stock from downside risk. The loss for the investor on each cash position could be the current price of a stock less the premium received for the call option.
- If securities are called away, substantial capital gain tax could be incurred.
- The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.
- The Target Price is an estimate of the upside potential using our Shelton Option Overlay Strategy. There is no guarantee that this value can be realized.
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
Management Team
Barry Martin, CFA
Nick Griebenow, CFA
Jason Goldenberg
FAQs
Important Information
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).
Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There are management fees and other charges associated with the Shelton Separately Managed Account programs.
Shelton Covered ETF Portfolio Strategy
The Shelton Covered ETF Portfolios are designed for investors who are looking for a portfolio solution with a fully diversified portfolio representation using a comprehensive mix of ETFs.
Process
| Allocation | Evaluation | Opportunities | Risk & Return |
|---|---|---|---|
| Shelton Capital allocates based on efficient frontier analysis and offers three asset allocation models to choose from based on a client’s time frame, risk tolerance and cash flow criteria. Each model has full asset class representation offered by today’s ETF providers such as iShares, State Street, and Vanguard. The models are carefully constructed and monitored to stay current in today’s market. | We then evaluate and select the best ETF for each asset class in the portfolio. The selection is based on key attributes such as liquidity, expense ratio, and availability of an options market. We will continue to evaluate each holding to ensure we have the best representation for that asset class. | Combining years of options trading expertise with the latest options valuation technology, we identify the most favorable call writing opportunities and sell the calls on most, if not all, ETF positions. A cash flow stream is generated through the call option premiums collected plus any dividends the underlying ETF may be paying. | We continue to monitor risk and return characteristics for the open positions. As options expire, new options are evaluated and sold as we seek additional premiums to meet the cash flow target. |
Portfolio Options
Conservative: This Strategy provides a portfolio that seeks to have lower volatility in relation to the overall market (as measured by the S&P 500) for investors that seek moderate growth. We seek to manage the Strategy so that over long periods of time, the strategy should have less volatility than the overall equity market. With lower anticipated volatility, this approach carries relatively lower risk and seeks to provide a moderate level current cash flow yield. This Strategy is appropriate for investors with a long-term time horizon.
Balanced: This Strategy provides a portfolio that seeks to have a higher level of volatility than our Conservative Strategy for investors who are more comfortable with risk, seek capital growth and a higher current cash-flow yield in relation to our Conservative Strategy. We seek to manage the Strategy so that over long periods of time, the Strategy should have lower volatility in relation to the overall market (as measured by the S&P 500). With its anticipated higher volatility relative to the Conservative Strategy, this approach carries relatively higher risk and is expected to provide a higher level current cash flow yield. This Strategy is appropriate for investors with a long-term time horizon.
Growth: This Strategy provides a portfolio that seeks to have a higher level of volatility than our Balanced Strategy for investors who are comfortable with risk, seek capital growth and a higher current cash-flow yield in relation to our Balanced Strategy. We seek to manage the strategy so that over long periods of time, the strategy should have lower volatility in relation to the overall market (as measured by the S&P 500). With its anticipated higher volatility relative to the Balanced Strategy, this approach carries relatively higher risk and is expected to provide the highest level of current cash flow yield of any of Covered ETF portfolios. This Strategy is appropriate for investors with a long-term time horizon.
Benefits
- Provide Investors an ETF strategy that combines aspects of both passive and active management.
- Seeks to achieve market returns similar to the Dow Jones Moderately Conservative Portfolio Index by investing in a portfolio of exchange traded funds (ETFs) while utilizing a covered call writing strategy to generate cash flow.
- Available in three different risk/return parameters agreed upon to by the client (Conservative, Balanced and Growth).
Considerations and Risks
- A covered call strategy limits upside potential for security appreciation and is likely to, therefore, underperform in strong markets.
- A covered call does not protect a security from downside risk. The loss for the investor on each position could be the current price of a security less the premium received for the call option.
- Withdrawals (such as systematic withdrawals as part of an income strategy) may result in a declining portfolio value over time.
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.
Management Team
Barry Martin, CFA
Nick Griebenow, CFA
Jason Goldenberg
FAQs
The proceeds are reinvested into a replacement security as determined by the Portfolio Manager.
Compared to owning the underlying securities outright (without overlay), Covered Call Writing may limit upside potential for securities appreciation. If securities are called away, substantial capital gain tax could be incurred. Option Overlay Strategies do not protect a security from downside risk. Investors could lose up to the full current price of underlying securities, less option premiums received.
The process of matching your investment goals and personal profile with an asset allocation mix is based primarily on risk tolerance, time horizon, and other factors. While some clients establish their investment objectives and guidelines on their own, consulting with an advisor may be beneficial to identify the most suitable model portfolio for best results.
Important Information
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).
Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There are management fees and other charges associated with the Shelton Separately Managed Account programs.
Covered Call Writing Basics
Understand the basics behind enhancing portfolio returns under certain market conditions.
Overview
Generally, investors that own a widely held, publicly-traded security can choose to write a covered call against the position as long as an options market exists for that stock.
A call is a listed option that gives the buyer the right (without obligation) to buy the underlying shares at a stated “strike price” on or before the option’s maturity date.
The seller (“writer”) of a call receives a cash premium when the option is sold and has the obligation to sell shares at the strike price, at any time on or before maturity. Each premium generates cash flow for the seller.
When the seller owns the underlying security against which the option is written, the sale is a covered call write, which is considered a hedged transaction because the seller is “long” the security and “short” the option. If the security’s price exceeds the strike price and is called away, the covered writer can deliver the long position at little or no loss or out-of-pocket cost. However, the writer sacrifices any price gains above the strike price.
Our sophisticated professionals have the specialized knowledge and experience to:
- Know when options are attractively priced, relative to their value
- Choose the best strike prices for pursuing a personal investment objective
- Trade or “roll” options before maturity, to maximize their “time decay” value
- Manage to avoid portfolio disruption and adverse tax consequences
A disciplined Covered Call Writing Strategy is designed in consultation with the client’s advisor who clearly understands the client’s objectives allowing for a customized solution. The Strategy is then professionally implemented, day-to-day, by Shelton Capital Management, focusing on analyzing the options market and executing options trades on a timely, cost-efficient basis.
Example
An investor owns 500 shares of Exxon Mobil common stock (XOM) when it is trading at $71 per share. The investor sells five call options on XOM at a premium of $3 per share and a strike price of $75. The investor will receive $1,500 in cash (500 shares X $3 premium) when the transaction is made and participate in any price gains up to $75.
But if the stock goes higher before the option’s maturity date, appreciation above $75 is lost. The investor must either: 1) give up the stock at $75 or: 2) pay the difference between the $75 strike price and the market price per share at maturity.
Fixed Income Strategies
At Shelton Capital Management we actively manage fixed income portfolios which seek to generate total investment return and income, focused on the US high-yield and investment grade taxable and tax-exempt bond markets.
We employ a thorough top-down and bottom-up research approach. We believe that actively managing fixed income today requires us to have soundly developed views of economic and business cycles as well as interest rate and credit cycles. Our unique approach to portfolio construction aims to generate differentiated above-market returns that are uncorrelated to market benchmarks.
We are also skilled in ESG and impact investing in the US fixed income markets and believe utilizing ESG factors in fixed income investing is likely to generate unique uncorrelated returns and may help create desired social impact objectives.
Learn more about our funds and strategies that consider environmental and impact investing approaches.
Shelton Tactical Credit Fund
Fund Objective
Seeks to achieve current income and capital appreciation.
Strategy Highlights
- The Fund is managed as a total return fund, employing a “credit long/short” investment strategy.
- The Fund employs an opportunistic relative-value credit strategy focused on a portfolio of credit-related instruments, including U.S. high yield and investment grade municipal and corporate bonds.
- The Fund marries a top-down macro thesis with bottom-up fundamental research including relative value, event driven, special situation and arbitrage opportunities.
- To the extent the Fund invests in tax-exempt municipal bonds, the Strategy may generate tax-advantaged income.
Fund Information
Portfolio Management Team
Peter Higgins
Bill Mock
Jeffrey Rosenkranz
Chris Walsh
Resources
| Documents | |
|---|---|
| Prospectus | |
| Annual Report | |
| Statement of Additional Information | |
| Semi-Annual Report | |
Important Information
It is possible to lose money by investing in the Fund. Past performance does not guarantee future results.
The Fund invests without restriction as to issuer capitalization, country, credit quality and without restriction as to the maturity of fixed income securities. The Fund generally will take long positions in securities believed to be undervalued and short positions in securities believed to be overvalued. The Fund typically employs derivatives for hedging purposes, such as futures contracts, options, credit-default swaps, and total return swaps.
The risk for loss on short selling is greater than the original value of the securities sold short, and theoretically is unlimited, because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Although the Fund intends to use derivatives to reduce risk, they may have the opposite effect and increase the volatility or magnitude of loss by the Fund. Derivatives may be illiquid and subject to the risk of default by a counter-party. The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The Fund may invest in non-investment grade fixed income securities, sometimes known as “high-yield bonds” or “junk bonds,” which may subject the Fund to greater credit risk, price volatility and risk of loss than investment grade securities. Some of the “junk bonds” may include securities issued by distressed companies experiencing acquisition, merger, spinoff, restructuring, bankruptcy, downgrade, delinquency, default, or relatively poor financial performance. Distressed securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds, including potential loss of the Fund’s entire investment.
Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
Shelton Tactical Credit Fund is distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Customized Portfolios
Shelton Capital Management has been managing fixed income portfolios since the company was founded in 1985.
The fixed income portfolio team is comprised of Peter Higgins, Bill Mock, Jeffrey Rosenkranz, Paul Rapponotti, CFA and Chris Walsh. Our team has a combined experience of 100+ years throughout all fixed income asset classes and investing markets over the past 25+ years. We have managed all sectors of our core fixed income asset classes across several credit and economic cycles.
Overview
- We actively manage bond portfolios based on a range of risk tolerances, income objectives and tax considerations.
- Our portfolio management team continuously monitors risk and return characteristics across portfolio holdings.
- ESG and Impact considerations can be included as part of a portfolio’s overall strategy objectives.
Portfolio Construction Process
- We employ a thorough top-down and bottom-up research approach.
- Our unique approach to portfolio construction is expected to generate differentiated above-market returns that are uncorrelated to market benchmarks.
Strategy Information
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| Shelton ESG Municipal Bond Fact Sheets |
Shelton Low Volatility Bond Fact Sheet |
Shelton Aggregate Bond Fact Sheet |
Shelton Intermediate Aggregate Bond Fact Sheet |
Management Team
Peter Higgins
Jeffrey Rosenkranz
Bill Mock
Chris Walsh
Important Information
When comparing mutual funds to SMAs one should carefully consider the fees and expenses associated with each type of investment. All investments carry a certain degree of risk, including the possible loss of principal and there are specific risks that apply to each investment strategy. There is no assurance that an investment will provide positive performance over any period of time. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Prospective clients should consult their financial advisor about investment strategies that are appropriate for their investment objectives, risk tolerance, tax status and liquidity needs. Income may be subject to the alternative minimum tax (AMT) and/or state and local taxes, based on the state of residence.
International Strategies
In an expanding global marketplace, high-quality companies and investment opportunities are scattered far across the world. Shelton Capital Management finds those opportunities and offers U.S investors international exposure in a concentrated portfolio through the Shelton International Select Equity Fund, separately managed accounts (SMAs) and the Shelton Emerging Markets Fund.
Shelton International Select Equity Fund
The Shelton International Select Equity Fund seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a foreign large blend.
Fund Information
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| Download Commentary | Download Fact Sheet: Shelton International Select Equity Fund Tickers: SISLX, SISEX Benchmark: MSCI ACWI Ex US |
Process
The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks and combining analysis of the investment merit of each individual stock with prudent risk-management to produce consistent and superior returns.
A distinctive approach to international investing – Inside, Outside, Upside:
Strategy Benefits
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Use data science and machine learning to access insight into the range of possible future outcomes and focus on those that we believe will deliver strong performance while contributing to the risk profile of the portfolio.
- Access to fast-growing, developing markets.
Strategy Considerations
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
Resources
| Documents | |
|---|---|
| Prospectus | |
| Annual Report | |
| Statement of Additional Information | |
| Semi-Annual Report | |
Important Information
It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing. There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors.
International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Shelton Emerging Markets Fund
The Shelton Emerging Markets Fund seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a Diversified Emerging Markets fund.
Morningstar RatingTM
EMSQX
Shelton Emerging Markets Fund (EMSQX) received an Overall Morningstar RatingTM of 4 stars among 711 Diversified Emerging Markets funds, based on risk-adjusted returns, as of 9/30/2024.* Important Information for Morningstar® Rating
Fund Information
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| Download Fact Sheet: Shelton Emerging Markets Fund Tickers: EMSQX, EMSLX Benchmark: MSCI Emerging Markets |
Download Commentary |
Process
The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks and combining analysis of the investment merit of each individual stock with prudent risk-management to produce consistent and superior returns.
A distinctive approach to international investing – Inside, Outside, Upside:
Strategy Benefits
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Use data science and machine learning to access insight into the range of possible future outcomes and focus on those that we believe will deliver strong performance while contributing to the risk profile of the portfolio.
- Access to fast-growing, developing markets.
Strategy Considerations
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
Resources
| Documents | |
|---|---|
| Prospectus | |
| Statement of Additional Information | |
| Annual Report | |
| Semi-Annual Report | |
Important Information
It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
* The fund’s Morningstar three-, five-, ten-year ratings respectively, 4 stars, 4 stars, 4 stars among 711, 639, 426 funds.
There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI Emerging Markets Index captures large and mid cap representation across 26 Emerging Markets (EM) countries (Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates).
With 1,403 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Shelton International Select Equity SMA Strategy
The Shelton International Select Equity Portfolio seeks to deliver attractive risk-adjusted returns over time.
Strategy Information
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| Download Commentary | Download Fact Sheet: Shelton International Select Equity Strategy Benchmark: MSCI ACWI Ex US |
Process
The International Equity team at Shelton Capital manages concentrated, high-conviction portfolios of non-US large-cap and mid-cap companies. Shelton Capital Management offers this strategy through SMAs and a mutual fund.
The strategy seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks and combining analysis of the investment merit of each individual stock with prudent risk-management to produce consistent and superior returns.
A distinctive approach to international investing – Inside, Outside, Upside:
By focusing in on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.
Strategy Benefits
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Use data science and machine learning to access insight into the range of possible future outcomes and focus on those that we believe will deliver strong performance while contributing to the risk profile of the portfolio.
- Access to fast-growing, developing markets.
Strategy Considerations
- The Shelton International Select Equity SMA Strategy seeks to deliver attractive risk-adjusted returns over time by investing in American Depository Receipts (ADRs).
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
Important Information
It is possible to lose money by investing in the strategy. Past performance does not guarantee future results. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
ESG Strategies
At Shelton Capital Management we actively manage investments for clients seeking an environmental, green or sustainable focus.
Fixed Income Allocations:
- Green California Tax-Free Income Fund (CFNTX)
- Green Municipal Bond Portfolio Strategies and we can create customized portfolios (Fixed Income SMAs)
- Specific state options including California or New York
Shelton Sustainable Equity Fund (NEXTX, NEXIX)
Fund Objective
The Fund’s investment objective is to achieve long-term capital appreciation by investing in stocks in the sustainable economy.
Fund At A Glance
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- Identifies a universe of sustainable economy companies based on a set of qualitative criteria that have above average growth potential.
- A “sustainable economy” company is one which is believed to improve human well-being and increase economic efficiencies, while significantly reducing environmental risks.
- Seeks companies which provide products and services that help economies adapt to, solve or mitigate the effects of key environmental and economic systemic risks.
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Fund Information
In The News
Article: A $400 Billion Catalyst
Podcast: Bloomberg Intelligence – ESG Currents
Video: Navigating the Sustainable Investing Landscape in 2024
Whitepaper: Sustainable Alpha: Creative Construction and the Allocation of Capital
By clicking the above links, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
Fund Management
Shelton Capital Management is the Fund’s advisor and served as the investment advisor and administrator to the Shelton Funds since 1985.
Bruce Kahn, Ph.D.
Derek Izuel, CFA
Justin Sheetz, CFA
Nicolette DiMaggio
Elena Chavez
Resources
| Documents | |
|---|---|
| Prospectus | |
| Annual Report | |
| Statement of Additional Information | |
| Semi-Annual Report | |
Important Information
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks.
On October 11, 2022, Shelton Capital Management launched an institutional share class (ticker: NEXIX).
The portfolio’s environmental focus may limit investment options available to the Fund and may result in lower returns than returns of funds not subject to such investment considerations. There are no assurances that the Fund will achieve its objective and or strategy. Investing in securities of small and medium sized companies, even indirectly, may involve greater volatility than investment in larger and more established companies.
Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. A prospectus should be read carefully before investing.
As of October 10, 2022, Green Alpha advisors will no longer serve as sub-advisor to the Fund. As of October 10, 2022, Bruce Kahn will serve as lead portfolio manager of the Fund.
Effective December 20, 2022, the fund changed its name from Shelton Green Alpha Fund to Shelton Sustainable Equity Fund.
Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Green California Tax-Free Income Fund
Fund Objective
The Fund’s investment objective is to seek high current tax-free income for California residents.
Fund At A Glance
- Seeks to invest in bonds that meet environmental, social and governance screens.
- The manager uses criteria including, but not limited to, use of bond proceeds, expected environmental impact, source of revenues for repayment and reputation of issuer.
- Generally, purchases high quality bonds that are believed to have a low default probability
- Invests in municipal bonds issued by the State of California and produce tax-exempt interest.
This Fund is intended primarily for residents of California. If you are looking for tax-free income and are comfortable with the moderate volatility of a long-term bond fund, this may be the right investment for you.
Fund Information
Portfolio Management Team
Peter Higgins
Bill Mock
Resources
| Documents | |
|---|---|
| Prospectus | |
| Annual Report | |
| Statement of Additional Information | |
| Semi-Annual Report | |
Important Information
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.
The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include interest rate risk, state-specific risk, income risk, call risk, credit risk, and bankruptcy risk.
Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. A prospectus should be read carefully before investing.
Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Contact Us For More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients. Request to consult with a Portfolio Manager and your Director of Advisor Services to learn more about how we can help you meet your clients’ needs.
