Natixis Gateway Quality Income ETF (Ticker: GQI) celebrates one-year anniversary

Highlights

GQI – the first ETF in Gateway’s 47-year history – has now accumulated over $140 million in assets during its inaugural year.
Gateway Investment Advisers, LLC has exclusively focused on options-based investment strategies and quantitative equity portfolio management to manage risk and generate cash flow since 1977; the investment management team has about 100 cumulative years of industry experience.
GQI’s net expense ratio of only 0.34% (gross expense ratio is 0.58%¹) makes it one of the most competitively priced ETFs in this space.²

BOSTON and CINCINNATI, December 19, 2024 – Natixis Investment Managers (Natixis IM) and Gateway Investment Advisers, LLC (Gateway), a pioneer in options-based investment strategies, celebrate the one-year anniversary of the Natixis Gateway Quality Income ETF (GQI). The ETF was launched on December 13, 2023, and has generated a total return of 20.99% since inception with a current 30-day SEC yield of 8.33% as of December 12, 2024.

This actively managed, income-generating equity ETF seeks to provide attractive yield relative to traditional fixed income that is primarily driven by market volatility. GQI also maintains the prospect for capital appreciation by combining a proprietary factor-based, high-quality focused equity portfolio with the characteristics of an index-option selling program. GQI is available for purchase on several major independent platforms, through select regional broker-dealer firms, and on all major custodial platforms.

“We are thrilled that GQI, Gateway’s first ETF, has reached its one-year milestone with a sizable asset base while generating the performance and yield profile that we have sought to provide investors,” said Michael T. Buckius, CFA^®, CIO of Gateway, and co-portfolio manager of GQI. “The rapid investor adoption of GQI is particularly gratifying in light of our team’s decades of experience helping clients reduce the risks of stock market investing through actively managed options-based equity strategies.”

“Derivative income ETFs such as GQI can offer a diversified income stream relative to traditional fixed income ETFs, which may be particularly appealing to investors looking to support retirement spending needs,” said Nicholas Elward, SVP and head of institutional product and ETFs at Natixis Investment Managers. “Having options exposure in the convenience of an actively managed ETF simplifies life for investors and advisors, who would otherwise have to build options programs on their own. GQI has been able to provide investors with a robust monthly distribution yield and uncapped quality equity exposure with a lower risk profile as compared to the S&P 500^® Index.”

Gateway uses a multifactor quantitative model to construct and manage GQI’s stock portfolio. The model evaluates US exchange-traded equities and seeks to maximize exposure to quality characteristics while considering issuer and sector exposures, among other constraints and considerations. The equity portfolio generally consists of approximately 75-125 securities, and can include U.S. exchange-listed common stocks, preferred stocks, American Depositary Receipts, and investment companies (including ETFs).

The features of an actively managed options overlay program are built into the GQI strategy and are designed to generate consistent income, distributed monthly, for investors. Replicating the characteristics of a laddered portfolio of one-month, near-the-money S&P 500^® Index call options sold on a rolling weekly basis, the options overlay is implemented on 50 percent of GQI’s equity portfolio to balance capital appreciation with income.

Day-to-day management of GQI is the responsibility of Gateway’s Daniel M. Ashcraft, Vice President and Portfolio Manager; Michael T. Buckius, CEO, CIO, and Portfolio Manager; Kenneth H. Toft, Senior Vice President and Portfolio Manager; and Mitchell J. Trotta, Portfolio Manager. Together, the team averages 20 years of tenure with Gateway. GQI’s primary listing venue is the New York Stock Exchange (NYSE Arca).

Natixis Gateway Quality Income ETF celebrates one-year anniversary

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¹ As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or expenses (with certain exceptions) once the expense limitation of the fund has been exceeded. This arrangement is set to expire on 4/30/26. When an expense limitation has not been exceeded, the gross and net expense ratios and/or yields may be the same.

² GQI’s net expense ratio ranks in the cheapest decile (11 out of 195 funds/share classes) within the Morningstar Derivative Income Category as of 12/17/24.

About Gateway Investment Advisers

Based in Cincinnati, Ohio, Gateway Investment Advisers, LLC (Gateway) specializes in quantitatively driven equity portfolio management and index options-based investing. Since 1977, the firm has maintained consistent focus on reducing the risk of equity investing and enhancing cash flow with option strategies. Gateway’s core low-volatility strategy seeks to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. The firm, which has been an affiliate of Natixis Investment Managers since 2008, had approximately $9.4 billion in assets under management as of September 30, 2024.

About Natixis Investment Managers

Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 15 active managers. Ranked among the world’s largest asset managers3 with more than $1.4 trillion assets under management4 (€1.2 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.

Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks. Natixis Investment Managers’ affiliated investment management firms include AEW; DNCA Investments;5 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris | Oakmark; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings are available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.

Natixis Investment Managers’ distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various US registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.

³ Survey respondents ranked by Investment & Pensions Europe/Top 500 Asset Managers 2024 ranked Natixis Investment Managers as the 19th largest asset manager in the world based on assets under management as of December 31, 2023.
⁴ Assets under management (AUM) of current affiliated entities measured as of September 30, 2024, are $1,427.2 billion (€1,279.0 billion). AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of nonregulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
⁵ A brand of DNCA Finance.

Average annualized total returns (%)^† as of 9/30/2024

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com. An exchange-traded fund’s market price is the price at which shares in the ETF can be bought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day. ETFs calculate the NAV at 4 p.m. ET, after the markets close. ^†Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. You may not invest directly in an index.

Investment Strategy Risks

Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are not individually redeemable directly with GQI and are bought and sold on the secondary market at market price, which may be higher or lower than the ETF's net asset value (NAV). Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns.

Unlike typical exchange-traded funds, there are no indexes that the GQI attempts to track or replicate. Thus, the ability of GQI to achieve its objectives will depend on the effectiveness of the portfolio manager. There is no assurance that the investment process will consistently lead to successful investing.

Investments in Equity-Linked Notes (ELNs) are subject to liquidity risk, which means there may not be an active market for ELNs which would prevent them from being sold at a fair price. Since ELNs are in note form, they are subject to certain debt securities risks, such as credit or counterparty risk. Should the prices of the underlying instruments move in an unexpected manner, GQI may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include GQI’s entire principal investment.

Options may be used for hedging purposes, but also entail risks related to liquidity, market conditions and credit that may increase volatility. The value of GQI's positions in options may fluctuate in response to changes in the value of the underlying asset. Selling call options may limit returns in a rising market.

Equity securities are volatile and can decline significantly in response to broad market and economic conditions.

GQI is new with a limited operating history.

Definitions

The S&P 500^® Index is a widely recognized measure of US stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors; it also measures the performance of the large-cap segment of the US equities market. You may not invest directly in an index.

© 2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Before investing, consider GQI’s investment objectives, risks, charges, and expenses. Visit https://www.im.natixis.com/en-us/products/exchange-traded-funds for a prospectus or a summary prospectus containing this and other information. Read it carefully.

Natixis Advisors, LLC is the adviser and Gateway Investment Advisers, LLC is the subadvisor for the Natixis Gateway Quality Income ETF. Natixis Advisors, LLC provides advisory services through its division Natixis Investment Managers Solutions. Advisory services are generally provided with the assistance of model portfolio providers, some of which are affiliates of Natixis Investment Managers, LLC. Natixis Advisors, LLC does not provide tax or legal advice. Please consult with a tax or legal professional prior to making any investment decision.

ALPS Distributors, Inc. is the distributor of the Natixis Gateway Quality Income ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.

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