The LeaderShares® Activist Leaders® ETF seeks to generate long-term capital growth. The Fund is an actively managed exchange-traded fund (“ETF”) that employs an investment approach that focuses on equity securities that are the target of shareholder activism. These equity securities are identified using a proprietary quantitative methodology built on the foundation of tracking legally mandated filings known as "13D" filings that are submitted with the Securities and Exchange Commission (“SEC”). Rules adopted under the Securities Exchange Act of 1934 require a shareholder that acquires, with an activist intent, more than 5% of a company's shares to file a form with the SEC known as a Schedule 13D that discloses the investor's identity and the investor’s purpose in acquiring those shares.
The Fund’s Adviser identifies Activist Leader® investors utilizing a proprietary methodology based upon qualitative elements, including research into the effectiveness of activist investors’ achievement of stated objectives and creation of positive shareholder returns in positions that were the subject of a 13D filing by them. Because the Adviser’s identification of Activist Leaders® investors is based on ongoing research, the list of Activist Leaders® investors may change over time.
The Fund will be invested in equity securities of companies listed on a U.S. exchange with market capitalizations of at least $1 billion at the time of initial purchase. The Fund may focus its investments in a particular sector, industry or group of industries. The Fund may utilize derivatives, such as equity options and total return swap agreements, to seek to achieve its objective and for hedging purposes.
The Fund may engage in active and frequent trading.
| Ticker | ACTV |
|---|---|
| Category | U.S. Equities |
| Primary Exchange | NYSE Arca |
| CUSIP | 90214Q717 |
| Gross Expense Ratio | 0.75% |
| Shares Outstanding | 2175000 |
| $ Total Net Assets | 70156622.23 |
| Days Traded At Premium |
Days Traded At Discount |
|
|---|---|---|
| Year 2023 | 74 | 134 |
| Q1 2024 | 6 | 47 |
| Q2 2024 | 14 | 35 |
| Q3 2024 | 13 | 42 |
| Name | Net Asset % |
|---|---|
| MERCURY SYSTEMS | 4.44 |
| ALIGHT INC-CL A | 4.22 |
| FORTREA HOLDINGS | 4.20 |
| SOUTHWEST GAS HO | 4.06 |
| JANUS HENDERSON | 4.05 |
| SOUTHWEST AIR | 3.96 |
| HOWARD HUGHES HO | 3.95 |
| JETBLUE AIRWAYS | 3.88 |
| DANA INC | 3.85 |
| RESTAURANT BRAND | 3.78 |
1Market Price is official closing price
2The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for each fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
3Holdings are subject to change. Holdings and percent of assets are based on security assets only, not including cash or receivables (unpaid interest and dividends).
ETF Prospectus Offering:
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 888-617-1444, or visit www.leadersharesetfs.com. Read it carefully.
The LeaderShares® Activist Leaders® ETF is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Redwood Investment Management, LLC is not affiliated with Northern Lights Distributors, LLC.
Important Risk Disclosure Information:
The LeaderShares® Activist Leaders® ETF is new with a limited history of operations for investors to evaluate. There is no guarantee that the Funds will achieve their objective, generate positive returns, or avoid losses.
ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund’s shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time (the “NAV Calculation Time”). Shares are bought and sold at market price (closing price) not NAV. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined).
An active secondary market for the Fund’s shares may not exist. Although the Fund’s shares will be listed on an exchange, subject to notice of issuance, it is possible that an active trading market may not develop or be maintained. There is no guarantee that distributions will be paid. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET when NAV is normally determined for most LeaderShares® Funds, and do not represent the returns you would receive if you traded shares at other times. Total Annual Fund Operating Expenses are 0.75%.
LeaderShares® is a registered trademark of Redwood Investment Management, LLC (“Adviser”).
8097-NLD-10/27/2020