The LeaderShares® AlphaFactor® Tactical Focused ETF seeks to generate long-term capital growth. The Fund is an actively managed exchange-traded fund (“ETF”) that employs an investment approach that utilizes a quantitative factor-based investment methodology focused on U.S. equities. The Adviser selects stocks based on a number of characteristics that include, but are not limited to, net share count reduction, free cash flow growth, dividend yield, volatility and debt/asset ratios. The final selection of stocks is based on market characteristics including, but not limited to, liquidity and market capitalization. The Fund expects the average daily trading volume of shares in companies being selected to be in excess of 400,000 shares per day at the time of purchase, however average daily trading volume may change due to market fluctuations. In addition, the Fund expects the market capitalization of the companies in which it invests to be $1 billion and greater, however this could change due to market fluctuations. The Fund will typically be invested in a diversified portfolio of equity securities or investments that are economically tied to equity securities (i.e., derivatives) such as equity options, of companies with market capitalizations of at least $1 billion at the time of initial purchase. The Adviser employs a multi-factor tactical risk management overlay that seeks to identify periods of above average risk. At times identified by the Adviser as above average risk, the Fund may exit positions in equity securities and become comprised primarily of money market instruments such as treasury bills, certificates of deposit and commercial paper and other short-term instruments, money market funds, or U.S. government bonds. Such investments can either be direct or through investments in other investment companies, including exchange-traded funds (“ETFs”). In identifying a time as above average risk, the Fund will consider multiple factors including negative market performance and negative market technical indicators such as advance versus decline breadth, as well as a proprietary set of supply and demand and economic factors. 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 | LSAT |
|---|---|
| Category | U.S. Equities |
| Primary Exchange | NYSE Arca |
| CUSIP | 90214Q691 |
| Gross Expense Ratio | 0.99% |
| Shares Outstanding | 2925000 |
| $ Total Net Assets | 123364863.45 |
| Days Traded At Premium |
Days Traded At Discount |
|
|---|---|---|
| Year 2023 | 77 | 142 |
| Q1 2024 | 11 | 43 |
| Q2 2024 | 15 | 37 |
| Q3 2024 | 6 | 54 |
| Name | Net Asset % |
|---|---|
| VISTRA CORP | 4.22 |
| JEFFERIES FINANC | 3.96 |
| PILGRIM'S PRIDE | 3.75 |
| TRAVEL + LEISURE | 3.72 |
| BRISTOL-MYER SQB | 3.69 |
| MARRIOTT INTL-A | 3.66 |
| FOX CORP - B | 3.64 |
| HILTON WORLDWIDE | 3.54 |
| LABCORP HOLDINGS | 3.46 |
| VALERO ENERGY | 3.43 |
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® AlphaFactor® Tactical Focused 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® AlphaFactor® Tactical Focused 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 0.99%.
LeaderShares® is a registered trademark of Redwood Investment Management, LLC (“Adviser”).
8098-NLD-10/27/2020