Fund Family Overview
Fund Family Overview
- EcoLogical Strategy ETF
- US Market Rotation Strategy ETF
- NASDAQ 7HANDL™ Index ETF
- Strategy Shares Newfound/ReSolve Robust Momentum ETF
EcoLogical Strategy ETF
The Fund is an actively managed exchange-traded fund (“ETF”) and, under normal conditions, invests at least 80% of its net assets (plus borrowings for investment purposes) in the securities of ecologically-focused companies.
Ecologically-focused companies are companies that have positioned their business to respond to increased environmental legislation, cultural shifts towards environmentally conscious consumption, and capital investments in environmentally oriented projects. These companies include all companies that are components of recognized environmentally-focused indices.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is nondiversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds. The performance of the Fund may be subject to substantial short term changes. To the extent the Fund invests in the stocks of smaller-sized companies, the Fund may be subject to additional risks, including the risk that earnings and prospects of these companies are more volatile than larger companies. Smaller-sized companies may experience higher failure rates than larger companies and normally have lower trading volume than larger companies. These factors may affect the value of your investment. Investments in real estate investment trusts (REITS) involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risks, and may be more volatile than other securities. There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend.
US Market Rotation Strategy ETF
The US Market Rotation Strategy ETF is an actively managed exchange traded fund (“ETF”). Under normal market conditions, the ETF invests in companies that are organized in the US and included in the S&P Composite 1500, which is comprised of large-cap, mid-cap and small-cap companies. The ETF may over- or under-weight certain industry sectors and segments of the S&P Composite 1500, depending on which the managers believe to have the greatest or least potential for capital appreciation given the current market environment. This ETF may be appropriate for long-term investors looking for a unique approach to pursuing capital appreciation. It may provide an important overlay to the investor’s portfolio as the advisors seek to enhance performance through emphasizing the market sectors and segments believed most promising.
The Value in Sector Rotation
Different sectors within the S&P Composite 1500 typically outperform the market at various times. Market environments may cause certain sectors of businesses to perform more favorably than others. For instance, when technology companies are performing relatively well, financial companies may be taking a hit. The advisor attempts to identify the companies that may experience more profitability given the current economic cycle and overweight its portfolio in companies within that sector.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. To the extent the Fund invests in the stocks of smaller-sized companies, the Fund may be subject to additional risks, including the risk that earnings and prospects of these companies are more volatile than larger companies. Smaller-sized companies may experience higher failure rates than larger companies and normally have lower trading volume than larger companies. These factors may affect the value of your investment. Investments in international markets present special risks including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxations and differences in auditing and other financial standards. Risks of foreign investing are generally intensified for investment in emerging markets. Derivatives are investments in which the value is “derived” from the value of an underlying asset, reference rate, or index. The value of derivatives may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose more than the amount invested in the derivative. If the Fund uses derivatives to “hedge” the overall risk of its portfolio, it is possible that the hedge may not succeed. Options involve risks that are not suitable for all investors. No strategy, including option strategies, can eliminate risk. Options strategies in particular may result in the total loss of principal over a short period of time.
NASDAQ 7HANDL™ Index ETF
The NASDAQ 7HANDL™ Index ETF is a first-of-its-kind target distribution ETF designed to seek investment results that correlate generally, before fees and expenses, to the price and yield performance of the NASDAQ 7HANDL™ Index.
The NASDAQ 7HANDL Index seeks to represent an allocation to a balanced portfolio of low-cost ETFs that provide exposure to U.S. equities, bonds and alternative investments and employs leverage in an amount equal to 23% of the total portfolio. To achieve this leverage, the NASDAQ 7HANDL ETF holds a total return swap on an unleveraged version of the Index, the NASDAQ 7HANDL™ Base Index.
The NASDAQ 7HANDL ETF has adopted a policy to pay monthly distributions on Fund shares at a target rate that represents an annualized payout of approximately 7.0% on the Fund’s per-share net asset value on the date of a distribution’s declaration. All or a portion of a distribution may consist of a return of capital.
Strategy Shares Newfound/ReSolve Robust Momentum ETF
The Fund’s investment objective is to seek to provide investment returns that correspond, before fees and expenses, to the performance of the Newfound/ReSolve Robust Equity Momentum Index.
Investment Strategy
- The Index uses a quantitative, rules-based methodology to provide exposure to broad U.S. equity, international equity, and emerging market equity indices, to the extent that such equity indices are exhibiting positive momentum relative to U.S. Treasury market indices.
- The Index generally consists of exchange traded funds (“ETFs”) that track regional equity indices, representative of U.S. equities, developed international equities and emerging market equities, as well as ETFs that track U.S. Treasury market indices.
- The allocations to equity ETFs within the Index are determined by proprietary quantitative models that include momentum and trend following factors that are evaluated over various time horizons. The weightings within the Index are determined based on measures of the momentum of the global equity markets relative to the momentum of U.S. Treasury securities. The Fund may have 100% portfolio exposure to U.S. equity or developed international ETFs, and up to 25% portfolio exposure in emerging market equity ETFs.<//li>
- The Index will include U.S. Treasury ETFs when equity ETFs exhibit negative momentum and trend following characteristics versus the U.S. Treasury markets. The Fund may have 100% portfolio exposure to U.S. Treasury ETFs under such circumstances.
- The Index is rebalanced weekly.
For more complete information on Strategy Shares, download and view a prospectus or summary prospectus now or call (855) 477-3837 for a free prospectus or summary prospectus. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus or summary prospectus, which you should read carefully before investing. Investing involves risk, including loss of principal. There is no guarantee that this, or any investment strategy, will succeed. Shares of these ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.