Glossary
| Barclays US Aggregate Bond Index | The Bloomberg Barclays US Aggregate Bond Index, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the US. |
| Call Option | Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price. |
| Dow Jones | The DJIA or “The Dow” is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. |
| Hang Seng Index | The Hang Seng Index is a freefloat-adjusted market-capitalization-weighted stock-market index in Hong Kong. |
| Index Option | An index option is a financial derivative that gives the holder the right (but not the obligation) to buy or sell the value of an underlying index at the stated exercise price. No actual stocks are bought or sold. |
| NASDAQ | Nasdaq is a global electronic marketplace for buying and selling securities. |
| Option | A call (put) option gives the owner the right, but not the obligation to purchase (sell) the underlying instrument at the option’s strike price at or before option expiration (American option) or at expiration (European option). |
| Russell 2000 Index | The term Russell 2000 Index refers to a stock market index that measures the performance of the 2,000 smaller companies included in the Russell 3000 Index. |
| S&P 500 Index | The S&P 500 Index is a market capitalization-weighted index of the 500 largest U.S. publicly traded companies. |
| Stoxx 600 | An index tracking 600 publicly-traded companies based in one of 18 EU countries. |
| The Cboe Volatility Index (VIX) | The Cboe Volatility Index (VIX) is a real-time index that represents the market's expectations for the relative strength of near-term price changes of the S&P 500 index. |
| Yield bearing positions | Yield-bearing financial assets (YBFAs) are generally classified as bonds, notes or bills. These may include bonds and notes issued by the US Treasury, corporations, municipalities (tax free) or asset backed securities (ABS). Bills are generally comprised of money market instruments (maturities less than one year) such as US Treasury bills, corporate commercial paper or bank certificates of deposit. |
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, click here. Read the prospectus or summary prospectus carefully before investing.
FUND RISKS:
Equity Market Risk. The equity securities underlying the Fund’s option investments may experience sudden, unpredictable drops in value or long periods of decline in value.
Derivatives Risk. The Fund invests in options, which are a form of derivative investment. Derivatives have risks, including the imperfect correlation between the value of such instruments and the underlying assets or index; the loss of principal, including the potential loss of amounts greater than the initial amount invested in the derivative instrument; and illiquidity of the derivative investments. The derivatives used by the Fund may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss.
As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility.
The Fund may invest in fixed income securities directly or through ETFs or other investment companies. Fixed income securities are subject to interest rate risk (discussed further herein), call risk, prepayment and extension risk, credit risk (discussed further herein), and liquidity risk. Interest rates may go up resulting in a decrease in the value of the fixed income securities held by the Fund. Credit risk is the risk that an issuer will not make timely payments of principal and interest. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a smaller number of issuers could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
New Fund Risk. The Fund is a recently organized management investment company with no operating history.
The fund is distributed by Foreside Fund Services, LLC.
Launch & Structure Partner: Tidal ETF Services