The investment objective of the Stance Equity ESG Large Cap Core ETF (the “Fund”) is to achieve long-term capital appreciation.
The Fund is an actively managed exchange-traded fund (“ETF”) that will invest, under normal circumstances at least 80% of the value of its net assets (plus the amount of any borrowings for investment purposes) in exchange-traded equity securities of U.S. large capitalization issuers that meet environmental, social, and governance (“ESG”) standards, as determined and in the sole discretion of Stance Capital, LLC. The Fund currently considers companies within the Russell 1000® Index and S&P 500® Index to be large capitalization issuers.
In identifying investments for the Fund, Stance utilizes three independent processes. First, we apply a rules-based methodology to the universe of large capitalization companies and identifies companies that successfully manage in Stance’s view and in its sole discretion sustainability-related key performance indicators (“KPIs”) such as energy productivity, carbon intensity, water dependence, waste profile and KPIs relating to governance, including capacity to innovate, unfunded pension fund liabilities, chief executive officer/average worker pay, safety performance, employee turnover, leadership diversity, percentage tax paid, and percent of bonus linked to sustainability performance. Companies who have engaged exclusively or primarily in weapons, tobacco, or thermal coal, may be excluded from consideration. Second, we apply a machine learning model which uses financial, risk, and other factors to identify companies that in our view, based on our sole discretion are most likely to outperform both in absolute returns and in risk adjusted returns over the next quarter. Finally, the portfolio is optimized to attempt to minimize tail risk and maximize diversification.
The performance quoted represents past performance and does not guarantee future results. Performance for periods greater than 1 year is annualized. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Current performance may be lower or higher than the performance quoted. The Stance Equity ESG Large Cap Core ETF’s inception date was March 16, 2021.
Shareholders may pay more than NAV when buying fund shares and receive less than NAV when selling fund shares, because shares are bought and sold at current market prices. The performance quoted represents past performance and does not guarantee future results. The net asset value (“NAV”) of the Fund’s shares is determined as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time) each day the NYSE is open. Share are purchased and sold in secondary market transactions at negotiated market prices rather than at NAV. Shares of the Fund may be bought and sold throughout the day on the exchange through a brokerage account. However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants in very large creation/redemption units. Shares may trade at, above or below NAV. Brokerage commissions will reduce returns.
Holdings are subject to change.
Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Current and future portfolio holdings are subject to risk.
Before investing in the Stance Equity ESG Large Cap Core ETF (the “Fund”), consider the Fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, please visit www.stancecap.com, call (617) 875-1062, or download a prospectus now, or talk to your financial advisor. Read it carefully before investing.
The Fund’s Investments are not individually redeemable. Investors buy and sell shares of the Fund on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 5,000 shares.
Because the Shares are traded in the secondary market, a broker may charge a commission to execute a transaction in the Shares, and an investor also may incur the cost of the spread between the price at which a dealer will buy the Shares and the somewhat higher price at which a dealer will sell the Shares.
The Portfolio Reference Basket is not expected to represent the actual portfolio of the Fund because the weightings of the securities in the Portfolio Reference Basket generally are different from the weightings of the securities in the actual portfolio.
The Guardrail Amount is the maximum deviation between the weightings of the specific securities in the Portfolio Reference Basket and the weightings of those specific securities in the Actual Portfolio, as well as between the weighting of the respective cash positions. The Guardrail Amount is intended to ensure that no individual security in the Portfolio Reference Basket will be overweighted or underweighted by more than the publicly disclosed percentage when compared to the actual weighting of each security within the Actual Portfolio as of the beginning of each trading day. The Guardrail Amount is designed to help investors evaluate the risk of tracking error, which is the degree to which the performance of the Portfolio Reference Basket deviates from the performance of the Actual Portfolio.
Although the Portfolio Reference Basket is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the Fund at or close to the underlying NAV per Share of the Fund, there is a risk (which may increase during periods of market disruption or volatility) that market prices will vary significantly from the underlying NAV of the Fund.
The Fund's bid-ask spreads and premiums/discounts may be larger than those for traditional ETFs due to the lack of transparency, thus making trading in the Fund's shares more expensive.
Diversification does not eliminate the risk of experiencing investment loss.
Market participants may attempt to reverse engineer a Fund’s trading strategy, which, if successful, could increase opportunities for trading practices that may disadvantage the Fund and its shareholders.
The Fund is subject to certain other risks, including but not limited to, equity securities risk, large-capitalization risk, market risk, active strategy risk, and market trading risk. Investing involves risk, including possible loss of principal. Gains or losses on a single stock may have a greater impact on the Fund. For these and other reasons, there is no guarantee the Fund will achieve its stated objective.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Investors may purchase or sell individual shares on an exchange on which they are listed. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Please see the prospectus for more details.
The Stance Equity ESG Large Cap Core ETF is the property of Stance Capital LLC and Red Gate Advisers, LLC. The content of this web site is intended for information purposes only. No portion of the content should be considered a solicitation to buy or an offer to sell shares of the fund in any jurisdiction where the solicitation or offer would be deemed unlawful under the securities laws of such jurisdiction.
The Stance Equity ESG Large Cap Core ETF is distributed by Vigilant Distributors, LLC, member of FINRA and SIPC.
Not FDIC Insured • No Bank Guarantee • May Lose Value.