The LeaderShares® Dynamic Yield ETF seeks current income. The Fund is an actively managed exchange traded fund (“ETF”) that employs a top-down investment process driven by a quantitative model process that incorporates various fundamental and technical inputs to help the Adviser determine the most attractive sectors and segments of the bond market from a risk-reward perspective. The Adviser utilizes its quantitative research models to seek to identify when the opportunities for yield from increased credit risk and/or duration risk is sufficient to compensate for the relative risk of those exposures as compared to lower credit risk and/or shorter duration risk, and when to take more defensive positions if the yield premium relative to risk is less attractive due to greater risk of loss or downside volatility. The Fund normally invests, directly or indirectly, at least 80% of its net assets, including any borrowings for investment purposes, in a diversified portfolio of fixed income instruments. The Fund is not managed relative to an index and has broad flexibility to allocate its assets across different types of securities and sectors of the fixed income markets. The principal investments of the Fund include corporate bonds, U.S. government and agency securities, private debt, foreign sovereign bonds, convertible securities, bank loans, asset-backed securities, mortgage-backed securities, and cash equivalent instruments. The Fund may also invest in other investment companies, including other exchange-traded funds.
The Fund may invest in fixed income instruments with fixed or adjustable (floating) rates. The Fund does not seek to maintain any particular weighted average maturity or duration, and may invest in fixed income instruments of any maturity or duration. The Fund will invest in both investment grade and below investment grade (often referred to as “high yield” or “junk” bonds) securities. The Fund will typically invest a substantial portion of the Fund’s investments in securities of issuers with a range of credit ratings. The Fund may invest up to 50% of its net assets in high yield securities. The Fund may invest without limit in U.S. and non-U.S. dollar-denominated securities of U.S. and foreign issuers, including investing up to 20% of its net assets in issuers located in emerging market countries. The Fund may also invest in various types of derivatives, including futures, options, credit default swaps, total return swaps and repurchase agreements. The Fund may use derivatives as a substitute for making direct investments in underlying instruments or to reduce certain exposures.
The number of sectors in which the Fund is invested in at any time may vary based upon market and economic conditions and other factors. During periods that Redwood Investment Management, LLC (the “Adviser”) identifies as above average risk, such as when risk of loss in the non-Treasury bond sectors are elevated or when significant market disruption occurs, the Fund may invest up to 100% of its net assets in U.S. government securities of the same maturity.
The Fund may engage in active and frequent trading.
| Ticker | DYLD |
|---|---|
| Category | Fixed-Income |
| Primary Exchange | NYSE Arca |
| CUSIP | 90214Q717 |
| Gross Expense Ratio | 0.75% |
| Shares Outstanding | 3250000 |
| $ Total Net Assets | 72404949.91 |
| Days Traded At Premium |
Days Traded At Discount |
|
|---|---|---|
| Year 2023 | 130 | 82 |
| Q1 2024 | 9 | 42 |
| Name | Net Asset % |
|---|---|
| B 05/09/24 | 21.06 |
| B 07/05/24 | 13.20 |
| B 05/30/24 | 6.98 |
| T 1 1/2 02/15/25 | 4.62 |
| BBH SWEEP VEHICLE | 1.78 |
| Receivables/Payables | 0.34 |
| VERITS 7 1/2 09/01/25 | 0.28 |
| DISH 5 7/8 11/15/24 | 0.27 |
| TIBX 9 09/30/29 | 0.26 |
| CCL 6 05/01/29 | 0.25 |
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® Dynamic Yield 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® Dynamic Yield 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”).
5307-NLD-6/28/2021