LeaderShares® Equity Skew ETF
Objective

The LeaderShares ® Equity Skew ETF (the “Equity Skew ETF” or the “Fund”) seeks to generate long-term capital growth. The Fund is an actively managed exchange traded fund (“ETF”) that normally invests at least 80% of its net assets, including any borrowings for investment purposes, in equity securities. The Fund defines equity securities to include investments in other investment companies, such as ETFs, that invest primarily in equity securities. The Fund employs a contrarian strategy seeking to buy underperforming asset classes and/or factors and sell outperforming asset classes and/or factors based on quantitative research. The primary equity style exposure and factors are large cap growth, large cap value, small cap growth, small cap value, and emerging market equities. The weightings to these equity style exposures represented by equity securities, are determined using proprietary quantitative methodologies that include statistical skew. Skew or skewness measures the asymmetry of a return distribution between different constituents in a group. Measuring the skewness allows the Adviser to take five groups of stocks (Large Cap Growth, Large Cap Value, Small Cap Growth, Small Cap Value and Emerging Markets) and determine the relative weightings of each of these five groups based on how recent returns of such group fits into its historical distribution of returns. This measure of skewness generally leads to security groups that have recently outperformed to have reduced exposure and security groups that have recently underperformed to have increased exposure at each re-balance. The Fund will invest in equity securities with a market capitalization of at least $1 billion.

The Fund may have a higher degree of portfolio turnover than funds that seek to replicate the performance of an index. The Fund may engage in active and frequent trading.

Highlights
  • Seeks to be exposed in following asset classes while utilizing a dynamic weight based on skew: U.S. Large Cap Value, U.S. Large Cap Growth, U.S. Small Cap Value, U.S. Small Cap Growth, Emerging Markets.
Fund Facts
Ticker SQEW
Category U.S. Equities
Primary Exchange NYSE Arca
CUSIP 90214Q683
Gross Expense Ratio 0.75%
Shares Outstanding 2125000
$ Total Net Assets 60293052.36
Premium Discount
Last Quarter
Top Ten Holdings2 as of 09/17/20
Name Net Asset %
SPDR S&P 600 Small CapValue ETF 31.46
SPDR Portfolio Emerging Markets ETF 23.27
SPDR S&P 600 Small Cap Growth ETF 17.99
US DOLLARS 2.12
Berkshire Hathaway, Inc. 0.93
US DOLLAR BROKER 0.84
SPDR Portfolio S&P 500 Growth ETF 0.70
Johnson & Johnson 0.69
Walmart, Inc. 0.68
Procter & Gamble Company (The) 0.58

Download List of All Holdings

1Market Price or Bid/Ask Midpoint as of market close.

2Holdings 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 480-757-4277, or visit www.leadersharesetfs.com.  Read it carefully.   

The LeaderShares® Equity Skew 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® Equity Skew 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 Inspire 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”).

3585-NLD-5/13/2020