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 2400000
$ Total Net Assets 89802966.14
Premium Discount
Last Quarter
Last Year
Days Traded
At Premium
Days Traded
At Discount
Year 2020 69 80
Q1 2021 24 26
Q2 2021 39 17
Top Ten Holdings3 as of 07/23/21
Name Net Asset %
SPDR S&P 600 SMALL CAP GR 37.58
SPDR S&P 600 SMALL CAP VA 33.42
US DOLLARS 1.82
SPDR PORTFOLIO S&P 500 GR 1.06
SPDR PORTFOLIO EMERGING M 0.97
JPMORGAN CHASE 0.91
WALT DISNEY CO 0.66
BANK OF AMERICA 0.58
JOHNSON&JOHNSON 0.55
EXXON MOBIL CORP 0.50

Download List of All Holdings

1Beginning November 2, 2020, market price returns are calculated using the closing price and account for distributions from the funds.  Prior to November 2, 2020, market price returns were calculated using the midpoint price and accounted for distributions from the fund.  The midpoint is the average of the bid-ask prices at 4:00 PM ET (when NAV is normally determined for most funds).

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 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 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”).

3585-NLD-5/13/2020