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Trending ETFs

Name

As of 05/20/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$17.22

$3.11 M

11.84%

$2.04

0.75%

Vitals

YTD Return

N/A

1 yr return

N/A

3 Yr Avg Return

N/A

5 Yr Avg Return

N/A

Net Assets

$3.11 M

Holdings in Top 10

98.6%

52 WEEK LOW AND HIGH

$17.2
$17.14
$20.50

Expenses

OPERATING FEES

Expense Ratio 0.75%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A


Min Investment

Standard (Taxable)

N/A

IRA

N/A


Fund Classification

Fund Type

Exchange Traded Fund


Name

As of 05/20/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$17.22

$3.11 M

11.84%

$2.04

0.75%

TRES - Profile

Distributions

  • YTD Total Return N/A
  • 3 Yr Annualized Total Return N/A
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio N/A
DIVIDENDS
  • Dividend Yield 11.8%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    Defiance Treasury Alternative Yield ETF
  • Fund Family Name
    N/A
  • Inception Date
    Jan 25, 2024
  • Shares Outstanding
    N/A
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US

Fund Description

The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to generate current income by:

(i) investing in U.S. government securities, including U.S. Treasury bills, U.S. Treasury notes, and U.S. Treasury bonds (collectively, “Treasuries”) with a targeted portfolio duration of one year or less; and
(ii) employing defined risk option strategies. These strategies include credit spreads, debit spreads, long calls, and long puts. To implement these risk strategies, the Fund will purchase and sell option contracts on selected exchange-traded Treasury funds (“Treasury ETFs”). The Fund will not invest directly in Treasury ETFs.

The Fund’s net asset holdings will generally be invested as follows:

2-5% Cash and cash equivalents.
80-100% Treasuries.
up to 100% in options contracts (using Treasuries as collateral).

For its options contract holdings, the Fund may invest up to 100% of its net assets using a combination of options strategies, subject to the following ranges: 

0-50% in debit spreads, calendar spreads, diagonal spreads, and/or puts and calls on Treasury ETFs.
0% - 80% in credit spreads.

Defined Risk Options Strategies

The Fund’s investment strategy is primarily driven by its options strategies. The Fund will primarily invest in options strategies involving Treasury ETFs, allocating up to 50% of its net assets to long option positions, debit spreads, calendar spreads, and diagonal spreads (each, based on the net premium). The Fund will also allocate up to 80% of its net assets to credit spreads (using Treasury securities as collateral).

ZEGA Financial, LLC (“ZEGA”), the Fund’s investment sub-adviser, tactically implements these options strategies. ZEGA assesses Treasury ETF options pricing against current market conditions, heavily weighing factors such as interest rates, the shape of the yield curve (focusing on the longer end), and bond market volatility.

The Fund adopts a defined risk management approach to its options trading, meaning all options are covered. The Fund does not engage in uncovered (“naked”) options trading. Each options position is part of a defined risk strategy, either pairing two options to set clear boundaries for potential gains and losses from the outset or using long individual options. The maximum risk level for each option spread can range from 20% to 80%, depending on the options’ time to expiration. For individual long calls or puts, the risk is limited to the premium paid.

ZEGA constructs a portfolio for the Fund designed to reduce interest rate volatility by analyzing market data to determine the timing and levels for placing options trades. The Fund’s holdings may include bullish, bearish, or neutral credit and debit spreads, as well as long put and call options. When appropriate, the Fund can maintain positions with both bullish and bearish leanings.

The following outlines the differing options strategies that the Fund will implement based on ZEGA’s analyses.

Option Spread Strategies Overview: The Fund uses vertical spreads and calendar spreads, including diagonal spreads. Vertical spread (both credit and debit) strategies involve simultaneously buying and selling options of the same type (puts or calls) on Treasury ETFs with the same expiration date but at different exercise (“strike”) prices. The key distinction between a credit spread and a debit spread lies in the initial financial impact: credit spreads generate upfront income (a net credit), while debit spreads involve an upfront expense (a net debit). The Fund also employs calendar spreads where the short option expires prior to the long option. The exercise (“strike”) may be the same or different.
Vertical Credit Spreads: In this strategy, the Fund earns an initial income (net credit) because it sells an option at a higher premium and simultaneously buys another at a lower premium. The option sold is nearer to the current market price (“closer to the money”), whereas the option bought is further away. Typically, ZEGA resorts to credit spreads when it anticipates minimal movement in Treasury ETF prices, either stable or slightly fluctuating. This strategy leans towards a neutral stance with a hint of bullish or bearish potential.

The maximum profit for the Fund is the initial net credit received, while the maximum loss is calculated by subtracting the initial credit from the difference between the strike prices.

Vertical Debit Spreads: This strategy leads to an initial expense (net debit) for the Fund because it buys an option at a higher premium and sells another at a lower premium. Here, the option bought is nearer to the market price (“closer to the money”), while the option sold is more distant. ZEGA typically employs debit spreads when it holds a moderately positive or negative outlook on Treasury ETFs.

The Fund’s maximum profit is the difference between the strike prices minus the initial debit. In contrast, the maximum loss is confined to the initial debit paid.

Calendar/Diagonal Spreads: In this strategy, the Fund implements an options strategy involving long and short positions on the same asset (in this case, Treasury ETFs) with differing expiration dates. Ordinarily, the Fund purchases a contract with a longer-term expiration and sells one with a nearer-term expiration. When the strike prices vary, this is known as a diagonal spread. Calendar spreads maintain consistency by using the same type of option (put or call) for both positions.
Long Put Options Strategy Overview: The Fund may adopt a long put option strategy, particularly when ZEGA anticipates a decline in the price of a Treasury ETF—a bearish outlook. The risk associated with this strategy is confined to the premium paid for the option. This approach serves as a protective measure against potential drops in value while also offering the potential for profit if the ETF’s price indeed falls. The most significant gain achievable with this strategy is limited to the value of the underlying Treasury ETF dropping to zero.
Long Call Options Strategy Overview: The Fund might implement a long call option strategy when ZEGA foresees an increase in a Treasury ETF’s price—reflecting a bullish stance. The risk here is also restricted to the option’s premium. This strategy not only hedges against potential downside loss but also opens up opportunities for profit in the event of a price rise. Unlike the long put, the maximum gain for a long call is theoretically boundless, as the ETF’s price could climb indefinitely. However, the maximum loss remains limited to the premium paid for the option.

For more information on credit spreads, debit spreads, and options terminology, see the section of the Fund’s Prospectus titled “Additional Information About the Fund.”

ZEGA uses options spreads on Treasury ETFs, coupled with long put and call options strategies on Treasury ETFs, aiming for income generation and capital gains across different interest rate environments. The Fund seeks to earn income from favorable discrepancies between premiums at the start of options positions, and any beneficial movement of the underlying Treasury ETF prices relative to the options’ strike prices until expiration. This consolidated strategy seeks to generate income across a variety of interest rate scenarios, striving for a more stable and risk-adjusted performance.

All option positions held by the Fund are exchange-traded and collateralized with cash and cash equivalents (for example, Treasuries and money market fund shares)

Under normal market conditions, the Fund will invest at least 80% of its assets, plus borrowings for investment purposes, in Treasuries. In pursuing its options strategies, the Fund may also allocate up to 80% of its net assets to credit spreads. Concurrently, the Fund may invest up to 50% of its net assets to a combination of debit spreads, calendar spreads, diagonal spreads, and long calls and/or puts on Treasury ETFs. Collectively, the Fund’s total investment in options strategies will not exceed 100% of the Fund’s net assets.

The Fund is “non-diversified” for purposes of the 1940 Act, which means that the Fund may invest in fewer issuers at any one time than a diversified fund.

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TRES - Performance

Return Ranking - Trailing

Period TRES Return Category Return Low Category Return High Rank in Category (%)
YTD N/A N/A N/A N/A
1 Yr N/A N/A N/A N/A
3 Yr N/A* N/A N/A N/A
5 Yr N/A* N/A N/A N/A
10 Yr N/A* N/A N/A N/A

* Annualized

Return Ranking - Calendar

Period TRES Return Category Return Low Category Return High Rank in Category (%)
2023 N/A N/A N/A N/A
2022 N/A N/A N/A N/A
2021 N/A N/A N/A N/A
2020 N/A N/A N/A N/A
2019 N/A N/A N/A N/A

Total Return Ranking - Trailing

Period TRES Return Category Return Low Category Return High Rank in Category (%)
YTD N/A N/A N/A N/A
1 Yr N/A N/A N/A N/A
3 Yr N/A* N/A N/A N/A
5 Yr N/A* N/A N/A N/A
10 Yr N/A* N/A N/A N/A

* Annualized

Total Return Ranking - Calendar

Period TRES Return Category Return Low Category Return High Rank in Category (%)
2023 N/A N/A N/A N/A
2022 N/A N/A N/A N/A
2021 N/A N/A N/A N/A
2020 N/A N/A N/A N/A
2019 N/A N/A N/A N/A

TRES - Holdings

Concentration Analysis

TRES Category Low Category High TRES % Rank
Net Assets 3.11 M N/A N/A N/A
Number of Holdings 9 N/A N/A N/A
Net Assets in Top 10 3.34 M N/A N/A N/A
Weighting of Top 10 98.63% N/A N/A N/A

Top 10 Holdings

  1. United States Treasury Bill 24.94%
  2. United States Treasury Note/Bond 24.90%
  3. United States Treasury Note/Bond 24.78%
  4. United States Treasury Note/Bond 19.77%
  5. iShares 20+ Year Treasury Bond ETF 4.00%
  6. First American Government Obligations Fund 1.49%
  7. iShares 20+ Year Treasury Bond ETF 0.91%
  8. iShares 20+ Year Treasury Bond ETF -0.15%
  9. iShares 20+ Year Treasury Bond ETF -2.01%

Asset Allocation

Weighting Return Low Return High TRES % Rank
Bonds
94.38% N/A N/A N/A
Cash
2.86% N/A N/A N/A
Other
2.76% N/A N/A N/A
Stocks
0.00% N/A N/A N/A
Preferred Stocks
0.00% N/A N/A N/A
Convertible Bonds
0.00% N/A N/A N/A

Bond Sector Breakdown

Weighting Return Low Return High TRES % Rank
Derivative
2.76% N/A N/A N/A
Cash & Equivalents
1.49% N/A N/A N/A
Securitized
0.00% N/A N/A N/A
Corporate
0.00% N/A N/A N/A
Municipal
0.00% N/A N/A N/A
Government
0.00% N/A N/A N/A

Bond Geographic Breakdown

Weighting Return Low Return High TRES % Rank
US
94.38% N/A N/A N/A
Non US
0.00% N/A N/A N/A

TRES - Expenses

Operational Fees

TRES Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 0.75% N/A N/A N/A
Management Fee 0.75% N/A N/A N/A
12b-1 Fee N/A N/A N/A N/A
Administrative Fee N/A N/A N/A N/A

Sales Fees

TRES Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A N/A N/A N/A
Deferred Load N/A N/A N/A N/A

Trading Fees

TRES Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A N/A N/A N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

TRES Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A N/A N/A N/A

TRES - Distributions

Dividend Yield Analysis

TRES Category Low Category High TRES % Rank
Dividend Yield 11.84% N/A N/A N/A

Dividend Distribution Analysis

TRES Category Low Category High Category Mod
Dividend Distribution Frequency Monthly

Net Income Ratio Analysis

TRES Category Low Category High TRES % Rank
Net Income Ratio N/A N/A N/A N/A

Capital Gain Distribution Analysis

TRES Category Low Category High Capital Mode
Capital Gain Distribution Frequency

Distributions History

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TRES - Fund Manager Analysis

Tenure Analysis

Category Low Category High Category Average Category Mode
N/A N/A N/A N/A