| Investment Objective: |
The Fund is an actively managed ETF that seeks to achieve its objective by attempting to provide a tax efficient return stream through investments in options, total return swaps, Treasury Bills and/or box spreads as opposed to traditional bond investments. The ETF is a next-generation bond alternative designed to outperform the Bloomberg U.S. Aggregate Bond Index while enhancing tax efficiency. By employing dynamic options-based strategies, DEFR replicates bond-like exposures, risks, and correlations, offering what we believe is a compelling allocation for taxable and non-taxable accounts. The Index is unmanaged and measures the investment grade, U.S. dollar-denominated fixed-rate taxable bond market, with index components for government and corporate securities, asset-backed securities, and mortgage pass-through securities. The Fund will purchase at-the-market call options and sell at-the-market put options on the same Treasury ETF issuer to achieve notional long exposure to the particular Treasury ETF issuer, and thus achieve a synthetic exposure to Treasuries. The Fund gains exposure to the spread component of a traditional bond allocation by selling (writing) put options with a notional value expected to align with the return profile of bond spreads over time. |
