TRES
The Defiance Treasury Alternative Yield ETF
Distribution Rate *
Distribution Frequency
30-Day SEC Yield **
Seek Income in Treasuries with Options
Investment Strategy
The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to generate current income by investing in U.S. government securities, including U.S. Treasury Bills and U.S. Treasury Bonds (“Treasuries”) with a targeted portfolio duration of one year or less; and 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.
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.
There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment.
Fund Data and Pricing
Fund Details
TRESMarket Price
Performance
YTD | 1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | Since Inception | |
---|---|---|---|---|---|---|---|---|
Total Return NAV (%) | xx.xx% | -7.08% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | -9.99% |
Market Price (%) | xx.xx% | -7.01% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | -9.96% |
1 Year | Since Inception | |
---|---|---|
Total Return (%) | xx.xx% | xx.xx% |
Market Price (%) | xx.xx% | xx.xx% |
YTD | 1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | Since Inception | |
---|---|---|---|---|---|---|---|---|
Total Return NAV (%) | xx.xx% | -2.89% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | -3.13% |
Market Price (%) | xx.xx% | -3.74% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | -3.18% |
1 Year | Since Inception | |
---|---|---|
Total Return (%) | xx.xx% | xx.xx% |
Market Price (%) | xx.xx% | xx.xx% |
YTD | 1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | Since Inception | |
---|---|---|---|---|---|---|---|---|
Total Return NAV (%) | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | -0.25% |
Market Price (%) | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | xx.xx% | 0.59% |
1 Year | Since Inception | |
---|---|---|
Total Return (%) | xx.xx% | xx.xx% |
Market Price (%) | xx.xx% | xx.xx% |
Top Holdings
Name | Symbol | Stock price | % Net assets | Shares Held | Market Value |
---|---|---|---|---|---|
United States Treasury Bill 05/09/2024 | 912797HQ3 | $99.85 | 25.96% | 797,000 | $795,832 |
United States Treasury Note/bond 0.375% 08/15/2024 | 91282CCT6 | $98.54 | 25.88% | 805,000 | $793,272 |
United States Treasury Note/bond 3.875% 03/31/2025 | 91282CGU9 | $98.81 | 25.56% | 793,000 | $783,548 |
United States Treasury Note/bond 4.5% 11/30/2024 | 91282CFX4 | $99.50 | 20.03% | 617,000 | $613,945 |
Tlt Us 05/10/24 P88.5 | TLT 240510P00088500 | $1.23 | 2.01% | 500 | $61,500 |
Cash & Other | Cash&Other | $1.00 | 0.73% | 22,447 | $22,447 |
First American Government Obligations Fund 12/01/2031 | FGXXX | $100.00 | 0.32% | 9,772 | $9,772 |
Tlt Us 05/10/24 C91 | TLT 240510C00091000 | $0.19 | 0.30% | 500 | $9,250 |
Tlt Us 05/03/24 C89.5 | TLT 240503C00089500 | $0.24 | -0.19% | -250 | $-5,875 |
Tlt Us 05/03/24 P88 | TLT 240503P00088000 | $0.73 | -0.60% | -250 | $-18,250 |
Distribution
Declaration Date | Ex-Div Date | Record Date | Payable Date | Amount ($) | |
---|---|---|---|---|---|
2/29/2024 | 3/1/2024 | 3/4/2024 | 3/6/2024 | $0.2579 | |
3/28/2024 | 4/1/2024 | 4/2/2024 | 4/4/2024 | $0.17 | |
4/30/2024 | 5/1/2024 | 5/2/2024 | 5/6/2024 | $x | |
5/31/2024 | 6/3/2024 | 6/3/2024 | 6/5/2024 | $x | |
6/28/2024 | 7/1/2024 | 7/1/2024 | 7/3/2024 | $x | |
7/31/2024 | 8/1/2024 | 8/1/2024 | 8/5/2024 | $x | |
8/30/2024 | 9/3/2024 | 9/3/2024 | 9/5/2024 | $x | |
9/30/2024 | 10/1/2024 | 10/1/2024 | 10/3/2024 | $x | |
10/31/2024 | 11/1/2024 | 11/1/2024 | 11/4/2024 | $x | |
11/29/2024 | 12/2/2024 | 12/2/2024 | 12/4/2024 | $x | |
12/30/2024 | 12/31/2024 | 12/31/2024 | 1/5/2025 | $x |
Distribution Rate *
As of 03/28/2024 |
11.50% |
Distribution Frequency | Monthly |
30-Day SEC Yield ** As of 03/31/2024 |
4.55% |