$TRES

TRES

$

The Defiance Treasury Alternative Yield ETF

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Distribution Rate *
–%
As of 12/31/2023
Distribution Frequency
Monthly.
30-Day SEC Yield **
–%
As of 12/31/2023
rating

Seek Enhanced 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

Net Assets $3.39M
Premium/discount 0.17%
NAV $19.38
Closing Price $19.42
Shares Outstanding 175,000
Median 30 Day Spread 0.26%
Data as of 02/23/2024

Fund Details

Fund inception 01/24/24
Ticker TRES
Primary Exchange NASDAQ
CUSIP 88636J634
Fund Holdings 9
NAV Symbol TRES.NV
Expense Ratio 0.75%
30 Day SEC Yield* –%
* Yield as of 12/31/23
An Investment in the Fund is not an investment in the Index, nor is the Fund an investment in a traditional passively managed index fund. The Fund’s strategy will cap its potential gains if the Index increases in value. The Fund’s strategy is subject to all potential losses if the Index losses value, which may not be offset by income received by the Fund. The Fund does not invest directly in the Index. The Fund does not invest directly in companies that comprise the Index. Fund shareholders are not entitled to any dividends paid by any companies that comprise the Index.

TRESMarket Price

Performance

YTD 1 Month 3 Months 6 Months 1 Year 3 Years Since Inception
Total Return NAV (%) 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% 0.59%
1 Year Since Inception
Total Return (%) xx.xx% xx.xx%
Market Price (%) xx.xx% xx.xx%
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling 833.333.9383. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Market price is the price at which shares in the ETF can be brought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day.
Name Symbol Stock price % Net assets Shares Held Market Value
United States Treas Bills 05/09/2024 912797HQ3 $98.94 24.91% 854,000 $844,920
United States Treas Nts 0.375% 08/15/2024 91282CCT6 $97.75 24.87% 863,000 $843,602
United States Treas Nts 3.875% 03/31/2025 91282CGU9 $98.85 24.77% 850,000 $840,238
United States Treas Bills 02/27/2024 912797JF5 $99.99 21.14% 717,000 $716,896
Tlt Us 03/22/24 C93.5 TLT 240322C00093500 $1.68 3.85% 780 $130,650
Cash & Other Cash&Other $1.00 1.49% 50,471 $50,471
Tlt Us 03/22/24 P91.5 TLT 240322P00091500 $0.57 1.31% 780 $44,460
Tlt Us 03/08/24 P92.5 TLT 240308P00092500 $0.50 -0.29% -195 $-9,750
Tlt Us 03/08/24 C92.5 TLT 240308C00092500 $1.80 -2.06% -390 $-70,005
Data as of 02/26/2024. Fund holdings are subject to change at any time and should not be considered recommendations to buy or sell any security.
View full holdings

Distribution

Declaration Date Ex-Div Date Record Date Payable Date Amount ($)
2/29/2024 3/1/2024 3/4/2024 3/6/2024 $x
3/28/2024 4/1/2024 4/2/2024 4/4/2024 $x
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 12/31/2023
–%
Distribution Frequency Monthly
30-Day SEC Yield **
As of 12/31/2023
–%