FAQ

FREQUENTLY ASKED QUESTIONS


  • addWhat is an Actively Managed ETF
    An actively managed ETF may or may not have a benchmark index, and managers may change sector allocations, market-time trades or deviate from the index as they see fit. This produces investment returns that will not perfectly mirror the benchmark index.
  • addWhat is Tactical-Asset Allocation
    Tactical asset allocation (TAA) is a dynamic investment strategy that actively adjusts a portfolio's asset allocation. The goal of a TAA strategy is to improve the risk-adjusted returns of passive management investing.
  • addWhat is the Hull Tactical Asset Allocation ETF
    The Hull Tactical Asset Allocation Fund is an actively managed ETF. Guided by our proprietary, patent-pending, quantitative trading model, we take long and short positions in ETFs that seek to track the performance of the S&P 500, as well as leveraged ETFs or inverse ETFs that seek to deliver multiples, or the inverse, of the performance of the S&P 500 as well as futures. Our goal for our investors is simple: seeks to achieve long-term growth from investments in the U.S. equity and Treasury markets, independent of market direction, while outperforming the S&P 500 with lower volatility.
  • addWhat is the maximum long position and maximum short position of the fund
    Maximum long is 200% invested and maximum short is -100% invested.
  • addWhat is the expected leverage
    We expect the fund's exposure to the S&P 500 to range between -10% and 130%, 90% of the time.
  • addHow would HTUS compliment an existing portfolio
    HTUS is an alternative ETF strategy. Alternative investments can have a low correlation to more traditional asset classes and The Fund can be utilized to provide volatility reduction, reduce factor bias, and provide diversification from the S&P 500. Diversification attempts to reduce unsystematic risk – a risk related to a particular stock, industry, or market segment – and is often the main factor of investing in alternative strategies.
  • addHow often does the funds exposure change
    The target position is updated daily and the parameters are expected to be refitted every 20 days using 12 years of data. The model selects the indicators that best predict the next 6 months return of the S&P 500. The funds exposure changes daily.
  • addWhat controls are built around the model
    There are a number of automated controls: Overall position limits are enforced. Each variable has its own contribution limit. The execution is optimized to reduce excess trading. In addition to the automated controls, there is daily oversight on the signals produced and trader discretion is permitted.
  • addWhat is the benchmark upon which you measure success of the fund strategy
    The fund aims to outperform the S&P 500 over the market cycle, while targeting no more than 100% of the long-term volatility of this index.
  • addHow does portfolio turnover impact returns and tax consequences for ETFs
    The sale of securities by a fund manager may trigger capital gains distributions to shareholders. Therefore, funds that experience higher portfolio turnover are generally less tax efficient than those that buy and hold securities for longer periods. Index strategies generally have lower portfolio turnover than actively managed strategies. Because of this, HTUS may be best suited for tax-advantaged investment accounts.

Neither Hull Tactical Asset Allocation, LLC nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.


Diversification does not ensure a profit

HTAA, LLC serves as the investment adviser. The Funds are distributed by Northern Lights Distributors, LLC (4221 North 203rd Street, Suite 100, Elkhorn, NE 68022) Check the background of Northern Lights Distributors, LLC on FINRA’s BrokerCheck.