FAQ

FREQUENTLY ASKED QUESTIONS


  • addWhat is an exchange-traded fund (ETF)?
    An exchange-traded fund (ETF) is a basket of securities whose shares are traded on an exchange. ETFs are bought and sold by a broker.
  • addHow does ETF and Mutual Fund trading differ?
    Mutual funds are bought and sold directly from the mutual fund company at the current day’s closing price, the NAV (Net Asset Value) calculated for the fund at the end of the day. ETFs are traded throughout the day at the current market price, like a stock, and may cost more or less than NAV, which is calculated throughout the day. In mutual funds, transaction fees may include sales loads (or sales charges) or redemption fees. These are paid directly by investors. ETF transactions may include brokerage commissions (There may be fees to open and maintain a brokerage account), which are paid directly by investors.
  • addHow do I buy and sell ETFs?
    ETFs are listed with ticker symbols in the same way as individual stocks. They can be bought or sold throughout the day by a full service or discount broker. A brokerage commission to buy or sell will usually apply.
  • addWhat is the minimum-sized ETF purchase?
    Investors can purchase as little as one share although the brokerage firm may have higher account minimums.
  • 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 underlying 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 (HTUS)?
    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 max short position of the fund?
    Maximum long is 200% invested and maximum short is -100% invested.
  • addWhat is the average expected leverage?
    We expect the fund's exposure to the S&P 500 to range between -24% and 110% 90% of the time.
  • addHow would HTUS compliment an existing portfolio?
    HTUS is an alternative ETF strategy. Incorporating alternative investments into a traditional portfolio may help you to reduce overall volatility while increasing portfolio diversification. Seventy-seven percent of advisors state that diversification is still the top driver of investment in alternative strategies. Sixty percent of advisors allocate between 6% and 20% to alternatives, while a large portion of institutions (18%) allocate more than 40% to alternatives.
    Source: ETF Trends - How an Alternative ETF Strategy Fits in Investment Portfolios, 10/30/2014
  • addHow often does the funds exposure change?
    {% comment %} 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. {% endcomment %}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 S&P500 over the market cycle, while targeting 80% 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.

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

Exchange Traded Concepts, LLC serves as the investment adviser. HTAA, the investment sub-adviser, and Vident Investment Advisory LLC, the trading sub-adviser, serve as sub-advisers. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates. Check the background of SIDCO on FINRA’s BrokerCheck.