Day Hagan Smart Buffer ETF
TICKER: DHSB
Overview
Fund Information
The Day Hagan Smart Buffer ETF’s investment objective is to seek long-term capital appreciation and preservation of capital.
The Fund is an actively managed exchange-traded fund (“ETF”) that, under normal circumstances, seeks to achieve its investment objective principally by investing in U.S.-listed ETFs that replicate the performance of broad-based U.S. equity indexes, such as the S&P 500 Index, or equity securities of companies within such indexes. The fund also utilizes options, and/or options “spreads”, to provide a buffer on losses the underlying index may incur. To help offset the cost of initiating the buffer, covered call options will be sold on the underlying index, creating a “cap” on potential gains.
As the underlying index that the holdings of the Fund track increases in value, it moves further from the initial Buffer level (the level at which the Buffer potentially begins to mitigate losses) and closer to the initial Cap level. This changes the risk/return profile and, therefore, the optimal Buffer and Cap percentages for the Fund. When the ratio of upside potential to downside risk is no longer deemed attractive by the Advisor, the Advisor will seek to “Actively Rebalance” the Fund to establish new Buffer and Cap levels in an attempt to allow the Fund to participate in greater capital appreciation opportunities and/or attempt to provide better downside protection based on the current values of the underlying investments/indexes.
Please refer to the “Principal Investment Strategy” section of the prospectus for more information.
NAME: DAY HAGAN SMART BUFFER ETF
TICKER: DHSB
Benchmark: Bloomberg Barclays US Aggregate Bond Index
Inception Date: 02/13/2025
Management Style: Active
CUSIP: 86280R795
Total Gross Expense Ratio: 0.68%
Asset Class: Hedged US Equity
Exchange: NYSE Arca, Inc.
Advisor: Day Hagan Asset Management
**“Net asset value” or “NAV” is determined by adding up the value of all the assets in the fund, including assets and cash, subtracting any liabilities, and then dividing that value by the number of outstanding shares in the ETF.
***Market Price is defined as the official closing price of the ETF share.
****30-Day Median Bid/Ask Percentage Spread Calculation: Based on Rule 6c-11(c)(1)(v), to calculate the median bid-ask spread the fund, (i) identifies the ETF’s NBBO as of the end of each 10-second interval during each trading day of the last 30 calendar days; (ii) divides the difference between each such bid and offer by the midpoint of the NBBO; and (iii) identifies the median of those values.
*Premium - The number of trading days the ETF's closing price exceeds its NAV.
*NAV - This is determined by adding up the value of all the assets in the fund, including assets and cash, subtracting any liabilities, and then dividing that value by the number of outstanding shares in the ETF.
*Discount - The number of trading days the ETF's closing price is below its NAV.
Premium/Discount - Current Year (2025)
Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares because shares are bought and sold at current market prices.
*Distribution rate is calculated by annualizing the most recent distribution amount paid, excluding special distributions, divided by the closing market price or NAV.
Premium/Discount - Q1 2025
Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares because shares are bought and sold at current market prices.
*Distribution rate is calculated by annualizing the most recent distribution amount paid, excluding special distributions, divided by the closing market price or NAV.
IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. Any negative allocations or allocations in excess of 100% are primarily due to unsettled trade activities.
IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the Prospectus or Summary Prospectus for this and other information. Read it carefully.
Authorized participants (“APs”) may acquire shares in the primary market directly from the ETFs and may tender their shares for redemption directly to the ETFs, at net asset value per share only in Creation Units or Creation Unit Aggregations. Once created, shares of the funds generally trade in the secondary market in amounts less than a Creation Unit.
Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF.
If you are neither a resident nor a citizen of the United States or if you are a non-U.S. entity, the ETF’s ordinary income dividends (which include distributions of net short-term capital gains) will generally be subject to a 30% U.S. federal withholding tax, unless a lower treaty rate applies. For further information, please see each fund’s Prospectus.
Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. Please see each fund’s Statement of Additional Information (SAI) for more information.
FINANCIAL ADVISORS: Please note that not all products may be available for sale at your firm. Please call Day Hagan Asset Management 1-800-594-7930 or your Day Hagan Asset Management Sales contact for more information.
Exchange Traded Funds (ETFs) — A type of investment company that is bought and sold on a securities exchange. ETFs generally represent a portfolio of securities, derivative instruments, currencies or commodities. The risks of owning an ETF generally reflect the risks of owning the underlying securities or commodities the ETF is designed to track. ETFs also have management fees and operating expenses that increase their costs.
Day Hagan Asset Management, its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. Any negative allocations or allocations in excess of 100% are primarily due to unsettled trade activities.
IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the Prospectus or Summary Prospectus for this and other information. Read it carefully.
Authorized participants (“APs”) may acquire shares in the primary market directly from the ETFs and may tender their shares for redemption directly to the ETFs, at net asset value per share only in Creation Units or Creation Unit Aggregations. Once created, shares of the funds generally trade in the secondary market in amounts less than a Creation Unit.
Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF.
If you are neither a resident nor a citizen of the United States or if you are a non-U.S. entity, the ETF’s ordinary income dividends (which include distributions of net short-term capital gains) will generally be subject to a 30% U.S. federal withholding tax, unless a lower treaty rate applies. For further information, please see each fund’s Prospectus.
Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. Please see each fund’s Statement of Additional Information (SAI) for more information.
FINANCIAL ADVISORS: Please note that not all products may be available for sale at your firm. Please call Day Hagan Asset Management 1-800-594-7930 or your Day Hagan Asset Management Sales contact for more information.
Exchange Traded Funds (ETFs) — A type of investment company that is bought and sold on a securities exchange. ETFs generally represent a portfolio of securities, derivative instruments, currencies or commodities. The risks of owning an ETF generally reflect the risks of owning the underlying securities or commodities the ETF is designed to track. ETFs also have management fees and operating expenses that increase their costs.
Day Hagan Asset Management, its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
Meet the Managers
Day Hagan Asset Management, a Florida limited liability company located in Sarasota, FL, serves as investment advisor to the Fund. The Advisor was formed in 2004 and provides financial services for individuals, institutions and financial advisors around the country. The Advisor is responsible for formulating the Fund’s investment policies, making ongoing investment decisions and directing portfolio transactions.
Donald L. Hagan, CFA
Portfolio Manager of the Fund
Mr. Donald Hagan, CFA, is a managing member and partner of the Advisor. Mr. Hagan has served in those roles since September 2004 when the Advisor was registered with the SEC. Prior to founding the Advisor, from 2001 – 2004, Mr. Hagan was Senior Vice President and Senior Portfolio Manager at Wells Fargo Bank’s Private Client Services. Prior to Wells Fargo, Mr. Hagan served as Director of Research and Portfolio Manager for SCI Capital Management from 1996–2001. SCI was acquired by Wells Fargo in early 2001. Prior to being recruited as Director of Research for SCI, Mr. Hagan was Chief Sector Analyst and Editor for Ned Davis Research, Inc. Mr. Hagan has a B.A. in Economics and is a Chartered Financial Analyst.
Arthur S. Day
Portfolio Manager of the Fund
Mr. Arthur Day is a managing member and partner of the Advisor. Mr. Day has served in those roles since April 2006. Prior to joining the Advisor, from 1993 until 2006, Mr. Day served as a First Vice President at Paine Webber, which was acquired by UBS in 2001. From 1987 until 1993, he was a financial adviser at E.F. Hutton. Mr. Day’s investment career began in 1984 as an account executive with Dean Witter Reynolds. Mr. Day has a B.A. in Business.
Regan Teague, CFA, CFP
Portfolio Manager of the Fund
Regan Teague joined the advisor in 2012 and currently serves as a portfolio manager and senior investment officer. He has an extensive background in equity valuation, derivatives analysis, portfolio construction and attribution/sensitivity analysis. Mr. Teague received a B.A. from Ashland University in 2010 earned his Chartered Financial Analyst (“CFA”) designation in 2019 and his Certified Financial Planner (“CFP”) designation in 2021.
DISCLOSURES
What I Should Know Before Investing
The Fund is newly organized, with a limited history of operations. Equity securities are subject to price fluctuation and possible loss of principal. In addition to investments in large-capitalization companies, investments may be made in speculative and/or small-cap and mid-cap companies which involve a higher degree of risk and volatility than investments in larger, more established companies. Investments may also be made in depository receipts and other securities of non-U.S. companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards. These risks are magnified in emerging markets. Active management and diversification do not ensure gains or protect against market declines.
Derivatives may be more sensitive to changes in market conditions and may amplify risks.
ETFs that the Fund may invest in are subject to market, economic and business risks that may cause their prices to fluctuate. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs. Because the Fund invests in ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value (‘NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares.
All ETFs carry a certain amount of risk. As with any ETF, there is no guarantee that the Fund will achieve its objective. Investment markets are unpredictable and there will be certain market conditions where the Fund will not meet its investment objective and will lose money. The Fund’s net asset value, market price, and returns will vary and you could lose money on your investment in the Fund and those losses could be significant. An investment in the Fund is not a complete investment program. These risks affect the Fund directly as well as through the Underlying Funds in which it invests.
The Day Hagan/Ned Davis Smart Sector® ETF is distributed by Foreside Fund Services, LLC.