NED DAVIS RESEARCH
SMART SECTOR® ETF
The Day Hagan/Ned Davis Research Smart Sector® ETF seeks long-term appreciation and preservation of capital. Day Hagan Asset Management actively manages the Fund’s portfolio using proprietary investment models co-developed with Ned Davis Research. The Fund seeks to achieve its investment objective by principally investing in unaffiliated equity exchange-traded funds (ETFs) that track the performance of the individual sectors of the S&P 500 Index. The Fund attempts to enhance returns relative to the Index by overweighting and underweighting its exposure to the Sectors relative to the Index and may reduce its overall exposure to ETF’s as determined by its risk management model.
FUND NAME: DAY HAGAN/NED DAVIS RESEARCH SMART SECTOR® ETF
|Benchmark:||S&P 500 Index Total Return||Inception Date:||01/17/2020||Management Style:||Active|
|CUSIP:||86280R803||Total Gross Expense Ratio:||0.78%||Asset Class:||Equity|
|Exchange:||NYSE Arca, Inc.||Advisor:||Day Hagan Asset Management||IOPV Ticker Symbol*:||SSUS.IV|
|AS OF DATE||wdt_ID||NAV ($)**||MARKET PRICE ($) ***||PREMIUM / DISCOUNT (%)||30-DAY MEDIAN BID/ASK SPREAD ****||SHARES OUTSTANDING||TOTAL NET ASSETS||as_of_date||inception_date||related_index||asset_class||category||focus||region||geographic_exposure||currency_exposure||sector_exposure||industry_group_exposure||industry_exposure||etfg_date||fund_ticker||fund_description||fund_cusip||fund_isin||iopv_symbol||etf_issuer||number_of_holdings_in_etf||fund_listing_exchange||fund_gross_expense_ratio||premium_discount_days_q||premium_discount_days_y||two_per_premium_discount_no_of_days||two_per_premium_discount_5_days||two_per_premium_discount_6_days||two_per_premium_discount_7_days||etf_global_reward_score||etf_global_risk_score||development_class||sub_industry_exposure||TOTAL NET ASSETS|
|05/27/2020||1||23.43||23.44||0.040000||0.003200||2,525,000||3,233,594.49||01/08/2020||04/09/2018||null||Equity||Strategy||Theme||Global||US=0.956;IE=0.042||USD=0.999||Financials=0.248;Industrials=0.207;Technology=0.128;Health Care=0.084;Consumer Discretionary=0.083;Utilities=0.083;Consumer Staples=0.082;Communications=0.063;Materials=0.020||Software & Services=0.128;Capital Goods=0.126;Banks=0.104;Utilities=0.083;Insurance=0.082;Health Care Equipment & Services=0.064;Food Beverage & Tobacco=0.062;Diversified Financials=0.061;Retailing=0.042;Telecommunication Services=0.042;Transportation & L||IT Services=0.128;Banks=0.104;Utilities=0.083;Insurance=0.082;Health Care Providers & Services=0.064;Specialty Retail=0.062;Aerospace & Defense=0.061;Electrical Equipment=0.043;Food Products=0.042;Diversified Telecommunication Services=0.042;Diversified F||01/08/2020||VETS||Pacer Military Times Best Employers ETF||69374H832||US69374H8328||IOPV Symbol||Pacer Financial||50||NASDAQ||null||-1.000000||-1.000000||-1.000000||null||null||null||5.810000||5.060000||Blended Development||IT Consulting & Other Services=0.128;Diversified Banks=0.104;Electric Utilities=0.063;Aerospace & Defense=0.061;Electrical Components & Equipment=0.043;Packaged Foods & Meats=0.042;Alternative Carriers=0.042;Consumer Finance=0.041;Property & Casualty Insu||59,160,750.00|
*IOPV, or Indicative Optimized Portfolio Value, is a calculation disseminated by the stock exchange that approximates the Fund’s NAV every fifteen seconds throughout the trading day.
**“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) identify the median of those values.
As of May 27, 2020
PREMIUM / DISCOUNT
SSUS Inception Date: January 17, 2020
SSUS PREMIUM/DISCOUNT - Q1 2020
|wdt_ID||AS OF DATE||PREMIUM/DISCOUNT|
|AS OF DATE||PREMIUM/DISCOUNT|
Daily median NBBO data for the most recent calendar year is not available due to the fund’s limited history. The data will be included when available.
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.
|Effective Date||constituents.etfg_date||Holdings Name||constituents.etf_ticker||Ticker||Market Value %||Market Value||Shares Quantity||Security ID||Security Sedol||Security ISIN||constituents.constituent_figi|
|05/27/2020||05/27/2020||Consumer Discretionary Select Sector SPDR Fund||SSUS||XLY||0.146376||8,660,351.14||69,139||81369Y407||2424341||US81369Y4070||BBG000BJ1MF9|
|05/27/2020||05/27/2020||INDUSTRIAL SELECT SECTOR ETF||SSUS||XLI||0.074831||4,427,405.92||64,408||81369Y704||2502139||US81369Y7040||BBG000BJ2RF7|
|05/27/2020||05/27/2020||Health Care Select Sector SPDR Fund||SSUS||XLV||0.160892||9,519,231.09||94,747||81369Y209||2371823||US81369Y2090||BBG001S7SCQ6|
|05/27/2020||05/27/2020||MATERIALS SELECT SECTOR SPDR||SSUS||XLB||0.029697||1,757,045.91||31,987||81369Y100||2436841||US81369Y1001||BBG000BHNNF7|
|05/27/2020||05/27/2020||Utilities Select Sector SPDR Fund||SSUS||XLU||0.011698||692,143.43||12,031||81369Y886||2371812||US81369Y8865||BBG000BJ7G75|
|05/27/2020||05/27/2020||Energy Select Sector SPDR Fund||SSUS||XLE||0.032942||1,948,999.12||48,652||81369Y506||2402466||US81369Y5069||BBG000BJ20S2|
|05/27/2020||05/27/2020||Consumer Staples Select Sector SPDR Fund||SSUS||XLP||0.071267||4,216,524.45||71,893||81369Y308||2369389||US81369Y3080||BBG000BJ10N8|
|05/27/2020||05/27/2020||REAL ESTATE SELECT SECT SPDR||SSUS||XLRE||0.015170||897,510.70||26,045||81369Y860||BYZ65Y9||US81369Y8600||BBG00B597128|
|05/27/2020||05/27/2020||TECHNOLOGY SELECT SECTOR ETF||SSUS||XLK||0.237333||14,041,855.94||144,851||81369Y803||2369709||US81369Y8030||BBG000BJ7007|
|05/27/2020||05/27/2020||Communication Services Select Sector SPDR Fund||SSUS||XLC||0.121595||7,194,230.88||132,637||81369Y852||BFXHC51||US81369Y8527||BBG00L5F9F38|
|05/27/2020||05/27/2020||FINANCIAL SELECT SECTOR SPDR||SSUS||XLF||0.095796||5,667,814.20||235,570||81369Y605||2364038||US81369Y6059||BBG000BJ29X7|
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.
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.
Day Hagan/Ned Davis Research Smart Sector ETF Fact Sheet (PDF)
Day Hagan/Ned Davis Research Smart Sector ETF Prospectus January 10, 2020 (pdf)
Day Hagan/Ned Davis Research Smart Sector ETF SAI January 10, 2020 (pdf)
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
Portfolio Manager of the Fund
Mr. Regan Teague is a portfolio manager and analyst of the Advisor since graduation from Ashland University (Ohio) in 2012. During his college career, Mr. Teague interned with the Advisor (summer of 2009) and was a member of the Eagle Investment Group – a team of senior finance students that managed part of the college’s endowment fund. Mr. Teague received a B.A. from Ashland University. He received his Chartered Financial Analyst (CFA®) designation in 2019.
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.