Overlay Shares Small Cap Equity Fund (OVS)

Overview

The fund is a cutting-edge financial vehicle designed for investors seeking to capitalize on the dynamism of U.S. small-cap equity securities. As an actively-managed exchange-traded fund (ETF), it employs a multifaceted investment strategy that sets it apart from traditional investment funds. At its core, the fund’s objective is to generate sustainable income while aiming for capital appreciation by embedding itself within the intricate landscape of U.S. small-cap equities, a sector known for its potential to offer high growth returns. The fund's approach to achieving its investment objective is twofold, employing a mix of direct investment in small-cap equities and sophisticated option trading strategies to enhance its income-generating capabilities.

Products and Services

• Investment in ETFs and Direct Securities:

  The fund strategically invests in a selection of one or more ETFs targeted at the U.S. small-cap equity sector, or directly in the securities comprising such ETFs. This allows the fund to tap into the growth potential of small-cap companies across a breadth of industries within the U.S. economy. By diversifying its portfolio across various ETFs and direct equities, the fund aims to mitigate risk while positioning itself to capture the upside potential of this vibrant market segment.

• Options Trading for Income Generation:

  To supplement the investment income, the fund engages in the sale and purchase of listed short-term put options. This strategy is designed to generate additional income for the fund, providing a steady cash flow that can enhance the overall returns to investors. Put options trading involves significant skill and risk management, and the fund leverages the expertise of its management team to navigate this complex market. By incorporating options trading into its income strategy, the fund aims to deliver a more attractive income profile in combination with the growth prospects of its equity investments.