Overlay Shares Short Term Bond Fund (OVT)

Overview

The fund represents an actively-managed Exchange-Traded Fund (ETF) primarily focused on achieving its investment goals by engaging in a dual-strategy approach. This approach encompasses investing in a selection of other ETFs that aim to replicate the performance of short-term, investment-grade, U.S. dollar-denominated, fixed-rate taxable bonds. These underlying bonds are characterized by a dollar-weighted average maturity not exceeding three years and a maximum maturity of five years. Additionally, the fund aims to augment its income through the strategic sale and purchase of listed short-term put options. This sophisticated strategy seeks to generate steady income streams for the fund while adhering to a conservative bond investment parameter, emphasizing both security and short-term maturity.

Products and Services

• Investment in ETFs and Direct Securities

  The fund's primary investment strategy involves allocating capital to other ETFs that are designed to mirror the performance of short-term, investment-grade, U.S. dollar-denominated, fixed-rate taxable bonds, or directly investing in the securities that these ETFs hold. This method facilitates exposure to a diversified portfolio of short-term bonds that meet stringent credit quality and maturity criteria, aligning with the fund's conservative investment philosophy.

• Income Generation through Option Strategies

  As part of its secondary strategy, the fund engages in the sale and purchase of listed short-term put options. This sophisticated approach is intended to generate additional income for the fund, offsetting the typically lower yield associated with high-quality, short-term fixed income securities. Through the careful selection of put options, the fund seeks to enhance its overall return while maintaining a cautious stance towards risk.