REX Autocallable Income ETF (ATCL)

Overview

TLDR adopts a sophisticated laddered maturity strategy for a portfolio focused on US Treasury Bills (T-Bills), aiming for a dollar-weighted average maturity of approximately 60 days. The investment strategy predominantly includes T-Bills with remaining maturities of six months or less. Additionally, the portfolio may contain cash, cash equivalents, or treasury-backed money market instruments. To enhance yield potential along the front end of the US Treasury yield curve, the sub-adviser plays a crucial role in managing the ladder and the timing of reinvestments. This enables the portfolio to be tactically adjusted in response to changing market conditions, either by extending to slightly longer-dated bills when favorable conditions arise or by reducing maturity to 30 days or less to maintain liquidity and mitigate interest-rate risk. The unique strategy includes spreading investments across multiple near-term maturities, which is designed to effectively manage interest-rate exposure while generating consistent cash flows. As each position matures, TLDR continuously reinvests in newly issued T-Bills at prevailing market rates, which may lead to a higher turnover rate within the portfolio.

Products and Services

• US Treasury Bills (T-Bills)

  TLDR's primary investment vehicle is US Treasury Bills, short-term securities issued by the government. These T-Bills usually have maturities ranging from a few days up to one year, offering a secure investment option with the backing of the US government, making them a popular choice for conservative investors.

• Laddered Maturity Approach

  This approach involves structuring the portfolio in a way that diversifies investment across various maturities. By staggering the maturity dates, TLDR is better positioned to manage interest-rate exposure effectively while ensuring regular cash flows as some securities mature frequently.

• Cash and Cash Equivalents

  In addition to T-Bills, the portfolio may include a portion allocated to cash and cash equivalents. This can provide necessary liquidity and flexibility, allowing the fund to swiftly respond to market conditions or unexpected investment opportunities.

• Treasury-Backed Money Market Instruments

  These financial products are designed to provide additional liquidity and return potential, leveraging the safety of Treasury securities. They typically yield competitive rates while maintaining a focus on principal protection.

• Dynamic Portfolio Management

  The sub-adviser implements a dynamic management strategy that optimizes yield by adjusting the average maturity of the portfolio in response to market environments. This could involve extending maturities when market conditions favor longer-dated bills or shortening them to preserve liquidity and lower interest-rate risk.

• High Portfolio Turnover

  Due to the strategy of continuously rolling over positions into newly issued T-Bills, TLDR experiences high portfolio turnover. This active management approach allows the fund to capture current market yields and adapt to changing interest rates swiftly, thus maximizing potential returns.