LeaderShares Dynamic Yield ETF (DYLD)

Overview

The fund operates as an actively managed Exchange-Traded Fund (ETF) focusing primarily on investing in a diverse portfolio of fixed income instruments. It aims to allocate at least 80% of its net assets, which includes borrowings for investment purposes, towards a broad range of fixed income securities. The fund's strategy includes direct and indirect investments across various sectors and geographies, accommodating different interest rate environments through both fixed and adjustable rate instruments.

Products and Services

The fund offers investment opportunities in several types of fixed income instruments, each serving as a component of its diversified portfolio. Below is a list of the principal investments along with their explanations:

• Corporate Bonds: Debt securities issued by corporations to fund capital improvements, expansions, debt refinancing, or acquisitions. Corporate bonds typically offer higher yields than government securities due to higher risk.
• U.S. Government and Agency Securities: Bonds issued or guaranteed by the U.S. government or its agencies. These securities are known for their safety and are considered low-risk investments.
• Private Debt: Loans and debt securities issued by private companies. This type of investment can offer higher yields compared to public debt, compensating for the higher risk associated with less transparency and liquidity.
• Foreign Sovereign Bonds: Debt securities issued by foreign governments. Investing in these bonds allows for geographic diversification as well as exposure to different economic and interest rate environments.
• Convertible Securities: Bonds or preferred stocks that can be converted into a predetermined amount of the issuer's equity, typically at the option of the holder. These securities blend fixed-income and equity features, offering potential for income and capital appreciation.
• Bank Loans: Loans made by banks to companies, often syndicated and sold to investors. These loans are generally secured by assets and may offer higher yields than more traditional fixed income securities.
• Asset-Backed Securities (ABS): Bonds or notes backed by financial assets, typically loans or receivables. ABS can diversify a portfolio due to their varying underlying assets, such as auto loans or credit card debts.
• Mortgage-Backed Securities (MBS): Securities secured by mortgage loans. MBSs allow investors to earn interest from the mortgage payments of homeowners.
• Cash Equivalent Instruments: Highly liquid investments with maturities of three months or less. These are considered very low-risk and are used to manage the fund's cash flow needs and liquidity.