Applied Finance IVS US SMID ETF (IVSS)

Overview

IVSS is an actively managed investment fund that focuses its strategy on small- to mid-cap equity securities in the United States. This categorization encompasses companies with market capitalizations of up to $15 billion at the time of purchase. The fund allocates approximately 80% of its net assets to these equities, which are selected based on their potential for superior returns driven by thorough analysis.

The investment approach leverages a proprietary Intrinsic Value Stewardship (IVS) analytical model. This model evaluates a variety of factors critical to a company's performance, including profitability, competitive positioning, growth rates, cost of capital, and financing activities. The fund is designed to maintain a minimum of 150 holdings across different sectors, allowing for a balanced yet focused portfolio. It is important to note that as a non-diversified fund, IVSS invests in fewer securities compared to diversified funds, enabling concentrated positions in select opportunities.

Products and Services

• Equity Securities: The core offering of IVSS includes investments in the equity securities of US small- to mid-cap companies. These securities are intended to capitalize on their growth potential and are believed to provide superior returns over time.
• Intrinsic Value Stewardship (IVS) Analytical Model: This proprietary model is essential for the fund's investment decision-making process, examining key performance indicators such as profitability, competition, and growth rates, which guide the selection of potential investment opportunities.
• Diverse Holdings: IVSS aims to maintain a diversified portfolio by holding at least 150 different positions across various sectors, thus minimizing risk while seeking targeted capital appreciation from select investments.
• Concentrated Positions: Despite its goal for diversified holdings, the fund has the flexibility to take larger positions, exceeding 5% in certain securities or sectors when deemed appropriate based on the fund's strategic analysis.
• Convertible Securities: In addition to common equities, IVSS invests in convertible securities—debt instruments that can be converted into a specific number of shares of common stock, offering enhanced upside potential.
• Preferred Stocks: The fund also allocates investments in preferred stocks, which take precedence over common stocks in claims on assets and earnings, providing a reliable income stream.
• Rights and Warrants: IVSS invests in rights and warrants, which are financial instruments that allow the holder to purchase shares at a predetermined price, offering strategic advantages in volatile markets.
• Real Estate Investment Trusts (REITs): Investments in REITs provide exposure to the real estate sector, allowing the fund to gain income from property investments without direct ownership of real estate.
• American Depositary Receipts (ADRs): This service includes investments in ADRs, which represent shares in foreign companies and offer easier access to international assets for potential diversification and growth.