SGI U.S. Large Cap Core ETF (SGLC)

Overview

The fund described is an actively-managed Exchange-Traded Fund (ETF) that strategically aims to meet its investment objectives by primarily allocating at least 80% of its net assets, this includes any borrowings for investment purposes, into the securities of large-capitalization companies. These large-cap companies are identified as those listed within two major indices: the Russell 1000® Index and the S&P 500® Index. By focusing on companies within these indices, the fund targets investments in well-established companies with significant market presence and stability.

Products and Services

The fund offers a diverse range of investment products and services, focusing on maximizing returns through a carefully selected portfolio of large-cap securities. This diversified approach is designed to cater to investors seeking growth through exposure to well-established companies. Below is a detailed list of the fund's primary investment vehicles:

• Common Stocks: The majority of the fund’s investments are in common stocks of large-capitalization companies. These stocks represent ownership shares in companies and entitle the shareholder to a claim on part of the company’s assets and earnings. Investing in common stocks is a principal strategy for the fund, aiming to leverage the growth and performance of leading companies within their respective industries.
• Preferred Stocks: As part of its diversified portfolio, the fund may also invest in preferred stocks. Unlike common stocks, preferred stocks generally offer fixed dividends and have priority over common stocks in the event of a liquidation. These stocks combine features of both equity and debt securities, potentially providing a more stable income stream and adding a layer of investment security to the fund’s portfolio.
• Warrants to acquire common stock: The fund may include warrants in its investment mix. Warrants are derivatives that confer the right, but not the obligation, to buy a company’s stock at a specified price before the warrant expires. This allows the fund an opportunity to invest in the potential growth of the underlying securities at a future date, potentially enhancing the fund's returns.
• Securities Convertible into Common Stock: Lastly, the fund's portfolio may encompass securities convertible into common stock, such as convertible bonds or convertible preferred shares. These securities offer the potential for income through fixed interest or dividend payments, with the added option to convert into common shares usually at the discretion of the holder. This feature provides an avenue for the fund to participate in the equity upside of the issuing company, adding a growth component to its income-generating investments.