Gotham Short Strategies ETF (SHRT)

Overview

This fund operates as an actively-managed exchange-traded fund (ETF) specializing in equity and equity-related securities, primarily focusing on U.S.-traded companies. Leveraging a distinctive investment strategy, it engages in both long and short positions, aiming to achieve a balanced net equity exposure. Managed by Gotham Asset Management, LLC, this fund strives to align its holdings to ensure that its net equity exposure— the differential between its long and short positions—consistently stands at approximately 50% net short. This approach signifies an emphasis on hedging strategies and risk management, catering to investors seeking diversified exposure in the U.S. equity markets with a unique positioning towards market volatility.

Products and Services

• Actively-Managed ETF

The core offering is an exchange-traded fund that actively manages its portfolio of equity and equity-related investments. Unlike passive ETFs which track an index, this fund employs active management strategies to select investments, aiming to outperform traditional market benchmarks through strategic investment in U.S.-traded companies.

• Long and Short Equity Positions

The fund uniquely invests in both long (buying with the expectation that the stock will rise in value) and short (selling stocks short with the expectation they will decrease in value) positions in its quest for returns. This dual approach enables the fund to potentially profit from both upward and downward market movements, offering a diversified investment strategy to its patrons.

• Gotham Asset Management’s Expertise

Under the stewardship of Gotham Asset Management, LLC, the fund benefits from seasoned investment management and a methodology that emphasizes balanced net equity exposure. Gotham’s role as the Sub-Adviser is crucial in navigating market volatility and aiming for consistent investment performance, leveraging their vast experience in equity and equity-related securities.

• Approximately 50% Net Short Strategy

A distinctive characteristic of the fund is its strategic aim to maintain approximately 50% net short exposure at all times. This methodology involves adjusting the portfolio’s long and short positions to ensure that the net value derived from subtracting the short positions from the long positions aligns with this target. This strategy is indicative of a conservative risk management approach, designed to mitigate potential losses during market downturns while still participating in upside potential.