Stance Sustainable Beta ETF (STSB)

Overview

The investment strategy focuses on mirroring the performance of the Russell US Small Cap Factors Blend Style Index. This mechanism primarily involves dedicating at least 80% of its assets to the securities that form part of the index or those with economic characteristics closely akin to it. The fundamental aim is to provide investors with exposure to a diversified portfolio of small-cap US equities that embody certain style factors. The index targets equities within the Russell 2000® Index, meticulously selecting based on exposure to five distinct equity style factors, ensuring the risk level parallels that of the broader index it stems from. Despite its concentrated investment approach, the fund maintains flexibility by allocating up to 20% of its assets towards futures, options, and swap contracts, in addition to cash and cash equivalents, hence allowing a degree of liquidity and risk management. This fund is identified as non-diversified, adhering to a concentrated investment strategy in the pursuit of its objectives.

Products and Services

• Equity Securities Investment

The primary service offered involves investing in equity securities that are part of the Russell US Small Cap Factors Blend Style Index or possess substantially identical economic characteristics. This aims at capturing the market dynamics and growth potential within the small-cap segment of the US equity market, focusing on firms that align with specific style factors.

• Derivative and Secondary Investment Instruments

To enhance liquidity, manage risks, and potentially leverage market opportunities, the fund invests up to 20% of its assets in derivatives such as futures, options, and swap contracts. These financial instruments may serve as tools for hedging against market volatility or for speculative purposes, offering a mechanism to gain exposure to various market segments without directly investing in the underlying assets.

• Cash and Cash Equivalents Investment

As a part of its strategy to ensure fund liquidity and manage risk exposure, investments in cash and cash equivalents are considered. This not only provides a buffer during volatile market conditions but also supports operational needs and facilitates smoother transactional capabilities for the fund. Investing in these low-risk assets can safeguard the fund's value and offer a steady return, albeit lower compared to equities or derivatives.