Truth Social American Energy Security ETF (TSES)

Overview

TSES is a passively managed Exchange-Traded Fund (ETF) designed to closely replicate, before fees and expenses, an index comprised of US-listed companies deemed crucial for the nation’s energy security. The index features a diverse array of industries including electric utilities, integrated oil and gas, power generation, nuclear energy technology, energy storage, and various related services. Notably, it excludes entities that focus on sectors such as electronics, electric vehicles, wind, or solar energy technology. This approach is guided by a commitment to business activity and ideological neutrality, ensuring that the fund maintains a balanced representation of the energy sector.

The fund employs a modified free-float adjusted market capitalization weighting method with issuer caps, allowing it to track the performance of its benchmark index effectively. Furthermore, it aims for full replication of the index but retains the flexibility to utilize cash equivalents and derivatives as necessary for liquidity or portfolio management purposes. The underlying index undergoes a systematic review and reconstitution process twice a year, specifically in June and December, to remain aligned with industry developments and shifts in market dynamics.

Products and Services

• Passively Managed ETF

  TSES operates as a passively managed Exchange-Traded Fund that seeks to mirror the performance of its designated index. This strategy allows investors to gain exposure to a diversified portfolio of key energy sector companies without the need for active management, thus keeping costs relatively low.

• Index Replication

  The ETF replicates an index made up of US-listed companies that are integral to the nation’s energy security. By focusing on industries critical to energy production and distribution—while excluding those focused on alternative energy technologies—the fund aligns its investment strategy with national energy priorities.

• Market Capitalization Weighting

  The index employs a modified free-float adjusted market capitalization weighting system. This methodology emphasizes larger companies to reflect their significance in the industry while also applying caps to ensure no single issuer dominates the index, contributing to a balanced investment approach.

• Liquidity Management

  TSES maintains liquidity through the potential use of cash equivalents and derivatives, allowing it to manage the portfolio effectively and meet redemption requests without significantly disrupting the fund’s performance.

• Regular Review and Reconstitution

  The underlying index is reviewed and reconstituted semi-annually, allowing TSES to adapt to changes within the energy sector. This process ensures continued alignment with industry trends and the most impactful companies within the sector, enhancing the fund’s relevance for investors.