Validea Market Legends ETF (VALX)

Overview

The fund is designed to offer investors a means to track the performance of the Validea Market Legends Index, aiming to reflect the outcomes of the index before fees and expenses are applied. The methodology behind the index is proprietary and was developed by Validea Capital Management, LLC, which also serves as the fund's investment adviser. This approach involves selecting companies for inclusion in the fund based on the historical stock selection strategies of successful investors, as published and analyzed by the adviser. The fund commits to investing at least 80% of its total assets, excluding any collateral received from securities lending, in the securities that comprise the index. By doing so, the fund seeks to offer investors an accessible way to engage with the investment philosophies of some of the market’s legendary figures.

Products and Services

• Validea Market Legends Index Tracking

This service allows investors to indirectly participate in the stock selection strategies of historically successful investors by investing in the fund. The fund is managed to closely follow the performance of the Validea Market Legends Index, before fees and expenses, providing an investment product that seeks to benefit from the compiled wisdom and practices of renowned investors through a rules-based methodology.

• Proprietary Stock Selection Methodology

The fund’s investment adviser, Validea Capital Management, LLC, has developed a proprietary methodology for selecting companies for the index and, by extension, the fund. This methodology is based on the published strategies of historically successful investors, aiming to distill their investment strategies into a quantifiable and rigorous selection process. The aim is to identify stocks that these legendary investors might select, providing an investment strategy aimed at mimicking their historical success.

• Minimum Asset Investment

In line with its investment strategy, the fund makes a commitment that at least 80% of its total assets (except any collateral held from securities lending) will be invested in the components of the index. This ensures that the fund remains focused on its core investment thesis, allowing investors to have a majority of their fund investments aligned with the historical strategies of market legends. This minimum investment is a critical aspect of the fund's approach, ensuring alignment with the index's performance objectives.