Our decision to offer an ETF structure was triggered by conversations with several family offices in Mexico who expressed the need for a more efficient way to access global small- and mid-cap equity markets. Because of local regulations, they were restricted to only a few investment options in this space.
Launched in 2022, our Global Stock Selection Developed Market SMID ETF (AZTD) follows the Solactive Aztlan Global DM SMID Index which is designed as a concentrated, yet diversified stock selection methodology, similar to what we utilize for our actively managed strategies within a rules-based environment. This product (AZTD) proved to be exactly what those several family offices were looking for and served as a catalyst for the launch of the North American Nearshoring Stock Selection ETF (NRSH) in 2023. Both ETFs represent active stock selection strategies within passive frameworks.Our rules-based investment approach allows us to narrow the broad universe of small- and mid-cap companies to what we believe are the very best businesses without sacrificing diversity. This methodology is exemplified in AZTD, a strategically curated ETF that invests in 27 companies.
Important Information
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 214-2234 or visit our website at www.aztlanetfs.com. Read the prospectus or summary prospectus carefully before investing.
Solactive Aztlan Global Developed Markets SMID Cap Index: The Index is comprised of equity securities of companies from the following three developed markets (DM) regions: North America, Western Europe, Developed Asia. The Index includes securities of small-and mid-capitalization companies (“SMID-capitalization companies”), which are those with market caps between $500 million USD and $10 billion USD at the time of first purchase and as of five weekdays prior to each monthly rebalance of the Index. The Index includes securities from each of the following nine broad sectors: Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care (excluding pharmaceutical industry or sub-sector), Financials, Information Technology, Communication Services, and Utilities. The Index excludes the Energy and Real Estate sectors. The securities included in the Index will have an average daily traded value (over the most recent 30-day period) of at least $10 million USD.
Investment Risks: Diversification does not ensure a profit or protect against loss.
Concentration & Limited Holdings Risks. The Fund may concentrate its investments in one or more of the industries related to the types of companies noted below. As a result, the Fund will be subject to the company risks noted below. In addition, the Fund will hold a limited number of securities. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
Foreign Securities Risk. Investments in securities or other instruments of non-U.S. issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies. Financial markets in foreign countries often are not as developed, efficient, or liquid as financial markets in the United States, and therefore, the prices of non-U.S. securities and instruments can be more volatile. In addition, the Fund will be subject to risks associated with adverse political and economic developments in foreign countries, which may include the imposition of economic sanctions. Generally, there is less readily available and reliable information about non-U.S. issuers due to less rigorous disclosure or accounting standards and regulatory practices.
REIT Risk. A REIT is a company that owns or finances income-producing real estate. Through its investments in REITs, the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters. REITs are subject to additional risks, including those related to adverse governmental actions; declines in property value and the real estate market; the potential failure to qualify for tax-free pass through of income; and exemption from registration as an investment company. REITs are dependent upon specialized management skills and may invest in relatively few properties, a small geographic area, or a small number of property types. As a result, investments in REITs may be volatile. To the extent the Fund invests in REITs concentrated in specific geographic areas or property types, the Fund may be subject to a greater loss as a result of adverse developments affecting such area or property types. REITs are pooled investment vehicles with their own fees and expenses and the Fund will indirectly bear a proportionate share of those fees and expenses.
Models and Data Risk. The composition of the Index is heavily dependent on proprietary quantitative models as well as information and data supplied by third parties (“Models and Data”). When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon may lead to securities being included in or excluded from the Index that would have been excluded or included had the Models and Data been correct and complete. If the composition of the Index reflects such errors, the Fund’s portfolio can be expected to reflect the errors.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. There can be no assurance that the Fund will grow to or maintain an economically viable size. If the Fund fails to maintain an economically viable size, it may cease operations, and investors may be required to liquidate or transfer their investments at inopportune times.
Passive Investment Risk. The Fund invests in the securities included in, or representative of, the Index regardless of their investment merit. The Fund does not attempt to outperform the Index or take defensive positions in declining markets. As a result, the Fund’s performance may be adversely affected by a general decline in the market segments relating to the Index.
Distributed by Foreside Fund Services, LLC
Launch & Structure Partner: Tidal Financial Group