ETF's

 

Recon Capital USA Managed Risk ETF

Why USMR ?

Seeks a Measure of Portfolio Protection: USMR is based on an index that provides exposure to the broad U.S. market while seeking to reduce downside risk and capture meaningful gains in rising markets.
 
Unconstrained to Benchmark: The ETF is not restricted to the holdings, sectors, or factor constraints of the S&P 500 and focuses on managing systematic risk exposures such as value, growth, momentum, exchange-rate sensitivity, leverage and liquidity. Furthermore, the ETF rebalances monthly adapting to the dynamic and ever-changing markets in order to provide the most optimal portfolio for risk-adjusted returns..
 
Core Holding Alternative: ETF is designed to replace or compliment core U.S. equity holdings in a portfolio.
 
Access to Axioma's Factor Risk Model: USMR is the only US ETF that provides a retail investor access to Axioma's factor risk model. The model uses a portfolio optimazation algorithm that is normally only used by large institutions and money managers.
 

Investment Objective

The Recon Capital United States Managed Risk ETF seeks to provide investment results that will closely correspond, (before fees and expenses) generally to the performance of the STOXX® USA 900 Minimum Variance Unconstrained Index.   

Please note the fund advisor has contractually agreed to waive a portion of the Management Fee of USMR from 0.50% to 0.30% until 2/28/2018.  The Gross Expense Ratio is 0.50% and the Net Expense Ratio is 0.30%.

USMR Explained:

The USA Managed Risk ETF takes the largest 900 companies in the U.S. and uses Axioma's state-of-the-art factor risk model and optimizer that seeks to pick the best risk adjusted stocks given the current market environment. The factor risk model strives to minimize risk in an effort to reduce the volatility of the underlying index. The ETF seeks a higher risk adjusted return relative to the broader U.S. equity market.

 

Index Methodology

The STOXX USA 900 Minimum Variance Unconstrained Index uses an established covariance matrix that determines the correlation between each component of the STOXX USA 900 index and specific factors. Axioma's state-of-the-art Fundamental / technical factor model specifies systematic risk drivers in regions and single countries  with the model updated daily and runs the risk optimizer on over 150 factors including volatility, exchange-rate sensitivity, value, growth, liquidity and momentum to determine the constituents used in the index. The portfolio dynamically rotates around equities, industries, geographical and factor allocations taking into account current market information in order to produce a new risk-adjusted basis every month.

 

Index Description

The STOXX USA 900 Minimum Variance Unconstrained Index is based on the broad STOXX USA 900 Index then calculates the risk exposure (variance/co-variance) of each constituent to Axioma’s style factors.

 

Fund Information as of 02/21/2017

Inception Date 09/20/2016
Ticker Symbol USMR
CUSIP 75623U607
Listing Exchange NYSE
Gross Expense Ratio 0.5 %
IOPV Symbol USMR.IV
NAV Symbol USMR.NV
NAV $24.98
Premium Discount ($25.93)
Premium Discount Percentage 0.00%
Volume ---
Closing Price ---
Bid Ask Midpoint $ 25.93
Shares Outstanding 100,000
All Data as-of Date 02/21/2017
 

Underlying Index Information

Index STOXX USA 900 Minimum Variance Unconstrained Index
Index Symbol SA9UUNV
Index Provider STOXX
Index Inception 12/13/2012
No. of Securities 155

Top 10 Holdings as of 02/21/2017

Ticker Company % of Fund
SO SOUTHERN CO 4.55 %
WWAV WHITEWAVE FOODS CO 4.23 %
Cash Cash & Other 3.99 %
COST COSTCO WHSL CORP NEW 3.88 %
CLX CLOROX CO DEL 3.56 %
MO ALTRIA GROUP INC 3.07 %
CHRW C H ROBINSON WORLDWIDE INC 3.06 %
KMB KIMBERLY CLARK CORP 2.93 %
SYY SYSCO CORP 2.91 %
WMT WAL-MART STORES INC 2.66 %
Download Holdings

Downloadable Links

Prospectus
Annual Report
SAI
Fact Sheet ---
Monthly Performance
Holdings
XBRL
 

Performance Table

As of 01/31/2017 (Inception 09/20/2016) 1 Month 3 Month YTD 1 Year 3 Year 5 Year Since Inception
USMR (Market) -1.08% 4.15% -1.08% - - - 1.65%
USMR (NAV) 0.70% 4.94% 0.70% - - - 2.51%
Index 0.54% 4.48% 0.54% 8.04% 9.61% - 1.82%
 

Distribution Schedule

Ex-Dividend Date Record Date Payment Date Payment Amount Distribution Period
    2017
12/20/2017 12/22/2017 12/26/2017 Semi- Annual
06/21/2017 06/23/2017 06/27/2017 Semi- Annual
    2016
 

Performance data quoted represents past performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. See www.ReconFunds.com/USMR to find the most recent month-end performance numbers. The fund is newly organized and has limited history of operations. An investor cannot invest directly in an index. Index inception is 12/13/2012.

Important Disclosures: You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact Recon Capital Advisors at 1-844-RC-FUNDS/1-844-723-8637 or visit www.ReconFunds.com to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. Index returns are for illustrative purposes only. Investors cannot directly invest in an index and unmanaged index returns do not reflect any management fees, transaction costs or expenses. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with investments in the Fund. Investing in the fund involves risk, including possible loss of principal. The Fund seeks to track the Underlying Index, which  itself may have concentration in certain regions, economies, countries, markets, industries or sectors.  The Fund may be susceptible to an increased risk or loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, or asset class. Diversification may not protect against market risk or loss of principal. Brokerage commissions will reduce returns. The Fund is considered non-diversified and may be subject to greater risks than a diversified fund. Recon Capital Advisors, LLC is the Investment Adviser of the Fund. The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Recon Capital Advisors, LLC or any of its affiliates.

Passive Investment Risk. The Fund is not actively managed and the Adviser does not attempt to take defensive positions under any market conditions, including declining markets.

Volatility Risk. Although the Index was created by the Index Provider to seek lower volatility than the STOXX® USA 900 Index, there is no guarantee that these strategies will be successful. However, the Index Provider may be unsuccessful in creating an index that minimizes volatility, and there is a risk that the Fund may experience more than minimum volatility. Securities in the Fund’s portfolio may be subject to price volatility and the prices may not be any less volatile than the market as a whole, and could be more volatile.

Additional Considerations: This financial instrument is neither sponsored nor promoted, distributed or in any other manner supported by Deutsche Börse AG (the "Licensor"). The Licensor does not give any explicit or implicit warranty or representation, neither regarding the results deriving from the use of the Index and/or the Index Trademark nor regarding the Index value at a certain point in time or on a certain date nor in any other respect. The Index is calculated and published by the Licensor. Nevertheless, as far as admissible under statutory law the Licensor will not be liable vis-à-vis third parties for potential errors in the Index. Moreover, there is no obligation for the Licensor vis-à-vis third parties, including investors, to point out potential errors in the Index. Neither the publication of the Index by the Licensor nor the granting of a license regarding the Index as well as the Index Trademark for the utilization in connection with the financial instrument or other securities or financial products, which derived from the Index, represents a recommendation by the Licensor for a capital investment or contains in any manner a warranty or opinion by the Licensor with respect to the attractiveness on an investment in this product. In its capacity as sole owner of all rights to the Index and the Index Trademark the Licensor has solely licensed to the issuer of the financial instrument the utilization of the Index and the Index Trademark as well as any reference to the Index and the Index Trademark in connection with the financial instrument.

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