Return Stacked Bonds & Merger Arbitrage ETF
Key Statistics
Historical Performance
Total return including reinvested distributions, from adjusted closing prices.
Price History
Price history is being compiled for this fund.
Top Holdings
Top 17 holdings as of Jan 31, 2026 · source: SEC N-PORT. Full holdings & prospectus →
About RSBA
The Fund is an exchange-traded fund (“ETF”)that employs a hybrid management approach to achieve its investment objective by investing in two complementary strategies: anactively managed Bond strategy and a passively managed Merger Arbitrage strategy. The Fund uses leverage to “stack”the total return of holdings in the Fund’s Bond strategy together with the potential returns of the Fund’s Merger Arbitragestrategy. Essentially, one dollar invested in the Fund provides approximately one dollar of exposure to the Fund’s Bond strategyand approximately one dollar of exposure to the Fund’s Merger Arbitrage strategy. So, the return of the Merger Arbitragestrategy (minus the cost of financing) is essentially stacked on top of the returns of the Bond strategy. Under normal circumstances, the Fund willinvest at least 80% of its net assets, plus borrowings for investment purposes, in (a) the Bond strategy (as described below) and(b) the Merger Arbitrage strategy (as described below). ● Bond strategy: The Fund will invest in U.S. Treasury securities, U.S. Treasury ETFs, and/or futures contracts on U.S. Treasury securities, as well as swaps on any of the foregoing and/or swaps on U.S. Treasury indices. ● Merger Arbitrage strategy: The Fund will invest in U.S. equity securities with both long and short exposures. The Fund may either invest directly in U.S. equity securities or access them via derivative contracts (i.e., via options and swaps). The Fund may invest in or have exposure to securities issued by small-, mid-, and large-capitalization issuers. The Fund may also invest in cash or cash equivalents, such as money market funds, similar cash management vehicles, and ultra short-term bond ETFs. The Fund will target a 100% exposure toeach of its Bond strategy and its Merger Arbitrage strategy. For more information, see the section in the Fund’s Prospectustitled “Additional Information About the Fund’s Principal Investment Strategies.” Bond Strategy: Through its actively managedBond strategy, the Fund seeks to capture the total return of the broad U.S. Treasury market with the objective of long-term capitalappreciation. To do so, the Fund will invest in futures contracts and swaps that provide exposure to the U.S. Treasury market,including U.S. Treasury futures, swaps on U.S. Treasury futures, swaps on U.S. Treasury indices, and/or swaps on U.S. TreasuryETFs. U.S. Treasury futures are contracts for the purchase and sale of U.S. government notes or bonds for future delivery. TheFund will invest in or have exposure to futures contracts on U.S. Treasuries with maturities ranging from 2 to 30 years, with atarget duration of 2 to 8 years. The Fund may also investdirectly in U.S. Treasury securities, including Treasury bills, notes, and bonds across the yield curve with a target durationof 2 to 8 years, as well as broad-based U.S. Treasury ETFs, which are ETFs that are designed to provide broad exposure to U.S.Treasuries. The Fund’s sub-adviser, Newfound Research LLC (“Newfound”), will favor low-cost bond ETFs that provideexposure to the overall U.S. Treasury market, and which are highly liquid. Under normal circumstances,the Fund’s notional exposure to the Bond strategy will represent approximately 100% of the Fund’s net assets. Note: Notional value is the totalunderlying amount of a derivatives trade. Leverage allows an investor (like the Fund) to use a small amount of money to gain exposureto a larger (and potentially, a much larger) amount. So, notional value reflects the total value of a trade, not the cost (or marketvalue) of taking the trade. In addition, duration refers to the average life of a debt instrument and serves as a measure of thatinstrument’s interest rate risk. In general, when interest rates increase, the prices of fixed income securities decrease.Generally speaking, the longer an asset’s duration, the more sensitive the asset will be to changes in interest rates. Forexample, if interest rates increase by 1%, the market value of a bond portfolio with a duration of three years would decline byapproximately 3%. ReSolve Asset ManagementInc. (“RAM”) serves as a non-discretionary investment sub-adviser to the Fund and is responsible for trade execution of financial instrumentsspecifically related to the Bond Strategy, including selecting broker-dealers to execute purchase and sale transactions. Merger Arbitrage Strategy – Overview: Through its passively managedMerger Arbitrage strategy, the Fund’s portfolio allocated to this strategy will seek to generally track the performance ofthe AlphaBeta Merger Arbitrage Index (“Underlying Index”). In seeking to generally track the Underlying Index, theFund’s Merger Arbitrage strategy portfolio will invest in U.S. equities (including large-, medium-, and small-capitalizationcompanies) with both long and short exposures. The Fund may either invest directly in U.S. equity securities or access them viaderivative contracts (i.e. via options and swaps). The Fund may also gain access to the Underlying Index via a total return swap.The Underlying Index is owned, calculated, administered, and disseminated by AlphaBeta Investment Indices Ltd. (“Index Provider”). Merger ArbitrageStrategy – Underlying Index: The Underlying Index employsa merger arbitrage strategy designed to capture the difference (the “spread”) between the trading price of a targetcompany’s stock (the “Target”) after the public announcement of a merger, takeover, tender offer, leveraged buyout,or other reorganization, and the price that the acquiring company (the “Acquirer”) has agreed to pay for that stock.Only companies involved in publicly announced transactions are eligible for inclusion in the Underlying Index. To select its constituents,the Underlying Index assesses several factors, including the probability of the merger’s completion based on a pricing modelthat incorporates statistically significant factors that are relevant to deal completion, such as the market capitalization ofthe acquirer, the payment method, estimated quality of the acquirer, whether both parties have mutually agreed to the terms ofthe deal, and measures of market concentration. The estimated probability of a deal’s completion is used to calculate itsestimated expected return of the deal, which is used to compare the relative attractiveness of the transaction compared to othersin the arbitrage universe. The Underlying Index may alsohold significant cash or cash equivalents, such as money market funds, similar cash management vehicles, and ultra short-term bondETFs. Cash allocations typically occur when there are insufficient eligible Targets for inclusion or when a transaction representedby a Target has been consummated or abandoned. During periods of market stress or low merger and acquisition activity, the availabilityof suitable transactions may be significantly limited, potentially impacting the Fund’s ability to achieve its investmentobjective. To be considered for the UnderlyingIndex, a merger or acquisition deal must involve a Target company traded on major U.S. stock exchanges, with a deal value over$50 million and a deal premium below 50%. The Target must have an average daily turnover exceeding $1 million, and neither theTarget nor the Acquirer (nor their ultimate parent companies) can be based in Russia or China. For cash-and-stock deals, the Acquirermust also be U.S.-traded and the deal must not require a shareholder vote by the Acquirer. Deals are included if they have at leastan 85% estimated probability of completion and an estimated expected return above the risk-free rate plus 4%. The Underlying Index can holdup to 20 deals, with a maximum leverage of 200% long and 200% short. Each deal starts with a 12.5% allocation, adjustable uponinclusion, and cannot exceed 12.5% of the Underlying Index on reconstitution. New deals are added as they are announced, with weightingsbased on the type of deal (cash-only or cash-and-stock). Weights can be adjusted to reduce estimated downside risk. The Fund’sMerger Arbitrage strategy may, at times, not be able to track the Underlying Index due to regulatory constraints that apply tothe Fund but not the Underlying Index. For example, if, over certain periods, the Underlying Index reaches leverage levels thatare incompatible with Rule 18f-4 under the 1940 Act, a rule which limits the amount of exposure funds can achieve through derivatives,the Fund will be unable to track the Underlying Index during those periods, which may limit the Fund’s ability to achieveits investment objective. The Underlying Index assumesthat a completed deal is removed from the Underlying Index the day after its completion, which may not always align with the Fund’sMerger Arbitrage strategy. The Underlying Index reconstitutesbased on events such as the addition or removal of deals, deal cancellation, or completion. Deals may be removed to make room formore attractive deals or if pending for over 300 days. Other factors like market conditions or corporate events can also triggerdeal removal at the discretion of the Underlying Index’s Index Committee. For more information about theUnderlying Index, see “Additional Information About the Funds” below. Merger ArbitrageStrategy – Fund Implementation: To gain exposure to the UnderlyingIndex, the Fund will establish long positions in shares of Targets either directly or indirectly through the use of derivativecontracts (i.e., via options and swaps). When a transaction involves the exchange of an Acquirer’s common stock, the Fundwill, in accordance with the Underlying Index, include short exposure in the Acquirer’s stock at the deal’s exchangeratio (the rate at which the Target’s shares are exchanged for the Acquirer’s shares). This short exposure (sellingborrowed stock with the expectation of buying it back at a lower price) is designed to lock in the current deal spread and hedgeagainst the risk of a decline in the deal value due to a decline Acquirer’s stock price. The Fund enters into a short saleby selling a security it has borrowed (typically from a broker or other institution) or by using derivatives, such as swaps, togain short exposure. Additionally, the Fund may access the Underlying Index through a total return swap (a derivative contractthat exchanges the total return of an asset) rather than investing directly in the individual constituents of the Underlying Index. Although the Fund generallyexpects to replicate (or hold all components of) the Underlying Index, the Fund reserves the right to use representative samplingto track the Underlying Index. Under normal circumstances,the Fund’s exposure to the Merger Arbitrage strategy will represent approximately 100% of the Fund’s net assets. TheFund’s Merger Arbitrage strategy may involve levered exposure to U.S. equities. The Adviser is responsiblefor trade execution of securities and financial instruments specifically related to the Merger Arbitrage Strategy, including selectingbroker-dealers to execute purchase and sale transactions. Collateral The Fund will invest in collateral, includingU.S. Government securities (such as bills, notes and bonds issued by the U.S. Treasury) and money market funds. The collateralinvestments are designed to provide liquidity, serve as margin, or otherwise collateralize the Fund’s investments in derivativeinstruments (i.e., futures and swaps). The Fund’s allocation to collateral will generally range between 5% and 25% undernormal circumstances. The Fund’s investment strategiesmay include active and frequent trading, and as a result, the Fund’s portfolio will be subject to a high portfolio turnoverrate. The Fund is classified as a “non-diversified” investment company under the 1940 Act and, therefore, may investa greater percentage of its assets in a particular issuer than a diversified fund.
RSBA News
Data for RSBA is aggregated from third-party providers (Tiingo, Nasdaq, Finnhub) and SEC filings, may be delayed at least 20 minutes, and may be incomplete or contain errors. Nothing here is investment advice. Verify with the official prospectus before investing.