Donoghue Forlines Innovation ETF
Ticker: DFNV
Fund Info
| EXCHANGE: | Cboe BZX Exchange, Inc. |
| TICKER: | DFNV |
| CUSIP: | 89628W500 |
| INCEPTION DATE: | December 7, 2020 |
| NAV SYMBOL: | DFNV.NV |
| NET ASSETS AS OF #date | |
| SHARES OUTSTANDING | |
| CLOSING | |
| NAV | |
| PREMIUM/DISCOUNT | |
| Gross/Net Expense Ratio | 0.69% |
| 30-DAY SEC YIELD AS OF 9/30/2023 | 0.34% |
| Median 30 Day Bid/Ask Spread |
Investor Materials
Fund Investment Objective
The Donoghue Forlines Innovation ETF seeks to track investment results of FCF US Quality Innovation Index that provides exposure to U.S. publicly traded companies with strong free cash flow and strong research and development (“R&D”) investment.
Where does DFNV fit into a portfolio?
The Donoghue Forlines Innovation ETF is a strategic allocation to investor portfolios that fits outside of traditional “style box” portfolio construction. Because technology is embedded in every sector of the new economy, innovation cannot be boxed into sectors or styles. This ETF is a core position as part of an overall asset allocation to equities.
Why invest in DFNV?
DFNV provides exposure to publicly traded companies with strong free cash flow and strong research and development (R&D) investment
Advances in technology and healthcare are now embedded in every sector of the global economy (financial services, manufacturing, consumer discretionary first among them), which potentially changes how returns in the equity markets, public and private, may be produced in the future; DFNV is constructed to identify and adapt to those trends.
R&D spending combined with strong free cash flow generation have been responsible for a subset of corporations’ emergence as new leaders in global markets; DFNV includes companies across all sectors that maintain high R&D intensity and strong free cash flow generation
Performance
Quarter End Performance (as of 9/30/2023)
| Quarter | YTD | 1 Yr | 2 Yr | 3 Yr | Annualized Since Inception (12/07/2020 – 9/30/2023) | |
|---|---|---|---|---|---|---|
| Market Price | 8.22% | 17.68% | 14.04% | -5.22% | N/A | 3.60% |
| NAV | 8.21% | 17.61% | 14.17% | -5.28% | N/A | 3.57% |
| Russell 1000 Total Return Index | 8.49% | 18.58% | 15.40% | 0.22% | N/A | 8.11% |
| Russell 1000 Growth Index | 9.45% | 32.17% | 21.94% | -0.65% | N/A | 7.79% |
Top 10 Holdings
Top 10 Holdings (As of )
Premium Discount
Donoghue Forlines Innovation ETF
January 3, 2022 to September 29, 2023
| Days Traded | Calendar Year 2022* | Calendar Year 2023 through 9/29 |
|---|---|---|
| at premium | 99 | 62 |
| at net asset value | 1 | 0 |
| at discount | 151 | 125 |
The following table and line graph are provided to show the frequency at which the closing price of the Fund was at a premium (above) or discount (below) to the Fund’s daily net asset value (“NAV”). The table and line graph represent past performance and cannot be used to predict future results. Shareholders may pay more than NAV when buying Fund shares and receive less than NAV when those shares are sold because shares are bought and sold at current market prices
Distribution
Distribution Detail
| Ex-Date | Record Date | Payable Date | Amount |
|---|---|---|---|
| 12/30/2020 | 12/31/2020 | 01/04/2021 | $0.00525928 |
| 12/30/2021 | 12/31/2021 | 1/03/2022 | $1.40173001 |
| 12/28/2022 | 12/29/2022 | 12/30/2022 | $0.26517592 |
Investment Committee
Jeffrey R. Thompson • John A. Forlines, III • Richard E. Molari • Nick Lobley
Investment Advisor to the Fund
Donoghue Forlines LLC is a tactical investment firm that has specialized in risk-managed portfolios since 1986. Our tactical strategies are based upon rigorous analysis of decades of historical data. The Donoghue Forlines Funds utilize technical indicators to recognize shifts in market momentum and uses proprietary tactical signals to help mitigate losses in down trending markets and potentially offer strong client-centric riskadjusted returns over a full market cycle.
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Donoghue Forlines LLC | One International Place, Suite 310 | Boston, MA 02110 | 1.800.642.4276
Investing involves risk. Principal loss is possible.
Holdings are subject to change and should not be considered a recommendation to buy or sell any security.
**The 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the statutory and summary prospectuses, a copy of which may be obtained by visiting the Fund’s website at www.donoghueforlinesetfs.com/etfs/dfnv/ and www.donoghueforlinesetfs.com/etfs/dfhy/. Please read the prospectus carefully before you invest.
Quasar Distributors, LLC
There is no guarantee that DFNV will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small-and mid-cap securities, which involve limited liquidity and greater volatility than large-cap securities. Because the Fund invests in ETFs, an investor will indirectly bear the principal risks of the underlying funds, including illiquidity, and an investment in the Fund will entail more costs and expenses than a direct investment in the Underlying ETFs. Passive funds that seek to track an index may hold the component securities of the underlying index regardless of the current or projected performance of a specific security or relevant market as a whole, which could cause the Fund returns to be lower than if the Fund employed an active strategy. The performance of the Fund may diverge from that of its Index. The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in the underlying assets, including counterparty, leverage and liquidity risks. The Fund may participate in futures markets, which are highly volatile. The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in the underlying assets, including counterparty, leverage and liquidity risks. Active and frequent trading of portfolio securities may result in increased transaction costs to the Fund and may also result in higher taxes if Shares are held in a taxable account.
The FCF US Quality Innovation Index (the “Index”) tracks the performance of a rules-based strategy that seeks to provide exposure to U.S. equities with strong Free Cash Flow and R&D Investment, selected by a proprietary Free Cash Flow Innovation factor model. It is not possible to invest directly in an index.
Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.
Alpha is a measure of performance on a risk-adjusted basis.
Regarding the Donoghue Forlines Tactical High Yield ETF and Donoghue Forlines Innovation ETF: the information in this communication is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This communication is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Opinions expressed are subject to change, are not guaranteed, and should not be considered investment advice.
Market Price: The current price at which shares are bought and sold. Market returns are based upon last trade price. NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.
The Russell 1000 Index is a stock market index that tracks the highest-ranking 1,000 stocks in the Russell 3000 Index, which represent about 90% of the total market capitalization of that index.