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Donoghue Forlines Yield Enhanced Real Asset ETF

Fund Info

EXCHANGE: Cboe BZX Exchange, Inc.
TICKER: DFRA
CUSIP: 89628W708
INCEPTION DATE: December 14, 2021
NAV SYMBOL: DFRA.NV
NET ASSETS AS OF 12/14/2021
SHARES OUTSTANDING
CLOSING
NAV
PREMIUM/DISCOUNT
Gross/Net Expense Ratio 0.69%
30-DAY SEC YIELD AS OF 10/31/2022 5.76%
Median 30 Day Bid/Ask Spread NA

FUND Data & Pricing

Investor Materials

SAI

Fund Investment Objective

The Donoghue Forlines Yield Enhanced Real Asset ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FCF Yield Enhanced Real Asset Index (the “Underlying Index”).

Where does DFRA fit into a portfolio?

The Donoghue Forlines Yield Enhanced Real Assets ETF is a strategic allocation to investor portfolios that fits outside of traditional investments in portfolio construction. This ETF can be alternative position to traditional investments of stocks and bonds as part of an overall asset allocation.

Why invest in DFRA?

Investors are currently challenged with the threat of persistent inflationary pressure. Additionally, traditional asset classes are not cheap. Large Cap stocks valuations are elevated, credit spreads are tight, and interest rates are historically low. Given this environment, we believe real assets have become a core allocation to complement traditional investments:

  • Real assets provide diversification, a hedge to inflation, and quality income.
  • DFRA provides exposure to “real assets” (REITS, Infrastructure, Oil & Gas MLP’s, Commodities, Natural Resources) we believe have better quality characteristics, an alternative to traditional equities and fixed income.
  • Inflation Hedge: Seeks to provides better risk-adjusted return than broad market equities in periods of positive inflation surprises
  • Enhanced Quality Income: Seeks to generates a higher dividend yield than broad market equities and the market-cap weighted real asset equities universe, with the potential of continuous dividend payments over the long term.
  • Alpha Generation: Applies Proprietary Free Cash Flow Quality Factor Model to seek alpha generation over a market-cap-weighted real asset equity universe

Performance

Quarter End Performance (as of 9/30/2022)

Quarter YTD 1 Yr 2 Yr 3 Yr Annualized
Since Inception
(12/14/2021 – 9/30/2022)
Market Price -1.32% -6.32% N/A N/A N/A -3.35%
NAV -1.54% -6.26% N/A N/A N/A -3.34%
S&P Real Assets Equity Index (Net TR)

-9.43%

-18.87%

N/A

N/A N/A -15.78%
Expense Ratio: 0.69%. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will uctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (toll free 800-617-0004). Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns.

Top 10 Holdings

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Top 10 Holdings (As of )

Premium Discount

Donoghue Forlines Yield Enhanced Real Asset ETF

December 13, 2021 to September 30, 2022

DFRA Premium Discount September 2022
Days Traded Calendar Year 2021* Calendar Year 2022 through 9/30
at premium 11 60
at net asset value 1 1
at discount 2 127

*Since Inception 12/14/2021

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
12/30/2021 12/31/2021 01/03/2022 $0.02080889
3/3/2022 3/4/2022 3/7/2022 $0.11802099
6/3/2022 6/6/2022 6/7/2022 $0.29258053
9/6/2022 9/7/2022 9/8/2022 $0.63033434

Investment Committee

Jeffrey R. Thompson •  John A. Forlines, IIIRichard E. MolariNick 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.

Prospectus & Account Questions

Marketing & Sales Questions

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Investing involves risk. Principal loss is possible.

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 Forms Page. Please read the prospectus carefully before you invest.

Quasar Distributors, LLC

Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Please click here for top holdings. www.donoghueforlinesetfs.com/dfnv/, www.donoghueforlinesetfs.com/dfhy/, www.donoghueforlinesetfs.com/dfra/.

There is no guarantee that DFRA 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. Downside Protection Model Risk. Neither the Adviser nor the Sub Adviser can offer assurances that the downside protection model employed by the Underlying Index methodology will achieve its intended results, or that downside protection will be provided during periods of time when the Equity Portfolio is declining or during any period of time deemed to be a bear market. Investment in a fund that utilizes a downside protection model that seeks to minimize risk only during certain prolonged bear market environments may not be appropriate for every investor seeking a particular risk profile. 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. REITs Risk. A REIT is a company that pools investor funds to invest primarily in income producing real estate or real estate related loans or interests. The Fund may be subject to certain risks associated with direct investments in REITs. MLP Risk. An MLP is a publicly traded partnerships primarily engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLP common units, like other equity securities, can be affected by macroeconomic and other factors affecting the stock market in general.

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.

Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Current and future portfolio holdings are subject to risk.

Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for capital expenditures.

The FCF Free Cash Flow Yield Enhanced Real Asset Index is designed to track the investment result of a rules-based strategy that aims to provide exposure to global “real assets” equities. The Index intends to provide high quality alternative exposure, inflation hedge enhanced quality income and alpha generation.

Alpha refers to excess returns earned on an investment above the benchmark return.