Kingsbarn Tactical Bond ETF (KDRN)

The Kingsbarn Tactical Bond ETF (KDRN) seeks to maximize total return by solving for the idiosyncratic and systematic risks associated with fixed income investing. Idiosyncratic (credit) risk strives to be managed by a diversified core of fixed income investments. Systematic (interest rate) risk is solved through actively managing the portfolio’s effective duration exposure. We believe the combination of a well-diversified core of bonds with actively managed duration can provide KDRN the unique ability to drive alpha in both inflationary and deflationary interest rate environments.

Actively Managed Solution

The Kingsbarn Active Duration Fixed Income ETF is uniquely positioned to help solve for both credit and duration risk, giving the flexibility to navigate challenging markets to find opportunities.

Core Diversified Credit Portfolio

  • Diversified portfolio to minimize idiosyncratic risk and to navigate a variety of market conditions
  • Large allocation to high-grade credit to maintain portfolio diversification attribute
  • Core of large, liquid, and cost-effective fixed income ETFs
  • Potential to provide excess returns during periods of increased credit market volatility

Active Duration Positioning

  • Interest Rate agnostic, seeking to protect in both a rising or declining interest rate environment.
  • Active duration risk pre-determined and bound at ±10 years
  • Duration adjustment efficiently executed through the use of Treasury Futures
  • Potential for tax-efficient distributed income

Diversified High Grade Credit Core

The portfolio’s core credit exposure is broadly diversified across what we believe are the largest and most cost-effective fixed income market sectors. Exposure includes large allocations to high-grade corporate and sovereign bond markets to enhance the beneficial attribute of low correlation to risk assets. This we believe will enable the strategy to navigate a variety of market conditions.

1

LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF
2

IEF

iShares 7-10 Year Treasury Bond ETF
3

AAG

iShares Core U.S. Aggregate Bond ETF
4

HYG

iBoxx High Yield Bond ETF
5

ANGL

VanEck Vectors Fallen Angel High Yield Bond ETF
6

MBB

iShares MBS ETF
7

MUB

iShares National Muni Bond ETF
8

BNDX

Vanguard Total International Bond ETF
9

EMB

iShares J.P. Morgan USD Emerging Markets Bond ETF
10

CASH/TREASURY FUTURES

10-Year Treasury Future

*Holdings subject to change without notice.

Active Duration Management

Active Duration Management

KDRN generates active duration determinations through predicting changes in long term interest rates. Through a diversified, multi-dimensional set of predictors KDRN’s duration exposure is directionally positioned on the first Friday of every month. This is based on a proprietary investment thesis that continually monitors the primary drivers of interest rates through economic views on macro, valuation, and technical factors.

KDRN Active Duration Framework: Increase duration exposure during periods of low and deteriorating rates of economic growth / inflation, and/or undervalued bond prices

 

KDRN Active Duration Framework: Decrease duration exposure during periods of high and strengthening rates of economic growth / inflation, and/or overvalued bond prices

 

PERFORMANCE DATA

The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call 800-242-1000.

Shares are bought and sold at market price, not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.

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 (800) 242-1000 or visit our website at www.KingsbarnCapital.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may be only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.

Fund risks: When the Fund invests in Underlying Bond Funds, it is subject to the risks associated with those investment companies, (such as the risk that the fund will be concentrated in a particular issuer, market, industry or sector, and therefore will be especially susceptible to loss due to adverse occurrences affecting that issuer, market, industry or sector). Underlying Bond Funds incur operating expenses that are separate from those of the Fund. As a result, the Fund’s shareholders will indirectly bear a proportionate share of the operating expenses of the Underlying Bond Funds, in addition to Fund expenses. While fixed-income securities normally fluctuate less in price than stocks, there have been extended periods of increases in interest rates that have caused significant declines in fixed income securities prices. Junk bonds are speculative, involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities. The Fund will use derivative instruments such as futures contracts and the Underlying Bond Funds may use derivative instruments such as swaps, foreign currency exchange forward contracts, futures contracts and options on futures contracts. The value of derivatives may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose more than the amount invested in the derivative. To the extent the Fund invests in in Underlying Bond Funds that invest in foreign securities, it may be subject to additional risks not typically associated with investments in domestic securities.

Foreside Fund Services, LLC. Distributor.