MOOD

The strategy underlying the Relative Sentiment Tactical Allocation ETF comprises four steps:

1. Determine the “risk-on” (i.e., equity) allocation using an ensemble of longitudinal relative sentiment indicators
2. Partition that “risk-on” allocation between U.S. and developed market equities using cross-sectional relative sentiment indicators
3. Identify whether macro conditions are ripe for gold using dollar relative sentiment and the trajectory of real interest rates
4. Allocate the remainder of the portfolio to TIPS and/or nominal bonds based on retail macro sentiment related to inflation expectations

• The fund takes a long-only approach and uses no leverage or derivatives
• It recomputes its allocations weekly and rebalances when the allocations have drifted beyond a threshold
• It expresses its allocations using liquid, low-cost, broad-market ETFs.

Raymond Micaletti is the co-founder and CIO of Relative Sentiment Technologies, LLC. He has over 20 years’ experience at major investment banks (JPMorgan, Barclays), hedge funds (Fortress Investment Group), and asset management firms where his primary focus has been on the research, development, and management of systematic investment strategies. In 2018, he laid the groundwork for RST by publishing a paper on a new method for tactical asset allocation using relative sentiment–an active topic on which he continues to research and publish. A native of western Pennsylvania, Ray holds a B.S. in civil engineering from the University of Notre Dame and a Ph.D. in engineering mechanics from Princeton University.

IOPV, or Indicative Optimized Portfolio Value, is a calculation disseminated by the stock exchange that approximates the Fund’s NAV every fifteen seconds throughout the trading day.

Median 30 Day Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.