Daily Performance
Key Facts
The Meet Kevin Pricing Power ETF (the “Fund”) seeks long-term capital appreciation.
The MeetKevin Pricing Power ETF is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies.
The MeetKevin Pricing Power ETF categorizes an “Innovative Company” as a company to be involved in the development of new products or services, technological advancements, consumer engagement, and/or disruptive approaches with respect to business growth that the Sub-Adviser expects to have a significant impact on the market or industry in which the company operates.
Further, the MeetKevin Pricing Power ETF will invest in Innovative Companies that, in Kevin’s view, also have more “pricing power” than their peers.
The MeetKevin Pricing Power ETF generally analyzes pricing power based on “price elasticity,” which is the ability to potentially increase prices for products and services without a corresponding drop in demand.
In addition, The MeetKevin Pricing Power ETF may hold the securities of other ETFs, which could be passively-managed or actively-managed (“Targeted ETFs”) to seek to hedge (provide protection for the Fund’s portfolio) against particular market risks anticipated by Kevin Paffrath.
ETF Documents
*Pricing power is defined as higher relative margins compared to market gross and net margins.
Innovative Companies with Pricing Power Selection
Kevin begins his analysis by screening an extremely large initial universe of U.S.-listed companies with a minimum market capitalization of $100 million utilizing a proprietary screening methodology. Then, Kevin analyzes the remaining initial universe of companies to identify those innovative companies that Kevin perceives as having pricing power versus their peers.
Kevin, using his own internal research and analysis, analyzes company self-reported data (e.g., press releases and regulatory filings) as well as third-party data, such as news articles and social media posts, to identify companies that are capitalizing on:
• Pricing power, as exhibited by price elasticity (as described above);
• development of new products or services;
• consumer engagement, which refers to a company’s efforts to build relationships with individuals through personalized interactions on multiple channels (for example, traditional versus social channels), with the goal of gaining and retaining loyal customers. Successful consumer engagement accomplishes that goal by distinguishing a brand from those of its competitors. Further, if the customer engagement results in with high customer retention (e.g., lower customer turnover), the company would likely have stronger and therefore, pricing power which is believed to be stronger than its competitors;
• technological advancements and innovation in the markets in which they operate; or physical or digital infrastructure designed to enable broader market use of new technologies (e.g., artificial intelligence systems) in the markets in which they operate.
In particular, Kevin considers each candidate company’s track record of disrupting mature industries (e.g., electric vehicles) or operating within disruptive industries (e.g., social media, blockchain), and/or a company’s historical patterns of launching hardware or software products that are first-to-market.
Kevin favors companies that remain founder-led, report spending more on research and development than their peers, and have a strong history of customer satisfaction. Once Kevin has identified a set of Innovative Companies with pricing power screened for the above, Kevin performs a bottoms-up analysis of each candidate.
That is, Kevin performs a company-by-company analysis of various financial factors such as price over earnings-to-growth ratio (PEG*), revenue, and margin growth. Kevin selects those Innovative Companies with, in Kevin’s view, above average growth potential across the metrics considered for inclusion in the MeetKevin Pricing Power ETF portfolio.
While the metrics considered are largely consistent, there may be industry-specific variability (e.g., margin and growth metrics typically vary by industry).
* The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period.
Performance
- Month-End
- Quarter-End
| Fund Name | Fund Ticker | 1 Month | 3 Month | 6 Month | YTD | Since Inception Cumulative | 1 Year | 3 Year | 5 Year | Since Inception Annualized | Date |
|---|---|---|---|---|---|---|---|---|---|---|---|
| The Meet Kevin Pricing Power ETF | PP NAV | -0.93 | -0.27 | 5.99 | 10.02 | 43.60 | 20.86 | - | - | 21.75 | |
| The Meet Kevin Pricing Power ETF | PP MKT | -0.74 | -0.25 | 5.92 | 9.97 | 43.66 | 21.03 | - | - | 21.78 | |
| S&P 500 TR | SPTR2 | 2.14 | 5.89 | 10.42 | 22.08 | 49.60 | 36.35 | - | - | 24.50 |
| As of: |
|---|
| 09/30/2024 |
| Fund Name | Fund Ticker | 1 Month | 3 Month | 6 Month | YTD | Since Inception Cumulative | 1 Year | 3 Year | 5 Year | Since Inception Annualized | Date |
|---|---|---|---|---|---|---|---|---|---|---|---|
| The Meet Kevin Pricing Power ETF | PP NAV | -0.93 | -0.27 | 5.99 | 10.02 | 43.6 | 20.86 | - | - | 21.75 | 09/30/2024 |
| The Meet Kevin Pricing Power ETF | PP MKT | -0.74 | -0.25 | 5.92 | 9.97 | 43.66 | 21.03 | - | - | 21.78 | 09/30/2024 |
| S&P 500 TR | SPTR2 | 2.14 | 5.89 | 10.42 | 22.08 | 49.6 | 36.35 | - | - | 24.50 | 09/30/2024 |
| As of: |
|---|
| 09/30/2024 |
The market price is the price at which shares in the ETF can be brought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share's portion of the fund's underlying assets and cash at the end of the trading day.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate 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 over 1 year is annualized.
For the most recent month-end performance, please call (805) 888-2480 or visit the Fund's website at www.mketf.com
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 Holdings
| Date | Account | StockTicker | CUSIP | SecurityName | Shares | Price | MarketValue | Weightings | NetAssets | SharesOutstanding | CreationUnits | MoneyMarketFlag |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PP | 912810UA4 | 912,810 | United States Treasury Note/Bond 4.625% 05/15/2054 | 3,847,000 | 101.72 | 3,913,120.31 | 10.54% | 37,115,100 | 1,375,000 | 55 | ||
| PP | 91282CKQ3 | 91,282 | United States Treasury Note/Bond 4.375% 05/15/2034 | 8,120,000 | 100.82 | 8,186,609.33 | 22.06% | 37,115,100 | 1,375,000 | 55 | ||
| PP | 91282CLF6 | 91,282 | United States Treasury Note/Bond 3.875% 08/15/2034 | 5,154,000 | 96.84 | 4,990,924.24 | 13.45% | 37,115,100 | 1,375,000 | 55 | ||
| PP | BITI | 74,347 | ProShares Short Bitcoin ETF | 240,871 | 6.45 | 1,553,617.95 | 4.19% | 37,115,100 | 1,375,000 | 55 | ||
| PP | COOP | 62,482 | Mr Cooper Group Inc | 9,036 | 91.16 | 823,721.76 | 2.22% | 37,115,100 | 1,375,000 | 55 | ||
| PP | FGXXX | 31,846 | First American Government Obligations Fund 12/01/2031 | 2,847,090 | 100.00 | 2,847,090.16 | 7.67% | 37,115,100 | 1,375,000 | 55 | Y | |
| PP | IAU | 464,285,204 | iShares Gold Trust | 42,528 | 52.36 | 2,226,766.08 | 6.00% | 37,115,100 | 1,375,000 | 55 | ||
| PP | MCD | 580,135,101 | McDonald's Corp | 8,077 | 295.00 | 2,382,715.00 | 6.42% | 37,115,100 | 1,375,000 | 55 | ||
| PP | PFSI | 70,932 | PennyMac Financial Services Inc | 7,934 | 102.44 | 812,758.96 | 2.19% | 37,115,100 | 1,375,000 | 55 | ||
| PP | RKT | 77,311 | Rocket Cos Inc | 292,876 | 16.31 | 4,776,807.56 | 12.87% | 37,115,100 | 1,375,000 | 55 | ||
| PP | UI | 90,353 | Ubiquiti Inc | 8,170 | 262.73 | 2,146,504.10 | 5.78% | 37,115,100 | 1,375,000 | 55 | ||
| PP | UWMC | 91,823 | UWM Holdings Corp | 441,873 | 6.54 | 2,889,849.42 | 7.79% | 37,115,100 | 1,375,000 | 55 | ||
| PP | Cash&Other | 0 | Cash & Other | -433,808 | 1.00 | -433,808.03 | -1.17% | 37,115,100 | 1,375,000 | 55 | Y |
| As of: |
|---|
| 10/30/2024 |
FAQ
What is pricing power?
We believe pricing power is defined as higher relative margins compared to market gross and net margins.
What are the tax benefits of an actively managed ETF like $PP?
One of the biggest advantages of an actively managed ETF is its tax efficiency. Because your money goes to buy what are known as creation units, instead of fund assets themselves, ETFs experience fewer taxable events than mutual funds. You only realize capital gains when you sell your ETF shares.
Can $PP have hedge positions?
During periods when the Sub-Adviser believes there is a significant risk to the market as a whole or a particular section of the market, the Fund’s portfolio may hold up to 30% of its net assets in the securities of Targeted ETFs to provide a “macro-economic” hedge against the anticipated market risk. In those cases, the Fund will hold ETFs that the Sub-Adviser believes will most likely benefit from the anticipated market risk. The following types of market risks will generally trigger macro hedging:
- Geopolitical events (e.g., wars, pandemic) that cause significant disruption to the price of oil.
- Federal Reserve monetary interest rate decisions that cause a significant price change to high-yield debt instruments.
- Extreme weather events (e.g., flooding, fires) that cause significant disruption to one or more regions.
If the Sub-Adviser determines that a macro-economic event is occurring or is likely to occur, the Fund will invest in ETFs that, in the Sub-Adviser’s view, appear poised to benefit from the event. For example, a war may trigger high oil prices and, in turn, ETFs that are focused on the oil-production industry would likely benefit.
Can $PP hold cash?
For temporary defensive purposes during the adverse market, economic, political, or other conditions, each Fund may invest in cash or cash equivalents or short-term instruments such as commercial paper, money market mutual funds, or short-term U.S. government securities. Taking a temporary defensive position may result in a Fund not achieving its investment objective.
Does the share price of $PP go up when more people buy the ticker?
No. The price of $PP (NAV) does not go up or down depending on the assets under management. The price of $PP only moves in proportion to the assets it holds.
Does $PP distribute dividends?
Each Fund intends to pay out dividends and interest income, if any, annually and distribute any net realized capital gains to its shareholders at least annually. The Funds will declare and pay income and capital gain distributions, if any, in cash. Distributions in cash may be reinvested automatically in whole additional Shares only if the broker through whom you purchased Shares makes such an option available. Your broker is responsible for distributing your income and capital gain distributions.
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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 (805) 888-2480 or visit our website at www.mketf.com. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Equity Market Risk. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests. Common stocks, such as those held by the Fund, are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations because common stockholders generally have inferior rights to receive payment from issuers.
Securities in the Fund’s portfolio may underperform in comparison to securities in the general financial markets, a particular financial market, or other asset classes, due to a number of factors. Factors that could impact the market value of equity security include a company’s business performance, investor perceptions, stock market trends, and general economic conditions.
Technology Sector Risk. The Fund will invest substantially in companies in the information technology sector, and therefore the performance of the Fund could be negatively impacted by events affecting this sector. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments.
The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Stocks of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market.
Information technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability.
Market Capitalization Risk. Large-Capitalization Investing. The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.
Mid-Capitalization Investing. The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies. The securities of mid-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large-capitalization stocks or the stock market as a whole.
Small-Capitalization Investing. The securities of small-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large- or mid-capitalization companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large- or mid-capitalization stocks or the stock market as a whole. There is typically less publicly available information concerning smaller-capitalization companies than for larger, more established companies.
Management Risk. The Fund is actively-managed and may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund.
Underlying ETFs Risks. The Fund will incur higher and duplicative expenses because it invests in Targeted ETFs. There is also the risk that the Fund may suffer losses due to the investment practices of the Targeted ETFs. The Fund will be subject to substantially the same risks as those associated with the direct ownership of securities held by the Targeted ETFs. Additionally, Targeted ETFs are also subject to the “ETF Risks” described above.
Tax Benefits. Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.
Dividends. Past dividend payments are not a guarantee of future dividend payments.
For more information about the risks of investing in the Fund, see the section in the Fund’s Prospectus titled “Additional Information About the Fund - Principal Risks of Investing in the Fund.
Foreside Fund Services, LLC is the distributor for this fund.