Gadsden Dynamic Multi-Asset ETF

Data updated: 2021-01-14

C000203660 — Gadsden Dynamic Multi-Asset ETF. Emerging Markets Real Estate · $83.47M AUM · 0.77% expense ratio. Holdings, fees, performance and SEC filings.

C000203660 Fund Overview

Gadsden Dynamic Multi-Asset ETF is a US ETF managed by ETF Series Solutions, categorised as Emerging Markets Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US ETF
Manager: ETF Series Solutions
Category: Emerging Markets Real Estate
Assets under management: $83.47M
SEC CIK: 0001540305
SEC series ID: S000062882
Share class ID: C000203660

C000203660 Investment Objective and Strategy

Gadsden Dynamic Multi-Asset ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETF Series Solutions.

Investment objective

The Gadsden Dynamic Multi-Asset ETF (the Fund or the Multi-Asset Fund) seeks total return.

Principal investment strategy

The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing (i) approximately 80% of its total assets with exposure to a variety of asset classes, geographies, and market capitalizations generally based on a long-term view of macroeconomic factors (the strategic sleeve) and (ii) approximately 20% of its total assets to add or reduce exposure to one or more asset classes generally based on a short-term view of the market (the tactical sleeve). The Funds investment adviser, Gadsden, LLC (the Adviser), selects the asset classes to be included in the strategic and tactical sleeves, rather than individual securities or other instruments. For each asset class in which the Fund invests, the Funds sub-adviser will determine whether the Fund will invest directly in securities or other instruments of such asset class or indirectly through one or more pooled vehicles (e.g., other ETFs) that primarily invest in such securities or other instruments.

Consequently, the Funds investments in other investment companies may range from 0% to 100% of the Funds portfolio. The Funds strategic sleeve invests in a variety of asset classes (e.g., currencies, equities, fixed income instruments, real assets, commodities), geographies (including emerging markets), and market capitalizations based on the Advisers assessment of the long-term (typically more than three years) correlation of such segments to each other and their correlation and sensitivity to macroeconomic factors (e.g., inflation, employment, interest rates). The Adviser considers such correlations in seeking to create a blend of investments across multiple asset classes that will grow in value across rising and falling markets. The Fund may focus its investments in certain asset classes, sectors, regions, or countries, and in companies of any market capitalization, which allocations may change over time.

Additionally, the Fund may invest in assets classes that are considered lower-risk (e.g., inflation-linked bonds or fixed income securities), higher-risk (e.g., equities or real estate investment trusts (REITs), or a mix of both groups. From time to time, the Funds strategic sleeve may be comprised of significantly more or less than 80% of the Funds total assets (e.g., when the Adviser believes that the Funds strategic sleeve is more or less likely to achieve greater total return than the tactical sleeve). The Funds tactical sleeve is expected to be approximately 20% of the Funds total assets, which may increase or decrease depending on the market environment and investment opportunities perceived by the Adviser. The Funds tactical sleeve employs a shorter-term (typically less than three years) view of market opportunities and threats than the Funds strategic sleeve and is designed to adjust the overall portfolio risk/reward profile either higher or lower.

The Adviser makes allocation decisions within the tactical sleeve based on its judgment of the projected investment environment for particular asset classes, the attractiveness of each asset class, and expected future returns of each asset class. Within the tactical sleeve, the Fund may invest globally in any asset class and may at times have significant exposure to a single asset class. The Funds portfolio construction blends fundamental and quantitative methods to select investments across a variety of global asset classes, including corporate, government (U.S. or foreign), inflation-linked, and high-yield debt instruments (also known as junk bonds); cash and cash equivalents; commodity interests (including foreign currencies, precious metals, and other physical or non-physical commodities); and REITs.

The Funds investments in fixed income instruments may include those of any maturity or credit quality. The Funds portfolio may also utilize inverse, leveraged, and inverse leveraged ETVs (defined below) to obtain exposure to one or more asset classes. The Fund may gain exposure to an asset class selected by the Adviser by investing directly in securities or other instruments of such asset class or in a pooled vehicle that seeks to track the performance of such asset class (including ETFs, exchange-traded notes (ETNs), or exchange-traded commodities (ETCs) (collectively, exchange-traded vehicles (ETVs)). The Fund may invest in futures contracts to gain long or short exposure to one or more asset classes. Investments in derivative instruments, such as futures, have the economic effect of creating financial leverage in the Funds portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments.

Financial leverage will magnify, sometimes significantly, the Funds exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Funds portfolio. To the extent the Fund invests in such derivative instruments, the value of the Funds portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 (the 1940 Act) or to meet redemption requests. The Fund will generally sell securities or other instruments when better opportunities become available or when seeking to adjust the weighting of the two sleeves in the Funds portfolio or the weighting of individual assets classes within a particular sleeve.

C000203660 Costs and Fees

C000203660 costs about $77 per $10,000 invested per year in fund expenses.

Net expense ratio: 0.77%
Gross expense ratio: 0.77%
Portfolio turnover: 369%
Brokerage commissions: 20.12 bps of average net assets (SEC N-CEN)

C000203660 Cashflows

Over the 12 months to 2020-10, Gadsden Dynamic Multi-Asset ETF had net inflows of $32.47M, from monthly SEC N-PORT filings.

Month	Net flow
2020-10	$2.20M
2020-09	$10.22M
2020-08	$5.86M
2020-07	$2.72M
2020-06	$4.51M
2020-05	$0

C000203660 Debt Constituents

No individual debt constituents are reported in Gadsden Dynamic Multi-Asset ETF's latest SEC N-PORT filing.

C000203660 Prospectus and SEC Filings

Official Gadsden Dynamic Multi-Asset ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Emerging Markets Real Estate funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.