DVBY — VistaShares DIVBoost High Yield Bond Distribution ETF

DVBY Fund Overview

DVBY — VistaShares DIVBoost High Yield Bond Distribution ETF is a US ETF managed by Tidal Trust III, categorised as United States Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Tidal Trust III
• Category: United States Blend / Core Equity
• Ticker: DVBY
• SEC CIK: 0001722388
• SEC series ID: S000098904
• Share class ID: C000268639

DVBY Investment Objective and Strategy

VistaShares DIVBoost High Yield Bond Distribution ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Tidal Trust III.

Investment objective

The Funds primary investment objective is to seek current income.

Principal investment strategy

The Fund is an actively managed exchange-traded fund (ETF) that seeks current income and capital appreciation. The Funds strategy involves: (1) investing (directly, indirectly or synthetically) in high-yield corporate bonds (junk bonds) and in exchange-traded funds (ETFs) that primarily invest in high-yield bonds; and (2) generating option premiums from selling (writing) options on high-yield bond-related indices and high-yield bond-focused ETFs. Additionally, the Fund will maintain an allocation to cash, money market funds or U.S. Treasuries to meet collateral requirements for derivatives transactions and to provide liquidity for operational purposes. Bond Strategy High-yield bonds are fixed-income securities rated below investment grade by a nationally recognized statistical rating organization (NRSRO), or, if unrated, determined by VistaShares Advisors LLC (the Sub-Adviser) to be of comparable quality.

High-yield bonds are inherently speculative. These securities typically offer higher yields than investment-grade bonds, but carry greater risks, including increased credit risk and price volatility. The Fund may invest directly in high-yield bonds across a range of industries, issuers, and maturities. The Fund may also obtain exposure through investments in other ETFs that primarily hold high-yield bonds and that provide diversified exposure to the U.S. high-yield bond market. The Sub-Adviser evaluates investment opportunities based on factors such as credit quality, yield, maturity, duration, and overall fit within the Funds risk/return profile. In selecting among individual high-yield bonds and high-yield bond ETFs, the Sub-Adviser may consider market liquidity, relative value, and sector allocation.

The combination of direct bond holdings and ETF investments provides the Fund with flexibility to manage liquidity, maintain diversified exposure, and efficiently adjust portfolio positioning in response to changing market conditions. Direct/Synthetic Investments : The Fund will invest in the high-yield bonds directly, or indirectly (synthetically) through the use of options and swaps (as described below) on indices that track high-yield bonds or on other ETFs that primarily invest in high-yield bonds. The Fund may utilize listed options on such indices and ETFs to achieve synthetic exposure to the Funds portfolio securities. The Fund primarily employs short-dated (a month or less) in-the-money call options (options with strike prices below the current market price of the underlying index or ETF, offering immediate intrinsic value).

These options allow the Fund to synthetically replicate the performance of the underlying exposure without direct ownership of the bonds themselves. The Fund may also utilize other option strategies to achieve similar synthetic exposure, including purchasing call options and selling put options with identical strike prices. These derivatives strategies enable the Fund to respond flexibly to market conditions, liquidity constraints, or other factors that may affect the availability or pricing of options or swap agreements. For additional details about the Funds use of options, please refer to the section of the Prospectus entitled Additional Information About the Fund. In addition to options, the Fund may enter into swap agreements with financial institutions. These swap agreements are designed to synthetically replicate the performance of the securities in the Funds portfolio.

The agreements will have specified durations, which will typically coincide with the strategys reconstitution periods, but may range from one day to more than a year. Through each swap agreement, the Fund and the financial institution will agree to exchange the return (or differentials in rates of return) based on the performance of a particular index, ETF, or other reference asset. The gross return (meaning the return before deducting any fees or expenses) to be exchanged or swapped between the parties is calculated with respect to a notional amounta predetermined dollar value representing the particular underlying exposure that the Fund seeks to replicate synthetically. Options Strategies Seeking Premiums Separately, the Fund employs an actively managed options overlay strategy designed to generate premiums.

Generally speaking, the Fund sells (writes) options on (i) indices that track high-yield bonds or (ii) on other ETFs that primarily invest in high-yield bonds (together, the Underlying Securities). The Fund receives premiums from counterparties that pay for the right to buy or sell at a set price. These premiums are an important driver of the Funds distributions but do not always represent income, depending on the outcome of the overall options transaction. Distributions may include a significant portion classified as return of capital (ROC). ROC generally represents a return of a shareholders invested capital rather than traditional income such as dividends or interest. Premium levels are influenced by market conditions, particularly volatility, and the Adviser may adjust the Funds options strategies depending on the outlook for the Underlying Securities.

While option selling may provide premium opportunities, it may also limit upside gains or increase downside risk ( i.e., the Fund may experience larger losses than if it invested directly in the Underlying Securities). The options strategy most frequently utilized by the Fund is a covered call spread, which involves selling a call option while buying another at a higher strike price, with both profit and loss capped. See the prospectus section titled Additional Information About the Fund for a list of the options strategies that the Fund may utilize, together with a description of each strategy. DIVBoost Target Distributions As discussed above, the Funds options strategies are designed to generate option premiums to support cash distributions. The Fund has established a target distribution level equal to approximately double the annualized distribution yield of iShares iBoxx $ High Yield Corporate Bond ETF (HYG) (the DIVBoost Target).

For example, if the HYGs annualized distribution yield is 4%, the Funds aim would be to make cash distributions at a rate of approximately 8%. The DIVBoost Target is not a guarantee, nor does it represent a yield or total return. It is distinct from the Funds SEC yield, which reflects the Funds income based on standardized calculations and may be significantly lower than the DIVBoost Target. Actual distributions may be higher or lower than the DIVBoost Target depending on market conditions and the Funds results. To the extent the Funds returns fall short of the DIVBoost Target, distributions will reduce the Funds net asset value (NAV). Although stated as an annualized target, distributions are paid more frequently, and any amount the Fund pays in excess of its earnings will reduce NAV. If the Funds NAV declines over time, the dollar amount of future distributions will also decrease.

Distributions may include a significant portion classified as ROC. ROC generally represents a return of a shareholders invested capital rather than traditional income such as dividends or interest. See the prospectus section titled Additional Information About the Fund for more information about option premiums and ROC. Cash and Treasuries The Fund will hold cash or short-term U.S. Treasury securities, as well as money market vehicles, including money market funds. These securities serve a dual purpose: providing collateral for the Options Strategies and contributing to the Funds income generation. Fund Characteristics The Funds investment strategy is expected to result in high portfolio turnover on an annual basis. Under normal circumstances, the Fund will invest at least 80% of the value of its net assets, plus borrowings for investment purposes, in a combination of high yield bonds or derivatives instruments that provide exposure to high yield bonds.

For purposes of compliance with this investment policy, derivative instruments will be valued at their notional value. The Fund will seek to provide cash distributions at least monthly. There is no guarantee that the Funds investment strategy will be properly implemented, and an investor may lose some or all of its investment. There is no guarantee that the Fund will achieve the DIVBoost Target with respect to any particular distribution or over any specific period of time. The Funds exposure to fixed-income securities may significantly influence the Funds overall performance. If the value of the Funds fixed-income securities portfolio declines, such losses may fully offset, or even exceed, the income generated by the options portfolio, resulting in negative returns. The pursuit of income does not protect the Fund from losses associated with adverse movements in its fixed-income securities portfolio.

To the extent the Funds performance is less than the DIVBoost Target, the Funds NAV will decrease as a result of distributions made in furtherance of the DIVBoost Target. A decline in the Funds NAV over time would reduce the total amount of each subsequent cash distribution. HYG HYG seeks to track the investment results of the Markit iBoxx USD Liquid High Yield Index, which is composed of U.S. dollar-denominated, high yield corporate bonds issued in the United States. The Index is designed to broadly represent the liquid U.S. high yield bond market and is a modified market-value-weighted index that caps each issuer at 3%. As of February 28, 2025, the Index included approximately 1,226 constituents, with a significant portion represented by companies in the consumer goods and services sector.

The composition of the Index is subject to change over time. You can find HYGs prospectus and other information about the fund, including the most recent reports to shareholders, online by reference to the Investment Company Act File No. 811-09729 through the SECs website at www.sec.gov . The information in this prospectus regarding HYG comes from its filings with the SEC. You are urged to refer to the SEC filings made by HYG and to other publicly available information (e.g., the ETFs annual reports) to obtain an understanding of HYGs business and financial prospects. The description of HYGs principal investment strategies contained herein was taken directly from HYGs prospectus, dated June 27, 2025. This document relates only to the securities offered hereby and does not relate to the shares of HYG or other securities of HYG.

The Fund has derived all disclosures contained in this document regarding HYG from the publicly available documents. In connection with the offering of the securities, none of the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates has participated in the preparation of such documents or made any due diligence inquiry with respect to HYG. None of the Fund, the Trust, the Adviser, the Sub-Adviser, or their respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding HYG is accurate or complete. Furthermore, the Fund cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of HYG (and therefore the price of HYG at the time we price the securities) have been publicly disclosed.

Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning HYG could affect the value received with respect to the securities and therefore the value of the securities. None of the Fund, Tidal Trust III (the Trust), the Adviser, the Sub-Adviser or their respective affiliates makes any representation to you as to the performance of HYG.

DVBY Costs and Fees

DVBY costs about $92 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.92%
• Gross expense ratio: 0.92%

DVBY Debt Constituents

No individual debt constituents are reported in VistaShares DIVBoost High Yield Bond Distribution ETF's latest SEC N-PORT filing.

DVBY Prospectus and SEC Filings

Official VistaShares DIVBoost High Yield Bond Distribution ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-01-08

Related Funds

Other United States Blend / Core Equity funds tracked on ABC INVEST:

• International Small Company Portfolio (DFISX)
• iShares Preferred and Income Securities ETF (PFF)
• Guggenheim Macro Opportunities Fund (GIOAX)
• Emerging Markets Portfolio (DFEMX)
• Eaton Vance Global Macro Absolute Return Advantage Fund (EGRAX)

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.