ESSIX — Essential 40 Stock Fund
Data updated: 2024-10-28
ESSIX — Essential 40 Stock Fund. United States Large Cap Blend / Core Equity · $74.99M AUM · 0.70% expense ratio. Holdings, fees, performance and SEC filings.
ESSIX Fund Overview
ESSIX — Essential 40 Stock Fund is a US mutual fund managed by Northern Lights Fund Trust II, categorised as United States Large Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Northern Lights Fund Trust II
- Category: United States Large Cap Blend / Core Equity
- Assets under management: $74.99M
- 1-year return: 20.2%
- Ticker: ESSIX
- SEC CIK: 0001518042
- SEC series ID: S000045536
- Share class ID: C000141762
ESSIX Investment Objective and Strategy
Essential 40 Stock Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust II.
Investment objective
The investment objective of the Essential 40 Stock Fund (the Fund) is to seek to track, before fees and expenses, the performance of the Essential 40 Stock Index.
Principal investment strategy
The Fund, under normal market conditions, invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of companies that comprise the Essential 40 Stock Index (the Index), which measures the investment return of the equity securities of forty blue-chip U.S companies. Generally, the Adviser anticipates that the Fund will hold all forty of the securities that comprise the Index in proportion to their weightings in the Index. Under certain circumstances, however, the Fund may purchase a sample of securities in the Index if it is not possible or practicable to replicate the Index. There also may be instances in which the Adviser may choose to underweight or overweight a security in the Index, purchase securities not in the Index that the Adviser believes are appropriate to substitute for certain securities in the Index, or utilize various combinations of other available investment techniques.
The circumstances that would cause the Adviser to hold a representative sampling of the Index include, but are not limited to, the following circumstances: the Fund may sell securities that are represented in the Index in anticipation of their removal from the Index; the Fund may purchase securities not represented in the Index in anticipation of their addition to the Index; or there may be corporate actions resulting in a cash take-over or bankruptcy which are examples of events that would cause the Adviser to sell a security. The Fund may also temporarily invest in securities not included in the Index that are expected to be correlated with the securities included in the Index. To manage risk, the Fund may also invest in S&P 500 futures and options when the Adviser determines that such investments would benefit the Fund.
The Fund will normally limit its investment in S&P 500 futures and options to 5% or less of its net assets, although it can invest up to 20% of its net assets in such instruments. Given the Funds investment objective of attempting to track the Index, the Fund does not follow traditional methods of active investment management, which may involve buying and selling securities based upon analysis of economic and market factors. The Adviser, however, reserves the ability to underweight or overweight stocks in the Index or to utilize S&P 500 futures or options to manage risk as it deems necessary. The Index is an Index created by FSH Trading, LLC (FSH) and is calculated and distributed by Solactive AG. The Index is an index of companies providing goods and services that are, in the view of FSH, essential to the American economy and way of life.
The Index has 40 components that are selected by a committee within FSH, using a qualitative approach to determine which companies, in the view of the committee, are irreplaceable and too essential to fail. At its inception on December 31, 2013, the Index was constructed as equally weighted, and the component weightings fluctuate going forward based on return performance alone. The Index, however, is rebalanced annually on the second calendar Monday of January. In the event that the NYSE, NASDAQ or AMEX are closed on that day, rebalancing occurs on the following business day. Each component of the Index is weighted equally at 2.5% when rebalanced but again may fluctuate as a result of individual stock performance until it is rebalanced again. The committee seeks to have the Index diversified across sectors and industries and seeks only to make changes to the Index components as the American economy evolves or market events and corporate actions necessitate.
ESSIX Holdings
Top 10 holdings of Essential 40 Stock Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Eli Lilly & Co. | 3.41% |
| Meta Platforms Inc | 3.23% |
| Oracle Corp. | 3.00% |
| Costco Wholesale Corporation | 3.00% |
| JPMorgan Chase & Co. | 2.90% |
| Berkshire Hathaway Inc. | 2.87% |
| Chubb Ltd. | 2.79% |
| International Business Machines Corporation | 2.79% |
| Palo Alto Networks Inc | 2.78% |
| Lockheed Martin Corporation | 2.75% |
ESSIX Portfolio Allocation
Asset-class allocation of Essential 40 Stock Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 99.1% |
| Cash & Equivalents | 0.7% |
ESSIX Performance
Total returns for ESSIX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 20.2% |
| 3 years (annualised) | 9.0% |
ESSIX Risk Information
Risk metrics for ESSIX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 12.6%
ESSIX Costs and Fees
ESSIX costs about $70 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.70%
- Gross expense ratio: 1.05%
- Portfolio turnover: 24%
- Brokerage commissions: 0.82 bps of average net assets (SEC N-CEN)
ESSIX Cashflows
Over the 12 months to 2024-08, Essential 40 Stock Fund had net inflows of $21.85M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-08 | $2.89M |
| 2024-07 | $4.86M |
| 2024-06 | $1.69M |
| 2024-05 | $883.26K |
| 2024-04 | −$1.85M |
| 2024-03 | $204.04K |
ESSIX Debt Constituents
No individual debt constituents are reported in Essential 40 Stock Fund's latest SEC N-PORT filing.
ESSIX Prospectus and SEC Filings
Official Essential 40 Stock Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2024-09-27
- Prospectus (485BPOS) — filed 2023-09-27
- Prospectus (485BPOS) — filed 2022-09-28
- Portfolio holdings (N-PORT) — filed 2024-10-28
- Portfolio holdings (N-PORT) — filed 2024-07-25
- Portfolio holdings (N-PORT) — filed 2024-04-18
- Annual census (N-CEN) — filed 2024-08-14
- Annual census (N-CEN) — filed 2023-08-14
Related Funds
Other United States Large Cap Blend / Core Equity 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.