FATT — Fat Tail Risk ETF

FATT Fund Overview

FATT — Fat Tail Risk ETF is a US ETF managed by Collaborative Investment Series Trust, categorised as United States Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Collaborative Investment Series Trust
• Category: United States Equity
• Assets under management: $1.79M
• Ticker: FATT
• SEC CIK: 0001719812
• SEC series ID: S000071925
• Share class ID: C000227542

FATT Investment Objective and Strategy

Fat Tail Risk ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Collaborative Investment Series Trust.

Investment objective

The Fat Tail Risk ETF (the Fund) seeks to provide capital appreciation.

Principal investment strategy

The Fund is actively managed and seeks to achieve its investment objective by investing in (i) cash and U.S. government bonds, (ii) exchange-traded funds (ETFs) that invest in gold related derivatives (iii) ETFs that invest U.S. equity securities of any market capitalization, (iv) ETFs that invest in U.S. treasuries, (v) equity securities of any capitalization, (vi) volatility and inverse volatility ETFs, and (vii) exchange traded notes (ETNs) and leveraged and inverse ETFs and ETNs that seek to provide the inverse performance of stock indices, Treasury Bonds, and volatility ETFs. The Fund may also sell options on these securities in order to generate income for the Fund from premiums. Tail Risk in the Funds name refers to the financial risk of an asset or portfolio of assets moving more than three standard deviations from its current price, above the risk of a normal distribution.

In a normal bell curve, the most probable returns are concentrated in a bulge at the center of the distribution curve, whereas the less probable, more extreme returns are towards the edges referred to tails. The frequency of market disruptions and volatility have led to fatter tails than a normal bell curve might predict. The Funds investment strategy is designed to provide positive returns during periods of significant market disruptions. The Adviser uses multiple investment models that combine market trend and counter trend following, and market analysis across asset classes to determine when to buy, sell, or hold a security. The Adviser uses trend following models to track and purchase securities that are perceived as increasing in value and to avoid securities that are perceived to be decreasing in value.

Furthermore, the Adviser may use intermarket analysis to look for divergences between asset classes that tend to either move together or move apart. The Fund may also utilize a put and/or call option strategy to manage the risk of a significant negative movement in the value of domestic equities over rolling one-month periods. Buying a put option provides the purchaser the right to sell the underlying index to the put seller at a specified price within a specified time period. When the Fund purchases a call option, the Fund has the right, but not the obligation, to buy a stock or other asset at a specified price (strike price) within a specific time period. The Fund decides whether to purchase put or call options based on a number of factors such as strike prices and expiration date. There is an associated cost (premium), but in the event the underlying index declines in value, the Funds option ownership may reduce the downside risk.

By employing the option strategy, the Adviser seeks growth with reduced volatility as compared to investments in cash and U.S. bonds. Because of the tactical nature of the Advisers strategy, the Fund may engage in frequent trading of its portfolio which will result in a higher portfolio turnover rate.

FATT Costs and Fees

FATT costs about $115 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.15%
• Gross expense ratio: 1.20%

FATT Cashflows

Over the 12 months to 2021-12, Fat Tail Risk ETF had net inflows of $5.48M, from monthly SEC N-PORT filings.

FATT Debt Constituents

No individual debt constituents are reported in Fat Tail Risk ETF's latest SEC N-PORT filing.

FATT Prospectus and SEC Filings

Official Fat Tail Risk ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2021-06-09
• Portfolio holdings (N-PORT) — filed 2022-02-28
• Portfolio holdings (N-PORT) — filed 2021-11-26
• Portfolio holdings (N-PORT) — filed 2021-08-30

Related Funds

Other United States Equity funds tracked on ABC INVEST:

• Strategic Advisers Fidelity Alternatives Fund (FSAOX)
• Goldman Sachs Tactical Tilt Overlay Fund (TTIFX)
• PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS)
• Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF)
• Breckinridge Municipal Bond Completion Fund (BCAGX)

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.