RYZZ — RYZZ Managed Futures Strategy Plus ETF
Data updated: 2020-06-26
RYZZ — RYZZ Managed Futures Strategy Plus ETF. Commodity · $2.15M AUM · 0.99% expense ratio. Holdings, fees, performance and SEC filings.
RYZZ Fund Overview
RYZZ — RYZZ Managed Futures Strategy Plus ETF is a US ETF managed by ETF Series Solutions, categorised as Commodity. 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: Commodity
- Assets under management: $2.15M
- Ticker: RYZZ
- SEC CIK: 0001540305
- SEC series ID: S000065059
- Share class ID: C000210702
RYZZ Investment Objective and Strategy
RYZZ Managed Futures Strategy Plus ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETF Series Solutions.
Investment objective
The RYZZ Managed Futures Strategy Plus ETF (the Fund) seeks positive absolute and risk-adjusted returns.
Principal investment strategy
The Fund is an actively-managed exchange-traded fund (ETF). It does not seek to replicate the performance of a specific index; instead, the Fund seeks to achieve its investment objective by blending a dynamic equity strategy with complementary long/short managed futures strategies that seek to achieve positive returns that have a low correlation to the overall economic environment, and that have a relatively low correlation to more traditional index-based and long-only investment strategies. There are no geographic limits on the market exposure of the Funds assets. This flexibility allows the Fund to make investments or gain exposure globally , including in emerging markets. The Fund seeks to gain exposure, primarily through the use of equity securities (across market capitalizations ) and futures.
The Fund may also invest in other ETFs or exchange-traded notes, through which the Fund can participate in the performance of other financial instruments. The Fund implements its strategy using proprietary quantitative models that seek to identify repeatable price and volatility patterns in the markets in which it will trade. Once a price or volatility pattern is determined, the Fund will take either a long or short position in the investment. The size of the position taken will be determined using a systematic assessment of the pattern and its likelihood of continuing as well as the advisers assessment of the investments potential risk /reward ratio . The Fund will generally hold long equities positions and complement those with a variety of offensive and defensive futures positions that will vary depending upon the market environment.
The Funds exposure to short positions is expected to be obtained primarily through index futures contracts. Depending on the advisers or sub-advisers assessment of current market conditions, the Fund may maintain a total net long market exposure, meaning that the Funds long exposure will be greater than its short exposure; neutral aggregate exposure, where the long and short exposure will be equal; or total net short exposure, meaning that the Funds short exposure will be greater than its long exposure. At times the Funds positions may be entirely long or short. The Funds index futures contracts will at times include volatility index (VIX) futures. VIX futures are contracts in which parties buy and sell the expectation of future volatility in the value of an index of equity securities (such as the S&P 500).
A VIX future references a particular market volatility index, which measures market expectations of near-term volatility in the value of a specified equity index conveyed by prices of options on that equity index. Under normal market conditions, the adviser expects that a significant portion of the Funds exposure will be attained through the use of futures contracts, although it may also gain exposure through direct investments. Futures are a type of derivative instrument. Derivatives are instruments that have a value based on another instrument, exchange rate or index. Derivatives will primarily be used as an efficient means of implementing the strategy, but may also be used to increase gain, to effectively gain targeted exposure from the Funds cash positions, to hedge various investments and/or for risk management.
As a result of the Funds use of derivatives and to serve as collateral, the Fund may hold significant amounts of U.S. Treasury obligations, including Treasury bills, bonds and notes and other obligations issued or guaranteed by the U.S. Treasury, obligations of other sovereign governments or supranational entities, other short-term investments, including money market funds, and foreign currencies in which certain derivatives are denominated. Futures contracts are contractual agreements to buy or sell a particular currency, commodity or financial instrument at a pre-determined price in the future. The Funds use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying such future contract and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use futures or other derivatives that have a leveraging effect.
Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Funds exposure to an asset class and may cause the Funds net asset value (NAV) to experience greater volatility. When the Fund uses derivative instruments, the Fund will comply with SEC guidelines regarding asset coverage for such instruments, and may therefore hold a significant portion of its assets in cash and/or cash equivalents. The investment techniques employed by the Fund create leverage. As a result, the sum of the Funds investment exposures will regularly exceed the amount of the Funds net assets. These exposures may vary over time. The Fund expects gross notional exposure not to exceed 250% of the net asset value of the Fund under normal market conditions; gross notional exposure may be significantly different (higher or lower) as deemed necessary by Funds adviser or sub-adviser.
The Fund expects net notional exposure to be in the range of short 150% to long 250% under normal market conditions. The Fund will purchase a particular instrument when the adviser believes it makes a complementary addition to the portfolio, either as an opportunity or a portfolio hedge. Conversely, the Fund will consider selling a particular instrument when the opportunity set appears exhausted for that trade. In addition, investment decisions will take into account an investments contribution to the Funds overall volatility. The Funds investment strategies may involve active and frequent trading resulting in high portfolio turnover.
RYZZ Costs and Fees
RYZZ costs about $99 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.99%
- Gross expense ratio: 1.01%
- Brokerage commissions: 40.10 bps of average net assets (SEC N-CEN)
RYZZ Cashflows
Over the 12 months to 2020-04, RYZZ Managed Futures Strategy Plus ETF had net inflows of $0, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-04 | $0 |
| 2020-03 | $0 |
| 2020-02 | $0 |
RYZZ Debt Constituents
No individual debt constituents are reported in RYZZ Managed Futures Strategy Plus ETF's latest SEC N-PORT filing.
RYZZ Prospectus and SEC Filings
Official RYZZ Managed Futures Strategy Plus ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
Related Funds
Other Commodity 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.