Tax Drag Problem: Tactical strategies in taxable accounts pay short-term capital gains taxes, creating a “tax drag” that erodes compounded returns.
Our ETF Solution: AlphaDroid ETFs embed tactical strategies within the ETF wrapper so that monthly portfolio changes may benefit from the ETF exchange-in-kind process, which can help defer certain capital gains.
Not just a Market Slice: While most ETFs focus on a slice of the market, such as a sector, factor, or theme, EZRO and EZMO are automated, rules based, tactical portfolio management systems that evaluate dozens of ETFs each month seeking to select a portfolio of the four things we believe investors want most.
Important Disclosures and Risks:
Momentum Leaders: “Momentum” refers to an investment strategy that seeks to identify securities demonstrating recent price strength, with the expectation that upward or downward trends may continue for a period of time.
Defensive Leaders: “Defensive Leaders” typically include asset classes or positions that may be less sensitive to broad market declines, such as cash, short-term bonds, or low-volatility equity holdings. These allocations do not eliminate the risk of loss.
All investments carry risk, including the risk of loss of principal.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the Fund. You may obtain a prospectus and, if available, a summary prospectus by calling 877-376-0082 or visiting www.alphadroidetfs.com. Please read the prospectus or summary prospectus carefully before investing.
Both the AlphaDroid Broad Markets Momentum ETF (EZMO) and AlphaDroid Defensive Sector Rotation ETF (EZRO) are recently organized investment companies with limited operating histories. As passively managed “fund-of-funds,” they invest in other ETFs and are subject to the risks of those underlying funds. These may include exposure to equities, fixed income, commodities, international investments, and derivatives. These holdings may be more volatile and subject to greater risk than traditional investments.
The Funds may frequently trade securities, which can increase transaction costs and create greater tax exposure. Although the ETF structure offers potential tax advantages by deferring capital gains, it does not eliminate tax risk. Nothing herein should be considered tax advice.
Momentum strategies involve the risk that recent trends may reverse unexpectedly. Defensive allocations may reduce losses in down markets but do not guarantee protection from loss. The Indexes powering these ETFs utilize artificial intelligence, adaptive algorithms, feedback loops, and fuzzy logic. There is no assurance these models will perform as intended under all market conditions.
ETFs trade like stocks, fluctuate in market value, and may trade at prices above or below their net asset value. Shares are not individually redeemable and must be bought or sold through a broker. Brokerage commissions and ETF expenses will reduce investment returns.
The Funds are non-diversified, which means they may be more sensitive to the risks of fewer holdings. Tracking error may occur and performance may deviate from the underlying Index, particularly during periods of high volatility or market stress.
Teucrium Investment Advisors, LLC, a wholly owned subsidiary of Teucrium Trading, LLC, is the investment adviser. PINE Distributors LLC is the distributor for the Funds. PINE Distributors LLC is not affiliated with Teucrium Trading, LLC or Teucrium Investment Advisors, LLC.
There is no guarantee the strategy will be successful in limiting losses during periods of market decline. All investments carry risk, including the risk of loss of principal.
TUCRM-5198417-02/26