ARB 

AltShares Merger Arbitrage ETF

 Objective

The Fund seeks to provide investment results that correspond, before fees and expenses, to the performance of the Water Island Merger Arbitrage USD Hedged Index. The Index is designed to reflect a pure-play, global merger arbitrage strategy investing in definitive, publicly announced mergers and acquisitions. LEARN MORE

 Why ARB?

  • Provides investors with broad exposure to a merger arbitrage strategy which seeks to provide an independent return stream with low volatility and low correlation to stocks and bonds

  • Designed by experts in event-driven investing with 20 years of experience managing a daily liquidity merger arbitrage fund

  • Utilizes a pure-play approach to merger arbitrage, investing solely in definitive, publicly announced transactions and fully hedging stock-for-stock deals with short acquirer positions

  • Seeks to capture merger arbitrage spreads, excluding deals with undefined return opportunities

  • Implements rules-based risk mitigation via currency hedging, liquidity constraints, and position sizing relative to standalone downside assumptions and market-implied probability of deal success

  • Portfolio is reconstituted and rebalanced twice per month to capitalize on the continually evolving mergers and acquisitions deal universe

  • Passive ETF structure can provide benefits of tax efficiency, intraday liquidity, and daily holdings transparency

Downloads

Net asset value (NAV) represents the value of each share's portion of the fund's underlying net assets (including cash) at the end of the trading day. Market price represents the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 pm Eastern time). 

Median Bid/Ask Spread Percentage is based on Rule 6c-11(c)(1)(v). To calculate the median bid-ask spread the fund, (i) identifies the ETF’s National Best Bid and Offer ("NBBO") as of the end of each 10-second interval during each trading day of the last 30 calendar days; (ii) divides the difference between each such bid and offer by the midpoint of the NBBO; and (iii) identify the median of those values.

The performance shown represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. Performance data over 1 year is annualized. 

The Premium/Discount chart shows the difference between the daily market price of the Fund’s shares and the Fund’s net asset value (“NAV”). The daily market price is calculated using the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 pm Eastern time). The data presented in the chart and table above represent past performance and cannot be used to predict future results.

IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio, and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. 

Brokerage commissions may apply, and will reduce returns. Please visit the glossary for definitions of terms.

Risks:  Investments are subject to risk, including possible loss of principal. The fund is new and there can be no assurance that the fund will achieve its investment objectives. The fund is non-diversified and is expected to be concentrated in certain industries and sectors as the underlying index and may be more sensitive to market or other developments that significantly affect those industries.

The fund uses investment techniques with risks that are different from those ordinarily associated with equity investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the fund invests maybe renegotiated or terminated, in which case the fund may realize losses) and short sale risk (in that the fund will suffer a loss if it sells a security short and the value of the security rises rather than falls).  Short sales by a Fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

 

The fund may invest in derivatives (such as forwards, futures including foreign forward currency contracts, options and swaps), which may cause the fund to be susceptible to credit risk and currency fluctuations.  Derivatives may be more sensitive to changes in market conditions and may amplify the risk of loss for the fund.  The fund may experience high portfolio turnover which could result in higher transaction costs and taxes.

Shares of the fund may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of fund shares may be at, above, or below their net asset value ("NAV") and will fluctuate with changes in the NAV as well as with supply and demand in the market for the shares. The market price of fund shares may differ significantly from their NAV during periods of market volatility. Shares of the fund may only be redeemed directly with the fund at NAV by Authorized Participants, in large creation units. There can be no guarantee that an active trading market for fund shares will develop or be maintained or that their listing will continue or remain unchanged. Buying or selling fund shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

Before investing, carefully consider the fund’s investment objectives, risks, and charges and expenses. The fund’s prospectus contains this and other important information. Click here to obtain a copy of the current prospectus. Read the prospectus carefully before you invest. 

Distributed by Foreside Financial Services, LLC. Advised by Water Island Capital, LLC.

 

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