Frequently Asked Questions, FAQs
ATACX
PROCESS
ATACX uses a proprietary approach to position more defensively or offensively in a portfolio. The process is consistent and repeatable.
ATACX positions into Treasury ETFs when our indicators are giving a defensive signal and into equity ETFs when they are giving an offensive signal.
While the ATAC Funds share the focus of rotating risk-on, risk-off, the way the three achieve their objectives are different.
The ATAC Rotation Fund (ATACX) is a mutual fund that uses the short-term behavior of Utilities and Treasuries to determine whether to be risk-on in equities, or risk-off in Treasuries. When risk-on, ATACX can rotate across large-caps, small-caps, and emerging markets. When risk-off, ATACX can rotate across long duration Treasuries and short duration Treasuries.
The ATAC US Rotation ETF (RORO) is an alternative exchange traded fund which uses a different risk-on, risk-off approach by tracking the short-term behavior of Lumber relative to Gold. When risk-on, RORO can rotate into a combination of small-caps and cyclical large-cap ETFs. When risk-off, RORO rotates into long duration Treasuries.
The ATAC Credit Rotation ETF (JOJO) is a bond exchange traded fund which uses a different risk-on, risk-off approach by tracking the short-term behavior of Utilities relative to the broader stock market. When risk-on, JOJO can rotate into a high yield bond ETFs. When risk-off, JOJO rotates into long duration Treasuries.
Both the timing of the indicators, and the opportunity sets, are different among ATACX, RORO, and JOJO which can result in very different week to week results, all while seeking to achieve the longer term objective of being tactical risk rotation strategies.
The approach attempts to evaluate conditions which favor higher or lower volatility in risk assets.
The mutual fund ATACX and exchange traded funds RORO and JOJO position defensively when odds favor rising volatility and offensively when odds favor a falling volatility environment.
ATACX use broad equity and bond exchange traded funds (ETFs).
The indicators are evaluated on a weekly basis for potential rotations ATACX, Changes are made only when our proprietary signals suggest a directional change from offense to defense or defense to offense is warranted, and/or when relative momentum has changed.
CONSTRUCTION
ATACX use a proprietary approach to position more defensively or offensively in a portfolio. The process is consistent and repeatable.
ATACX positions into Treasury ETFs when our indicators are giving a defensive signal and into equity ETFs when they are giving an offensive signal.
We manage risks by using diversified ETFs and employing strategies that seek to decrease the beta in our portfolios ahead of periods of market stress. It is important to note that while the Funds can get defensive ahead of high volatility periods, this does not mean that volatility in the Funds will not be higher at times than the stock market’s. Rather, fund volatility characteristics tend to be different than a simple buy and hold passive index.
In our research, using bonds as the lower beta option is superior to cash and short positions over a full market cycle. The Funds are built to perform during a full market cycle which includes bull and bear market environments. Using cash and short positions can lead to significant underperformance during bull market periods.
ATACX may have up to 133% exposure when in offensive mode.
ATACX is intended to be an active risk management vehicle. As such, it is expected to have a high portfolio turnover which could exceed 1,000% on an annual basis, depending on market conditions.
Contact us at ATAC Funds.
EXPENSES & TERMS
The ATAC Rotation Fund is a mutual fund with an investor class/A share class (Ticker: ATACX) and an institutional share class (Ticker: ATCIX).
The ATAC Rotation Fund:
ATACX (Investor) – Gross expense ratio: 2.04%. Net expense ratio: 1.92%. Note this includes the acquired Fund fees on the ETFs in the portfolio.
ATCIX (Institutional) – Gross expense ratio: 1.82%. Net expense ratio: 1.67%. Note this includes the acquired Fund fees on the ETFs in the portfolio.
The Advisor has contractually agreed to waive a portion or all of its management fees and reimburse Fund expenses, in order to ensure that Total Annual Fund Operating Expenses (excluding AFFE, leverage/borrowing interest, interest expense, taxes, brokerage commissions and extraordinary expenses) do not exceed 1.74% of the average daily net assets of the Fund’s Investor Class shares and do not exceed 1.49% of the average daily net assets of the Fund’s Institutional Class shares.The Operating Expenses Limitation Agreement is indefinite, but cannot be terminated through at least May 1, 2022.
ATACX is available on most major brokerage platforms, including, but not limited to, Fidelity, Vanguard, Schwab, TD Ameritrade, Securities America, Scottrade, E*trade, UBS and Folio.
The ATAC Rotation Fund: The minimum initial investment is $2,500 for the investor class (Ticker: ATACX) and $25,000 for the institutional class (Ticker: ATCIX).
For ATACX, investors will receive a Form 1099 from their broker on an annual basis.
The Funds pays dividends annually in December based on accumulated dividends throughout the year from holdings. There may also be a capital gains distribution based on trading gains and losses.
OBJECTIVES & POSITIONING
ATACX seeks to achieve absolute returns over time.
Our goal is to educate our investors so that they can choose the offering or offerings that best suit their investment objectives. ATAC Funds fit into the alternative or tactical allocation bucket. It tends to act as a non-correlated alternative and can add significant diversification benefits over the course of a full market cycle.
The three funds, while highly tactical, use different opportunity sets, and different indicators for their rotations. The three fit within the satellite and alternative portions of a portfolio, and can both be used as diversifiers focused on the same objectives, but getting there in different ways.
JOJO is a highly tactical bond ETF which fits into the fixed income portion of a portfolio.
If there were an investment strategy that worked all of the time, everyone would follow it and it would stop working. The Funds are designed specifically to take advantage of the anomaly that you can position ahead of stock market volatility. Anomalies themselves have cycles, which can be either favorable or unfavorable for the types of risk rotations employed in the Funds. There will be months, quarters, or even longer that our strategies will underperform one benchmark or another, but this is true of any strategy that is successful over time. Furthermore, the potential to be defensive ahead of higher volatility regimes in equities makes the magnitude of potential outperformance during such periods significantly greater than might otherwise be obvious when looking at past performance in a lower volatility cycle.
We are dedicated to following a disciplined process with the core belief that over the course of a full market cycle, adhering to our process will reward our investors. Our broad philosophy is that true long-term outperformance does not come from being up more, but rather down less.
JOJO
PROCESS
The ATAC Credit Rotation ETF (Ticker: JOJO) approach attempts to evaluate conditions which favor credit spread widening in the bond market using the short-term behavior of the Utilities sector relative to the broad stock market as a risk trigger. When the Utilities sector is outperforming the broad stock market, JOJO positions offensively in high yield bond ETFs, and when the Utilities sector is under performing the broad stock market, JOJO positions defensively into Treasuries. Because the Utilities sector is the most bond-like sector of the stock market, its movement relative to the broad stock market has historically provided clues on potential future risk-on, and risk-off conditions.
The JOJO ETF uses a proprietary approach to position more defensively or offensively in a portfolio. The process is quantitatively and rules based driven.
JOJO uses high yield bond and Treasury exchange traded funds (ETFs).
The indicators are evaluated on a weekly basis for potential rotations in JOJO. Changes are made only when our proprietary signals suggest a directional change from offense to defense or defense to offense is warranted.
While the ATAC Funds share the focus of rotating risk-on and risk-off, the way the three achieve their objectives are different.
The ATAC Rotation Fund (ATACX) is a mutual fund that uses the short-term behavior of Utilities and Treasuries to determine whether to be risk-on in equities, or risk-off in Treasuries. When risk-on, ATACX can rotate across large-caps, small-caps, and emerging markets. When risk-off, ATACX can rotate across long duration Treasuries and short duration Treasuries.
The ATAC US Rotation ETF (RORO) is an exchange traded fund that uses a different risk-on, risk-off approach by tracking the short-term behavior of Lumber relative to Gold. When risk-on, RORO can rotate into a combination of small-caps and large-cap growth ETFs. When risk-off, RORO rotates into long duration Treasuries.
Both ATACX and RORO rotate between equities and treasuries, but the timing of the indicators and the opportunity sets are different for the two strategies, which can result in very different week to week results, all while seeking to achieve the longer term objective of being tactical risk rotation strategies.
JOJO is a bond fund ETF that fits in the fixed income portion of an asset allocation.
CONSTRUCTION
In offensive mode, JOJO can invest in high yield and junk bond ETFs. In defensive mode, JOJO can invest in long duration Treasuries.
We manage risks by using diversified ETFs and employing strategies that seek to decrease the credit risk exposure in our portfolios ahead of periods of market stress. It is important to note that while the ETF can get defensive ahead of high volatility periods where credit spreads widen and potentially hurt the returns of high yield bonds, this does not mean that volatility in the Fund will not be higher at times than high yield bonds or Treasuries at a moment in time. Rather, fund volatility characteristics tend to be different than a simple buy and hold passive index.
In our research, using Treasuries is superior to cash and short positions over a full market cycle. JOJO is built to perform during a full market cycle which includes bull and bear market environments. Using cash and short positions can lead to significant underperformance during bull market periods.
No. As a bond fund, JOJO is unlevered.
The ETF is intended to be an active risk management vehicle. As such, it is expected to have a high portfolio turnover which could exceed 1,000% on an annual basis, depending on market conditions.
Contact us at ATAC Funds.
EXPENSES & TERMS
The ATAC Credit Rotation ETF is an exchange traded fund, with the ticker of JOJO.
Gross expense ratio: 1.44%. Net expense ratio: 1.17%. The Fund’s investment adviser has contractually agreed to reduce its unitary management fee to 0.27% of the Fund’s average daily net assets through at least December 31, 2021. This agreement may be terminated only by, or with the consent of, the Fund’s Board of Trustees, on behalf of the Fund, upon sixty (60) days’ written notice to the Adviser.
You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in this explanation.
JOJO is an ETF available on most online discount brokers (Schwab, TD, Fidelity, Etrade, interactive brokers, etc) and other large and small broker/dealer platforms.
There is no minimum investment for JOJO.
For JOJO, investors will receive a tax statement from the brokerage platform selected to hold the shares. Fund distributions are generally taxable as ordinary income, qualified dividend income, or capital gains (or a combination), unless your investment is in an individual retirement account (“IRA”) or other tax-advantaged account. Distributions on investments made through tax-deferred arrangements may be taxed later upon withdrawal of assets from those accounts.
The ETF pays dividends on a monthly basis and capital gains annually.
OBJECTIVES & POSITIONING
JOJO seeks to achieve income and price appreciation over time.
Our goal is to educate our investors so that they can choose the offering or offerings that best suit their investment objectives. JOJO fits into the bond or fixed income bucket. It tends to act as a diversifier to traditional bond funds which can potentially benefit over the course of a full market cycle.
If there were an investment strategy that worked all of the time, everyone would follow it and it would stop working. The ETF is designed specifically to take advantage of the anomaly that you can position ahead of credit spread widening. Anomalies themselves have cycles, which can be either favorable or unfavorable for the types of risk rotations employed in the ETF. There will be months, quarters, or even longer that our strategies will underperform one benchmark or another, but this is true of any strategy that is successful over time. Furthermore, the potential to be defensive ahead of higher volatility regimes in equities makes the magnitude of potential outperformance during such periods significantly greater than might otherwise be obvious when looking at past performance in a lower volatility cycle.
We are dedicated to following a disciplined process with the core belief that over the course of a full market cycle, adhering to our process will reward our investors. Our broad philosophy is that true long-term outperformance does not come from being up more, but rather down less.
Both Funds, while highly tactical, use different opportunity sets, and different indicators for their rotations. The two fit within the satellite and alternative portions of a portfolio, and can both be used as diversifiers focused on the same objectives, but getting there in different ways.
JOJO is a highly tactical bond ETF which fits into the fixed income portion of a portfolio.
RORO
PROCESS
The ATAC US Rotation ETF (Ticker: RORO) approach attempts to evaluate conditions which favor higher or lower stock market volatility using the short-term movements of Lumber relative to Gold as a risk trigger. When Lumber is outperforming Gold, RORO positions offensively in US equities, and when Gold outperforms Lumber, RORO positions defensively into Treasuries. Because Lumber is tied to housing and reflation, its movement relative to Gold has historically provided clues on potential future risk-on, and risk-off conditions.
The RORO ETF uses a proprietary approach to position more defensively or offensively in a portfolio. The process is quantitatively and rules based driven.
RORO uses broad equity and bond exchange traded funds (ETFs).
The indicators are evaluated on a weekly basis for potential rotations in RORO. Changes are made only when our proprietary signals suggest a directional change from offense to defense or defense to offense is warranted.
While the ATAC Funds share the focus of rotating risk-on and risk-off, the way the three achieve their objectives are different.
The ATAC Rotation Fund (ATACX) is a mutual fund that uses the short-term behavior of Utilities and Treasuries to determine whether to be risk-on in equities, or risk-off in Treasuries. When risk-on, ATACX can rotate across large-caps, small-caps, and emerging markets. When risk-off, ATACX can rotate across long duration Treasuries and short duration Treasuries.
The ATAC US Rotation ETF (RORO) is an exchange traded fund that uses a different risk-on, risk-off approach by tracking the short-term behavior of Lumber relative to Gold. When risk-on, RORO can rotate into a combination of small-caps and large-cap growth ETFs. When risk-off, RORO rotates into long duration Treasuries.
Both the timing of the indicators, and the opportunity sets, are different between ATACX and RORO which can result in very different week to week results, all while seeking to achieve the longer term objective of being tactical risk rotation strategies.
JOJO is a bond fund ETF that fits in the fixed income portion of an asset allocation.
CONSTRUCTION
In offensive mode, RORO can invest in a combination of small-cap and large-cap growth ETFs. In defensive mode, RORO can invest in long duration Treasuries.
We manage risks by using diversified ETFs and employing strategies that seek to decrease the beta in our portfolios ahead of periods of market stress. It is important to note that while the ETF can get defensive ahead of high volatility periods, this does not mean that volatility in the Fund will not be higher at times than the stock market’s. Rather, fund volatility characteristics tend to be different than a simple buy and hold passive index.
In our research, using bonds as the lower beta option is superior to cash and short positions over a full market cycle. RORO is built to perform during a full market cycle which includes bull and bear market environments. Using cash and short positions can lead to significant underperformance during false positives.
Yes. The ETF may have up to 133% exposure when in offensive mode.
The ETF is intended to be an active risk management vehicle. As such, it is expected to have a high portfolio turnover which could exceed 1,000% on an annual basis, depending on market conditions.
Contact us at ATAC Funds.
EXPENSES & TERMS
The ATAC US Rotation ETF is an exchange traded fund, with the ticker of RORO.
Gross expense ratio: 1.40%. Net expense ratio: 1.13%. The Fund’s investment adviser has contractually agreed to reduce its unitary management fee to 0.98% of the Fund’s average daily net assets through at least December 31, 2021. This agreement may be terminated only by, or with the consent of, the Fund’s Board of Trustees, on behalf of the Fund, upon sixty (60) days’ written notice to the Adviser.
You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in this explanation.
RORO is an ETF available on most online discount brokers (Schwab, TD, Fidelity, Etrade, interactive brokers, etc) and other broker/dealer platforms.
There is no minimum investment for RORO.
For RORO, investors will receive a tax statement from the brokerage platform selected to hold the shares. Fund distributions are generally taxable as ordinary income, qualified dividend income, or capital gains (or a combination), unless your investment is in an individual retirement account (“IRA”) or other tax-advantaged account. Distributions on investments made through tax-deferred arrangements may be taxed later upon withdrawal of assets from those accounts.
The ETF pays dividends annually in December based on accumulated dividends throughout the year from holdings. There may also be a capital gains distribution based on trading gains and losses.
OBJECTIVES & POSITIONING
RORO seeks to achieve absolute returns over time.
Our goal is to educate our investors so that they can choose the offering or offerings that best suit their investment objectives. RORO fits into the alternative or tactical allocation bucket. It tends to act as a non-correlated alternative and can add significant diversification benefits over the course of a full market cycle.
If there were an investment strategy that worked all of the time, everyone would follow it and it would stop working. The ETF is designed specifically to take advantage of the anomaly that you can position ahead of stock market volatility. Anomalies themselves have cycles, which can be either favorable or unfavorable for the types of risk rotations employed in the ETF. There will be months, quarters, or even longer that our strategies will underperform one benchmark or another, but this is true of any strategy that is successful over time. Furthermore, the potential to be defensive ahead of higher volatility regimes in equities makes the magnitude of potential outperformance during such periods significantly greater than might otherwise be obvious when looking at past performance in a lower volatility cycle.
We are dedicated to following a disciplined process with the core belief that over the course of a full market cycle, adhering to our process will reward our investors. Our broad philosophy is that true long-term outperformance does not come from being up more, but rather down less.
Both Funds, while highly tactical, use different opportunity sets, and different indicators for their rotations. The two fit within the satellite and alternative portions of a portfolio, and can both be used as diversifiers focused on the same objectives, but getting there in different ways.
JOJO is a highly tactical bond ETF which fits into the fixed income portion of a portfolio.
Disclosures
Diversification does not assure a profit nor protect against a loss in a declining market.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
While the fund is no-load, management and other expenses still apply.
The Fund is only offered to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
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