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DALLAS, TX, April 22, 2021 (GLOBE NEWSWIRE) — Acruence Capital, LLC, a Registered Investment Advisory firm that provides investment services to individual and institutional clients seeking to achieve high risk-adjusted returns using data science, today announced the launch of the Acruence Active Hedge U.S. Equity ETF (ticker: XVOL). The new fund seeks capital appreciation with reduced volatility as compared to the S&P 500 Index. With this ETF, Acruence is delivering more broadly its institutional quality, research-driven hedging and investing strategy in a cost-effective and diversified manner. The firm is known for applying data science techniques to evaluate and optimize investment strategies. Dr. John Elder, a Partner at Acruence, is the Founder of Elder Research, one of the world’s most reputable data science companies.
Acruence aims to achieve XVOL’s objectives by investing nearly all of the ETF’s assets in a portfolio replicating the constituents and weights of the S&P 500 Index, while working to reduce volatility by purchasing options contracts on the CBOE Volatility Index, also known as the VIX. Historically, the VIX Index has shown a strong inverse relationship with the S&P 500 Index. The firm uses a proprietary, volatility-based algorithm to determine the number of VIX options contracts to purchase, as well as the strike price(s) and expiration date(s) of the options.
Acruence partnered with the team at Tidal ETF Services to bring XVOL to market.
ABOUT ACRUENCE CAPITAL
Acruence Capital, LLC (“Acruence”) provides investment advisory services to individual and institutional clients. The firm manages client investment portfolios on a discretionary basis and provides outsourced CIO (OCIO) services to other registered investment advisory companies. The firm’s investment management activities use the Acruence risk-based investment modeling service. The primary objective of the model is to achieve high risk-adjusted returns while limiting volatility and downside risk.
The firm crafts investment strategies in a variety of areas: long and short positions in indices and ETFs to mirror diversified portfolios; options and futures strategies to achieve varied return profiles; and seeking to maximize return and reduce volatility using data science and machine learning. Acruence also applies data science techniques to evaluate and optimize 3rd-party investment strategies. For more information, visit https://www.acruence.com/
ABOUT TIDAL ETF SERVICES
Formed by ETF industry pioneers and thought leaders, Tidal sets out to disrupt the way ETFs have historically been developed, launched, marketed and sold. With a transparent, partnership approach, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. As advocates for ETF innovation, Tidal helps institutions and organizations launch the most interesting and viable ETFs available today. For more information, visit tidaletfservices.com.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Investments involve risk including the possible loss of principal.
The Fund may actively and frequently trade all or a significant portion of the securities in its portfolio which may increase the Fund’s expenses and also cause adverse tax consequences. The Fund is actively-managed and may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund. The fund is classified as non-diversified. Because it is non-diversified, it may hold large positions in a small number of securities. To the extent it maintains such positions; a price change in any one of those securities may have a greater impact on the fund’s share price than if it were diversified. The Fund is a recently organized management investment company with no operating history.
Options can be volatile and have a large impact on the performance of the Fund. There is a risk of loss of all or part of the cash paid (premium) for purchasing options and the value of the option may be lost if not exercised at or prior to expiration. One of the primary drivers of the value of a VIX Option is movement in the spot value of the VIX Index, which is a measure of implied volatility of S&P 500 options. Therefore, changing market expectations of future volatility will lead to changes in the market value of VIX Options. Because implied volatilities often rise during periods of market stress, the VIX Index is often negatively correlated to equity markets.
The S&P 500® Index is composed of 500 selected common stocks most of which are listed on the New York Stock Exchange. It is not an investment product available for purchase. The Chicago Board Options Exchange (“CBOE”) Volatility Index (The “VIX” Index) estimates the expected level of volatility in the U.S. stock market, as reflected by the S&P 500, forward-looking over 30 days. It is not possible to invest directly in an Index.
Gross expense ratio: 0.83%.
You should consider the fund’s investment objectives, risks, and charges and expenses carefully before you invest. The fund’s prospectus or summary prospectus, which can be obtained by calling 1.833.653.6400, contains this and other information about the fund, and should be read carefully before investing.
The fund is distributed by Foreside Fund Services, LLC.