The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) declined by 1.44% in September, compared to a decline of 4.77% for the S&P 500 Index. LBAY paid its thirty-fourth consecutive monthly distribution, at $0.075 per share in September. This is a 2.31% SEC yield versus the S&P 500 Index dividend yield of approximately 1.61%, and the 10-Year US Treasury yield of 4.572%. Year to date as of September 30, 2023, NAV for the Fund has declined 9.97%, compared to an advance of 13.07% for the S&P 500 Index. NAV performance for the Fund to date since inception (November 16, 2020) has produced a 40.74% cumulative total return and a 12.64% annualized total return.
In the end, life is simple. Low rates push up asset prices. Higher rates push asset prices down…We’re now in an era that will average higher rates than we had for the last 10 years.” – Jeremy Grantham
*Definitions: Duration measures a bond's or fixed income portfolio's price sensitivity to interest rate changes. Levered long refers to an investment strategy that uses borrowed funds to finance long positions to increase potential returns. Earnings per Share Estimate is a company’s expected future annual earnings per share, as estimated by professional analysts. Forward Price to Earnings Multiple is the ratio for valuing a company that measures current share price divided by its forecasted earnings per share.
1 The S&P 500 Index includes 500 leading companies and covers approximately 80% of the available market capitalization. The S&P 500 Dividend Yield is the estimated sum of all dividends paid by the index’s stocks in the last 12 months, divided by the index market capitalization as reported by the S&P. The dividend yield does not represent or predict the performance of the Fund. Indexes are unmanaged and it is not possible to invest in an index.
2 The 30-day SEC yield is calculated from the 30 days ending on the last day of the previous month. This figure approximates the yield an investor would receive in a year, assuming that each bond in the portfolio is held until maturity. View the 30 day SEC yield here.
3 Source: https://www.bloomberg.com/, October 19, 2023, courtesy @jessefelder
4 Source: https://www.wsj.com/, October 26, 2023
5 View LBAY top 10 holdings here. Holdings are subject to change. Characteristics and metrics of the companies shown are for the underlying securities in the fund’s portfolio and do not represent or predict the performance of the fund. There is no guarantee that a company will pay or continually increase its dividend. Section Sources: Bloomberg, https:// ir.oldrepublic.com/
Jeremy Grantham quote source: https://www.bloomberg.com/
Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.