The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) advanced by 5.84% in May, compared to 0.18% for the S&P 500 Index. LBAY paid our eighteenth consecutive monthly distribution, at $0.065 per share in May. This is a 2.54% SEC yield versus the S&P 500 Index dividend yield of approximately 1.53%, and the 10-Year US Treasury yield of 2.847%. Year to date as of May 31, 2022, NAV for the Fund has returned 19.54%, compared to a decline of 12.76% for the S&P 500 Index. NAV performance for the Fund to date since inception (November 16, 2020) has produced a 52.69% cumulative total return and a 31.7% annualized total return.
For many years, the idea of don’t fight the Fed was if the Fed was going to be easy [on monetary policy.] You want to be long equities, but what changed dramatically this year is ‘don’t fight the Fed’ now means don’t fight the Fed when it’s fighting inflation. And that means that that’s not a good environment for equities on a short-term basis.” - Edward Yardeni
*Definitions: A basis point is one hundredth of one percent. One basis point is 0.01%. Enterprise Value (EV) is a measure of a company’s total value, and includes market capitalization, cash, and debt. EV/Sales multiple is the Enterprise Value to trailing 12-month sales ratio. 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.
3Source: https://fred.stlouisfed.org/, June 17, 2022
4View 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 Source: Bloomberg
5Edward Yardeni Quote Source: https://www.cnbc.com/, June 20, 2022
Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.