The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) increased by 4.96% in August 2026, compared to 2.72% for the S&P 500 Index. LBAY paid our sixty-ninth consecutive monthly distribution, at $0.085 per share in August. This is a 2.62% SEC yield versus the S&P 500 Index dividend yield of approximately 1.04%. Year-to-date, the net asset value of LBAY has increased by 16.59%, compared to an increase of 13.14% for the S&P 500. The Fund’s correlation to the S&P 500 is -0.17 as of 8/31/2026.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (833) 417-0090. The gross expense ratio for the fund is 1.27%.
View LBAY standardized performance here.
The Fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the Fund was traded.
*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. The 30-day SEC yield is calculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and does not reflect waivers in effect. The 30-day SEC yield is calculated from the 30 days ending on the last day of the previous month. This figure reflects income less expenses and approximates the yield an investor would receive in a 12-month period if a fund continues earning the same rate for the rest of the year. View the 30-day SEC yield here. The US Treasury yield reflects the interest rate the US government could expect to pay to borrow money for different periods of time.
YIELDS RISE, METALS AND MINERS RALLY
Geopolitics and AI financing remained in focus, but long duration bond yields stole investors’ attention in August. The 30-year Treasury yield rose to 5.32% during the month, its highest level in 19 years1 which led Treasury Secretary Scott Bessent to announce the U.S. Treasury would double the size of its bond repurchases, totaling approximately $4 billion.
“Governments defending prices against fundamentals always lose. The only variable is how much they spend before conceding. The U.S. shouldn’t put itself on the wrong side of that trade, not with the most important price in the world, and not when that price is trying to say the one thing Washington most needs to hear: Let the bond market speak.” —Stanley Druckenmiller, “Let the Bond Market Speak,” The Wall Street Journal, August 25, 20262
The news initially pushed 30-year yields lower before markets shrugged it off, and long-dated yields rebounded. The prices of metals, including gold, copper and silver rose as investors interpreted Bessent’s move as another sign of loose policy and an inflationary threat. The NYSE Arca Gold Miners Index climbed 33% in August. Semiconductor industry names saw choppy trading through much of the month but received a brief lift after Nvidia delivered a strong earnings report. Momentum stocks were broadly subdued for a second straight month with the MSCI USA Momentum Index finishing flat in August.
The August metals rally benefited our miner positions, including Hecla Mining (HL), Barrick Mining (B), Newmont (NEM) and Alamos Gold (AGI), which significantly contributed to LBAY’s performance for the month. We noted in last month’s July Portfolio Review that we thought the miners offered the most opportunity after their brief pull-back, and we selectively added to our positions at that time. Long positions in the energy, healthcare, and financials sectors also contributed. Top contributing individual short positions included AppLovin (APP), Dycom Industries (DY), Western Digital (WDC), and Chipotle Mexican Grill (CMG). Shorts in Palantir Technologies (PLTR) and Carvana (CVNA) detracted.
We are optimistic about the investment opportunities that we are finding, but we are cautious of the excesses we see in markets, and we are managing risk accordingly. While the popular narrative says the economy is healthy, we are very cognizant that a significant portion of GDP has been driven by AI investment and asset price appreciation. We are closely watching AI financing as the supporting demand relies heavily on just a few players and the outcomes of upcoming IPOs. History has also shown us to expect volatility heading into the midterm elections.
TOP CONTRIBUTOR
Becton, Dickinson and Company (BDX). Following its spin-off and Reverse Morris Trust transaction with Waters Corporation in February 2026, BDX is now a pure-play medical technology company spanning vascular access and blood collection devices, patient monitoring, drug delivery systems, and interventional solutions. The stock rallied 13.6% in August and traded near a 12-month high as investor sentiment was lifted by a strong quarterly earnings report which beat expectations for earnings per share and revenue. Our thesis that the new BDX is a more focused MedTech company has shown strong early momentum. We remain long BDX, but we did trim the position as it re-rated significantly higher in August.
TOP DETRACTOR
Honeywell Aerospace (HONA). The recently spun-off stock faced significant selling pressure during the month after a disappointing earnings report. The company missed consensus expectations on earnings per share and lowered its full-year guidance, citing supply chain constraints and slower-than-expected production ramp-up. While we were surprised by the earnings report, we note that its order backlog showed that demand is strong, and the stock trades at a discount relative to other aerospace names. We maintain our long position and added modestly on weakness.
NOTABLE BUY
Franklin Templeton (BEN). We initiated a position in this asset manager as the firm’s strategic improvement initiatives have become evident in its operating performance. Franklin Templeton’s most recent quarterly results3 showed margin expansion and positive long-term flows across all asset classes and regions. The company completed $348 million in share repurchases during the quarter, and its stock carries a 3.9% dividend yield. As industry peers have struggled with asset outflows and fee compression, we are optimistic that Franklin has found its footing, and the business appears to be poised for continued success.
NOTABLE SELL
Phillips 66 (PSX). We decided to take profits and exit Phillips 66 at a healthy gain. The position has contributed significantly to the portfolio’s performance this year, and we felt our thesis has largely played out. Considering the stock’s recent price appreciation and stabilizing oil prices, we believe further upside is limited.
SHORT BOOK ACTIVITY
We covered our short exposure to cryptocurrency-related businesses prior to August’s Bitcoin rally, closing short positions in Strategy (MSTR), Robinhood Markets (HOOD), and Bitmine Immersion Technologies (BMNR). We also covered short positions in United Airlines (UAL) and Dycom Industries (DY). We initiated new shorts in Valero Energy (VLO) and various consumer-related names discussed below.
POSITIONING THEMES
The current investing backdrop leads us to prefer tangible businesses and hard assets. Key portfolio exposures falling into this category include our materials and mining industry holdings and our position in Vail Resorts (MTN), which we have previously discussed. As one of the larger publicly traded water utilities in the U.S., Essential Utilities (WTRG) is another top holding with these characteristics. The company is in the process of being acquired in an all-stock deal by American Water Works (AWK), the largest water utility in the U.S. The deal is expected to close in early 2027. In the meantime, Essential Utilities stock carries a 3.5% dividend yield and trades at a slight discount to the deal price. We expect to maintain a long position in AWK after the deal closes.
We have concerns about consumer strength heading into the holiday season. It is commonly known that lower-income consumers have felt persistent pressures due to inflation and higher fuel prices. We think spending by higher-income households has been supported by the perceived wealth effect from elevated asset prices, and periods of market volatility could weigh on confidence among these segments. During August, we reduced our consumer exposure by selling Home Depot (HD) and initiating short positions in SharkNinja (SN) and CAVA Group (CAVA). We also continue to maintain a short position in Life Time Group (LTH).
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 Source: Bloomberg, unless otherwise noted.
**Definitions: A basis point is one hundredth of one percent. One basis point is 0.01%. Earnings per Share Estimate is a company’s expected future annual earnings per share, as estimated by professional analysts. Trailing Price to Earnings (P/E) is the ratio for valuing a company that measures current share price divided by its earnings per share over the last 12 months. Forward Price to Earnings Multiple (P/E) is the ratio for valuing a company that measures current share price divided by its forecasted earnings per share. The cyclically adjusted price to earnings (CAPE) is a ratio that divides a company's or index's current market price by the average inflation-adjusted earnings per share of the last 10 years. Price to Book (P/B) is the ratio for valuing a company that measures current share price divided by book value per share. Book value is a company’s total assets minus liabilities. Price to Sales is the ratio for valuing a company that measures current share price to revenue, indicating how much investors are willing to pay for each dollar of sales. The Q ratio is a financial metric that compares a company's market value to the replacement cost of its assets. The market cap-to-GDP ratio, also known as the "Buffett Indicator," measures a country's total stock market capitalization relative to its Gross Domestic Product (GDP). It's calculated by dividing the total market value of all publicly traded companies by the country's annual GDP. Enterprise Value (EV) is a measure of a company’s total value, and includes market capitalization, cash, and debt. EBITDA is a company’s earnings before interest, taxes, depreciation, and amortization. EV/EBITA may be used as a measure of the value of a company and its operating performance. EV/Sales multiple is the Enterprise Value to trailing 12-month sales ratio. Price to Sales (P/S) ratio is the company's stock price to its revenue, and can offer an indication of how much investors are willing to pay for each dollar of sales.
Correlation measures the relationship between how the security moves in relation to the market index.
1 Source https://www.reuters.com/business/us-30-year-yields-hit-highest-level-since-2007-war-oil-worries-fester-2026-08-18/
2 Source https://www.wsj.com/opinion/let-the-bond-market-speak-81529d74
3 Source https://s201.q4cdn.com/562074409/files/doc_financials/2026/q3/Investor-Presentation-Q3-26-Final.pdf
Investing involves risk, including loss of principal.
Before investing you should carefully consider the fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from 833-417-0090. Please read the prospectus carefully before you invest.
“Long” and “short” are investment terms used to describe ownership of securities. To buy
securities is to “go long.” The opposite of going long is “selling short.” Short selling is an advanced trading strategy that involves selling a borrowed security. Short sellers make a profit if the price of the security goes down and they are able to buy the security at a lower
amount than the price at which they sold the security short. Since the Funds are actively managed, they do not seek to replicate the performance of a specified index. The Funds therefore may have higher portfolio turnover and trading costs than index-based funds.
As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund's net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. The Fund uses short sales and derivatives (options), both of which may involve substantial risk. The loss on a short sale is in principle unlimited since there is no upward limit on the price of a shorted asset. The potential loss from a derivative may be greater than the amount invested due to counter-party default; illiquidity; or other factors. Through its investments in real estate investment trusts (REITs), the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters. The fund is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. Asa result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
The Fund's exposure to master limited partnerships (MLPs) may subject the Fund to greater volatility than investments in traditional securities. The value of MLPs and MLP based exchange traded funds and notes may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments. Business development companies (BDCs) generally invest in debt securities that are not rated by a credit rating agency and are considered below investment grade quality (“junk bonds”). Little public information generally exists for the type of companies in which a BDC may invest and, therefore, there is a risk that the Fund may not be able to make a fully informed evaluation of the BDC and its portfolio of investments.
Foreside Fund Services, LLC, Distributor
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by clicking here. Please read the prospectus carefully before you invest.
“Long” and “short” are investment terms used to describe ownership of securities. To buy securities is to “go long.” The opposite of going long is “selling short.” Short selling is an advanced trading strategy that involves selling a borrowed security. Short sellers make a profit if the price of the security goes down and they are able to buy the security at a lower amount than the price at which they sold the security short.
Since the Funds are actively managed they do not seek to replicate the performance of a specified index. The Funds therefore may have higher portfolio turnover and trading costs than index-based funds.
LBAY Risks: Investing involves risk, including the loss of principal. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The Fund uses short sales and derivatives (options), both of which may involve substantial risk. The loss on a short sale is in principle unlimited since there is no upward limit on the price of a shorted asset. The potential loss from a derivative may be greater than the amount invested due to counter-party default; illiquidity; or other factors. The Fund may hold illiquid assets which may cause a loss if the Fund is unable to sell an asset at a beneficial time or price.
Through its investments in REITs, the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters.
The Fund’s exposure to MLPs may subject the Fund to greater volatility than investments in traditional securities. The value of MLPs and MLP based exchange traded funds and notes may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments.
BDCs generally invest in debt securities that are not rated by a credit rating agency and are considered below investment grade quality (“junk bonds”). Little public information generally exists for the type of companies in which a BDC may invest and, therefore, there is a risk that the Fund may not be able to make a fully informed evaluation of the BDC and its portfolio of investments.
The Fund is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
Foreside Fund Services, LLC, Distributor
Tidal ETF Services, Launch and Structure Partner
Leatherback Asset Management, Foreside Fund Services, and Tidal ETF Services are not affiliated.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by clicking here. Please read the prospectus carefully before you invest.
“Long” and “short” are investment terms used to describe ownership of securities. To buy securities is to “go long.” The opposite of going long is “selling short.” Short selling is an advanced trading strategy that involves selling a borrowed security. Short sellers make a profit if the price of the security goes down and they are able to buy the security at a lower amount than the price at which they sold the security short.
Since the Funds are actively managed they do not seek to replicate the performance of a specified index. The Funds therefore may have higher portfolio turnover and trading costs than index-based funds.
LBAY Risks: Investing involves risk, including the loss of principal. As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The Fund uses short sales and derivatives (options), both of which may involve substantial risk. The loss on a short sale is in principle unlimited since there is no upward limit on the price of a shorted asset. The potential loss from a derivative may be greater than the amount invested due to counter-party default; illiquidity; or other factors. The Fund may hold illiquid assets which may cause a loss if the Fund is unable to sell an asset at a beneficial time or price.
Through its investments in real estate investment trusts (REITs), the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems and natural disasters.
The Fund’s exposure to master limited parterships (MLPs) may subject the Fund to greater volatility than investments in traditional securities. The value of MLPs and MLP based exchange traded funds and notes may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political and regulatory developments.
Business Development Companies (BDCs) generally invest in debt securities that are not rated by a credit rating agency and are considered below investment grade quality (“junk bonds”). Little public information generally exists for the type of companies in which a BDC may invest and, therefore, there is a risk that the Fund may not be able to make a fully informed evaluation of the BDC and its portfolio of investments.
The Fund is classified as “non-diversified” and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
Foreside Fund Services, LLC, Distributor
Tidal ETF Services, Launch and Structure Partner
