The Leatherback Long/Short Alternative Yield ETF (LBAY) (the “Fund”) net asset value (NAV) increased by 6.03% in July 2026, compared to a decline of -0.06% for the S&P 500 Index. LBAY paid our sixty-eighth consecutive monthly distribution, at $0.085 per share in July. This is a 2.77% SEC yield versus the S&P 500 Index dividend yield of approximately 1.07%. Year-to-date, the net asset value of LBAY has increased by 11.08%, compared to an increase of 10.14% for the S&P 500. The Fund’s correlation to the S&P 500 is -0.15 as of 7/31/2026.
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.
MARKET CURRENTS SHIFTED BEHEATH A SMOOTH SURFACE
July’s headline index performance appeared benign and uneventful on the surface. The S&P 500 ended July nearly unchanged and the NASDAQ declined roughly 3%. Beneath the headlines, momentum securities sold off sharply, as evidenced by the MSCI USA Momentum Index declining 13% in July1. Additionally, AI-related names whipsawed hedge fund strategies and even forced AI-focused hedge fund Situational Awareness to seek a rescue from Citadel. Dispersion widened sharply across sectors and market capitalizations as investors rotated out of expensive technology exposure and into more value-oriented and defensive corners of the market.
Several forces were at work, including renewed conflict in the Middle East and uncertainty ahead of the Fed’s interest rate decision. In our opinion, the more consequential development was growing investor scrutiny of mega-cap technology companies’ accelerating capex plans as demonstrated by the breakdown in correlation within the Magnificent Seven itself. We have repeatedly expressed our concerns about escalating AI-related capex and weakening free cash flows.
LBAY was well-positioned for July’s shifting dynamics. We were pleased with the portfolio’s breadth of winners and its relatively short list of detractors. Both books contributed meaningfully: our longs gained more than 4%, while our shorts added more than 2%. Long exposure in Energy, Staples, Financials, and Health Care led the way, while CoreWeave, AppLovin, Tesla, Rigetti Computing, and Credo Technology Group were the top individual short contributors.
TOP INDIVIDUAL CONTRIBUTORS FOR JULY 2026
Phillips 66 (PSX). The energy sector caught a bid as renewed conflict in the Middle East pushed oil prices higher, with refining margins drawing additional investor interest. PSX capped a strong month by announcing a $10 billion increase to its share repurchase authorization2, which is a testament to the shareholder-return discipline that first drew us to the name.
Exxon Mobil (XOM). Shares rallied in July on the same tailwind: higher oil prices tied to renewed Middle East conflict and elevated refining margins.
Lamb Weston Holdings (LW). This food processing company is one of the world’s largest producers of frozen potato products. Its shares surged in July after reporting strong results as earnings per share and revenue beat expectations. Demand held steady and margins improved on easing cost pressures.
Intercontinental Exchange (ICE). Shares of the global exchange operator, including the NYSE, rallied heading into the company’s quarterly earnings report. Results beat expectations for multiple metrics, and the company announced plans to acquire bond trading platform, MarketAxess.
Vail Resorts (MTN). The company’s share price rose in July on improved investor sentiment. Rumors circulated of a potential proxy fight brewing, led by an activist investor, to reshape the board of directors and consider property sales. In the final days of July, the company announced a former MGM Resorts executive was appointed to its board of directors. We previously discussed our Vail Resorts position in our June Insights, Inside LBAY: Past to Present.
TOP DETRACTORS FOR JULY 2026
Modest detraction was attributable to positions in miners, including Alamos Gold (AGI) and Hecla Mining (HL). This was primarily due to range-bound gold prices during the month. We took the opportunity to selectively increase our long exposure to gold and silver miners on weakness.
NOTABLE TRADES EXECUTED FOR JULY 2026
Buys (Long):
Comcast (CMCSA). We initiated a new position in the global media giant, which announced plans to split into two separate companies. One company will be a pure media and entertainment business, while the other will be a technology and services provider. We believe the transaction can unlock value with each business better positioned to pursue a focused strategic plan, which could lead to stock re-ratings. Additionally, Comcast carries a healthy dividend yield of approximately 5%.
We opportunistically added to our gold and silver miner positions during the month. Elsewhere in the long book, we added to Essential Utilities (WTRG), Lamb Weston Holdings (LW), and SLM Corp (SLM).
Sells (Short):
Vertiv (VRT). We initiated a timely short position in the data center infrastructure and services company as we did not believe its valuation was sustainable. The stock sold-off late in July as investors broadly rotated out of momentum AI stocks, and Vertiv missed revenue expectations in its quarterly results.
We maintained our short positions in Rigetti Computing (RGTI), CoreWeave (CRWV), Applovin (APP), and Tesla (TSLA).
POSITIONING NOTES AS OF 7/31/2026
We expect volatility to persist for the remainder of the year as investors reassess risk heading into the midterm election. As we have previously discussed, we think momentum-driven valuations have become stretched beyond sustainable levels. Even the largest, higher-quality AI-related names have shown strain from aggressive capex plans as their free cash flow has significantly declined. Additionally, we think geopolitical tensions and high debt-to-GDP levels provide an attractive backdrop for precious metals. Looking forward, we believe the miners offer the most opportunity.
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.msci.com/indexes/index/703025/msci-usa-momentum-index
2 Source: https://investor.phillips66.com/financial-information/news-releases/news-release-details/2026/Phillips-66-announces-additional-share-repurchase-authorization/default.aspx
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
