Summit Global Investments Launches New ETF

Rhea-AI Summary

Summit Global Investments has launched the SGI Dynamic Tactical ETF (DYTA), a semi-transparent ETF now trading on Nasdaq. The ETF aims to help investors mitigate risks during market downturns by holding a portfolio of funds across various company sizes and using a tactical allocation strategy. Unlike traditional ETFs that disclose daily holdings, DYTA will publish a Proxy Portfolio, which may introduce additional trading risks. However, this structure allows for potential benefits, including improved performance by protecting the ETF's investment strategy. The fund seeks to provide daily liquidity, tax efficiency, and competitive expenses.

Positive

• Launch of SGI Dynamic Tactical ETF (DYTA) on Nasdaq.
• Investing strategy focuses on mitigating risks during market downturns.
• Semi-transparent structure may protect against competitive trading strategies.

Negative

• Increased trading costs due to reduced transparency of holdings.
• Potential for price discrepancies between market value and actual portfolio.

Introducing Nasdaq-Listed SGI Dynamic Tactical ETF (DYTA)

BOUNTIFUL, Utah, April 3, 2023 /PRNewswire/ -- Summit Global Investments (SGI) announced the launch of their new semi-transparent ETF, the SGI Dynamic Tactical ETF. Shares began trading last week on the Nasdaq under the ticker symbol DYTA.

"We couldn't be more excited for investors with the launch of this ETF," said Dave Harden, CEO, Summit Global Investments. "Investors have had a tough two years in the market. Our investing strategy for DYTA, as for all our products, focuses on mitigating risk. This portfolio will hold underlying funds across all size companies and allow us to make tactical decisions to shift among them. We believe this strategy may help investors navigate persistent market downturns."

This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example: You may have to pay more money to trade an ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because this ETF provides less information to traders. These additional risks may be even greater in bad or uncertain market conditions. The Fund will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF's holdings, it is not the ETF's actual portfolio. The differences between this ETF and other ETFs may also have advantages. By keeping certain information about an ETF portfolio secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict an ETF's investment strategy, however, this may hurt the ETF's performance. For additional information regarding the unique attributes and risks of this ETF, see the Prospectus.

DYTA is one of a breed of the newer semi-transparent exchange traded funds developed in 2019 as part of the evolution of the ETF space. A semi-transparent ETF provides investors the benefits of traditional mutual funds combined with those found in traditional ETFs but discloses it holdings quarterly rather than daily. This allows potential for greater alpha to be created by SGI's proprietary portfolio trading strategy. By not revealing daily trading decisions, we believe there is less potential for other traders to engage in practices that may potentially harm the ETF and its shareholders.

"We're excited to support Summit Global Investments with the launch of the SGI Dynamic Tactical ETF," said Giang Bui, Head of U.S. Exchange Traded Products at Nasdaq. "As a listing partner, we are committed to providing issuers with tailored ETF services, a trusted execution platform, and dedicated liquidity programs to amplify their brands."

SGI Dynamic Tactical ETF will be guided by the firm's Managed Risk Approach.™ The fund seeks to fully participate in rising equity markets, reducing risk when fundamental and quantitative signals identify weakness within various asset classes or sectors. As that occurs, SGI will tactically alternate allocations among the underlying funds to seek lower volatility than the S&P 500 Index.

Like all ETFs, DYTA offers daily liquidity, is tax-efficient and has competitive expenses. It is structured under Blue Tractor's Shielded Alpha® exchange traded fund (ETF) ETF wrapper, which facilitates active fund management while seeking to help hedge the portfolio manager's proprietary alpha strategy and trading execution. Shares may be purchased through online brokers and financial advisors.

DYTA is a part of the RBB series trust. The RBB Fund, Inc. and The RBB Fund Trust together are a turnkey ETF and mutual fund solution that permits an investment adviser to focus on its core competency of asset management and shifts most responsibility for the establishment, servicing, and corporate governance of funds to RBB.

"We are excited to help Summit Global Investments bring DYTA to investors," said Steven Plump, RBB's CEO & President. "As innovators and leaders, we work hard to stay ahead of trends in the marketplace. DYTA is one of the early adopters in the semi-transparent space and we are proud to be a part of it."

About Summit Global Investments

Headquartered in Bountiful, Utah, SGI adheres to a disciplined, managed-risk, multi-factor investment process designed to find attractive investment opportunities. The firm manages multiple investment strategies for its clients. Over a full market cycle, their defensive strategies have historically limited downside risks and allowed for participation in market rallies. SGI's mission is clear – to help investors win. They care about return and deeply care about the risk associated with such returns. Ever mindful of the impact on their clients' assets, the combination of risk, return and impact is at the center of their Managed Risk Approach. ™

SGI's investment process has evolved over decades of research and continuous revisions to understand and exploit what reduces risk, avoids pitfalls and elevated idiosyncratic risks, and drives market returns.

Blue Tractor's semi-transparent Shielded Alpha® structure facilitates active fund management within an ETF wrapper. Blue Tractor is not affiliated with Summit Global Investments.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (800)531-5142 or visit our website at sgiam.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. The Fund is a newly organized, diversified management investment company with no operating history. To the extent the Fund invests in Underlying Funds that invest in fixed income securities, the Fund will be subject to fixed income securities risks. While fixed income securities normally fluctuate less in price than stocks, there have been extended periods of increases in interest rates that have caused significant declines in fixed income securities prices. To the extent that a Fund invests in Underlying Funds that invest in high-yield securities and unrated securities of similar credit quality (commonly known as "junk bonds"), the Fund may be subject to greater levels of interest rate and credit risk than funds that do not invest in such securities. Small-cap companies that the Underlying Funds may invest in may be more volatile than, and not as readily marketable as, those of larger companies. Small companies may also have limited product lines, markets or financial resources and may be dependent on relatively small or inexperienced management groups. Underlying Funds that invest in foreign securities may be subject to special risks, including, but not limited to, currency exchange rate volatility, political, social or economic instability, less publicly available information, less stringent investor protections and differences in taxation, auditing and other financial practices. Investments in emerging market securities by Underlying Funds are subject to higher risks than those in developed countries because there is greater uncertainty in less established markets and economies. To the extent the Fund invests in Underlying Funds that focus their investments in a particular industry or sector, the Fund's shares may be more volatile and fluctuate more than shares of a fund investing in a broader range of securities.

Alpha: is typically used to represent the value added or subtracted by active investment management strategies. It shows how an actively managed investment portfolio performed compared with the expected portfolio returns produced simply by benchmark volatility (beta) and market changes.

S&P 500: An index of large company stocks considered to be representative of the U.S. stock market. S&P 500 Index performance does not reflect deductions for fees or expenses.

The SGI Dynamic Tactical ETF is distributed by Quasar Distributors, LLC

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SOURCE Summit Global Investments

FAQ

What is the SGI Dynamic Tactical ETF (DYTA)?

The SGI Dynamic Tactical ETF (DYTA) is a new semi-transparent ETF launched by Summit Global Investments, focusing on mitigating investment risks.

When did the SGI Dynamic Tactical ETF start trading?

The SGI Dynamic Tactical ETF (DYTA) began trading on Nasdaq on April 3, 2023.

How does the semi-transparent structure of DYTA benefit investors?

The semi-transparent structure may protect the ETF's investment strategy from being predicted or copied by other traders, potentially improving performance.

What risks are associated with investing in DYTA?

Investing in DYTA includes risks such as increased trading costs and potential discrepancies between market prices and the actual value of the ETF's portfolio.

What is the goal of the SGI Dynamic Tactical ETF's investing strategy?

The goal is to fully participate in rising equity markets while reducing risk when weakness is detected in asset classes or sectors.