FAQ

About Partners FAQ Process

HTUS EXPLAINED: FREQUENTLY ASKED QUESTIONS


    addWhat is HTUS?
    Hull Tactical US ETF (HTUS) is an actively managed ETF designed to provide dynamic exposure to the S&P 500. The Fund seeks long-term capital appreciation by adjusting market exposure based on a systematic model that evaluates more than 30 market indicators.
  • addHow does HTUS work?
    HTUS uses a quantitative model to determine its target S&P 500 exposure. The model evaluates indicators related to market trends, macroeconomic conditions, sentiment, technical signals, volatility, and options markets. Based on the model's signal, HTUS may increase or reduce equity exposure and may hold S&P 500-related ETFs, futures, options, VIX futures, or short-term Treasury and cash-like instruments.
  • addWhat makes HTUS different from other tactical ETFs?
    HTUS is different from many tactical ETFs because it focuses on dynamic S&P 500 exposure through a systematic, multi-indicator model. The Fund is not based on a fixed allocation, a single hedge, or a simple trend-following rule.
  • addHow does HTUS compare to SPY or a buy and hold strategy?
    SPY and a buy-and-hold S&P 500 strategy are designed to maintain broad, fully invested exposure to the S&P 500 through both rising and falling markets. HTUS is different because it uses a tactical quantitative model to adjust its S&P 500 exposure as market conditions change. This flexibility may help reduce participation in some market declines and increase participation during market climbs, but it may also cause HTUS to underperform during periods when full equity exposure performs best.
  • addHow would HTUS complement an existing portfolio?
    HTUS is a core equity replacement. It can be utilized to complement core equity exposure or for investors seeking additional income. Please reach out to learn more.
  • addWhat is HTUS' exposure and how often does it change?
    HTUS expects its S&P 500 exposure to range between approximately 70% and 130% about 80% of the time. The Fund updates its target exposure twice daily, near the open and close of regular market hours. Based on the model's signal, HTUS may increase exposure when conditions appear favorable or reduce exposure when conditions appear weaker. The Fund's maximum exposure is 200%, while its minimum equity exposure is 0%.
  • addIs HTUS suitable for tax-advantaged accounts?
    HTUS may be more suitable for tax-advantaged accounts because the Fund's active trading and portfolio turnover may create taxable distributions. Investors should consult a tax advisor about their own tax situation.
  • addWhat benchmark is used to evaluate the Fund's strategy?
    The Fund aims to outperform the S&P 500 over a full market cycle while targeting no more than 100% of the long-term volatility of the index.
  • addHow can portfolio turnover affect returns and taxes?
    Portfolio turnover can increase trading costs and may create taxable capital gains distributions. Investors should consult a tax advisor about their own tax situation.

HTUS EXPLAINED: FREQUENTLY ASKED TECHNICAL QUESTIONS


  • addWhat is tactical asset allocation?
    Tactical asset allocation is an investment approach that adjusts portfolio exposure as market conditions change. Instead of maintaining a fixed allocation, a tactical strategy may increase exposure when conditions appear favorable and reduce exposure when risks appear elevated. HTUS applies this approach primarily to S&P 500 exposure.
  • addWhat is a quantitative ETF?
    A quantitative ETF is an exchange-traded fund that uses systematic, rules-based, or model-driven methods to make portfolio decisions. HTUS can be described as a quantitative ETF because its S&P 500 exposure is guided by a systematic model updated twice a day.
  • addWhat is an actively managed ETF?
    An actively managed ETF is a fund whose portfolio is adjusted by the adviser rather than simply tracking an index. HTUS is actively managed because its target S&P 500 exposure is updated twice daily based on the Fund's quantitative model.
  • addWhat indicators does HTUS use?
    HTUS uses more than 30 indicators related to market trends, macroeconomic conditions, investor sentiment, technical signals, volatility, and options-market information. The model combines these inputs to estimate near-term S&P 500 market conditions and determine the Fund's target exposure.

Neither Hull Tactical Asset Allocation, LLC nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.


Diversification does not ensure a profit.

HTAA, LLC serves as the investment adviser. The Funds are distributed by Northern Lights Distributors, LLC (4221 North 203rd Street, Suite 100, Elkhorn, NE 68022) Check the background of Northern Lights Distributors, LLC on FINRA’s BrokerCheck.