MKAM ETF, LLC Launches First ETF; Aiming to Be an Alternative to Legacy S&P 500 Index Funds With Reduced Downside Risk
May 04 2023 - 6:00AM
Business Wire
MKAM ETF, LLC announces the launch of its first ETF, MKAM ETF
(the “Fund”), an actively-managed ETF that seeks to achieve its
investment objective by investing in U.S. equity and/or fixed
income investments in order to capture the majority of equity
market returns, while exposing investors to less volatility and
downside risk than other equity investments. The Fund is listed on
NASDAQ under the ticker symbol MKAM.
“We understand stocks historically outperformed bonds, over a
sufficiently long-time horizon. But investors didn’t get the
long-term outperformance that came from owning stocks if their
emotions got them out of the market at an inopportune time or,
worse, they left and never came back,” said Stephen Mulholland,
CFA®, Co-Founder and Co-Portfolio Manager of the Fund. “We want to
smooth out the journey for investors, so they reach their desired
destination. Further, for any investor making regular withdrawals
of their portfolio, from retirees to endowments and foundations,
reducing portfolio drawdowns benefits future net asset values.”
MKAM ETF, LLC was founded by Mulholland, and Mark Kuperstock,
founders of San Diego and Summerlin, NV-based ‘Mulholland and
Kuperstock Asset Management’, as a separate entity to sub-advise
the Fund.
“We aren’t looking to be everything to everybody, but there is a
specific and demonstratable market need for MKAM ETF to address,”
said Kuperstock, Co-Founder and Co-Portfolio Manager of the Fund.
“We are looking to offer a more efficient alternative in the market
for a situation many investors face: The need to draw funds while
not sacrificing the totality of their investment gains. We know how
common this need is for institutional and retail investors alike,
and MKAM ETF looks to be the solution.”
MKAM ETF, LLC attempts to achieve the Fund’s investment
objective by following an asset allocation strategy that enables
MKAM ETF, LLC to periodically shift the assets of the Fund between
U.S. equity securities and Fixed-Income Investments. The Fund’s
allocation to these types of assets is determined by the MKAM ETF,
LLC’s proprietary algorithm (the “Algorithm”), which focuses on two
inputs: trend and valuation.
When the Algorithm’s signal suggest a rising market trend and
valuations are not considered excessive, the Fund’s portfolio will
maintain a higher allocation to U.S. equities. Whereas, when the
Algorithm results suggest a falling market trend and/or valuations
are considered high, the Fund’s portfolio will be positioned to
maintain a higher allocation to Fixed-Income Investments.
Management fee plus other expenses totals 0.96%.
About MKAM ETF, LLC
MKAM ETF, LLC, a SEC registered advisor, was founded in 2023 by
Stephen Mulholland and Mark Kuperstock, founders of San Diego and
Summerlin, NV-based advisory firm Mulholland and Kuperstock Asset
Management, to sub-advise the Fund. Mulholland and Kuperstock have
developed a proprietary algorithm that combines valuation and trend
that they have utilized to guide their asset allocation decisions
at Mulholland and Kuperstock Asset Management. MKAM ETF, LLC now
offers this algorithm directly to investors through MKAM ETF (The
Fund). For more information, please visit www.mkametf.com.
The Fund’s investment objectives, risks, charges and expenses
must be considered carefully before investing. This and other
important information is contained in the prospectus, which may be
obtained by following the links Prospectus and SAI or
by calling +1.215.882.9983. Please read the prospectus carefully
before investing.
Investments involve risk. Principal loss is possible.
The Fund is actively-managed and is subject to the risk that the
strategy may not produce the intended results. The Fund is new and
has a limited operating history to evaluate.
Equity Investing Risk. An investment in the Fund involves risks
similar to those of investing in any fund holding equity
securities, such as market fluctuations, changes in interest rates
and perceived trends in stock prices. The values of equity
securities could decline generally or could underperform other
investments. In addition, securities may decline in value due to
factors affecting a specific issuer, market or securities markets
generally. Foreign Investment Risk. Returns on investments in
foreign companies could be more volatile than, or trail the returns
on, investments in securities of U.S. companies. Investments in or
exposures to foreign markets are subject to special risks,
including risks associated with foreign securities generally. Those
special risks may arise due to differences in information available
about issuers of securities and investor protection standards
applicable in other jurisdictions; capital controls risks,
including the risk of a foreign jurisdiction imposing restrictions
on the ability to repatriate or transfer currency or other assets;
currency risks; political, diplomatic and economic risks;
regulatory risks; and foreign market and trading risks, including
the costs of trading and risks of settlement in foreign
jurisdictions. Fixed-Income Risk. The market value of fixed-income
securities will change in response to interest rate changes and
other factors, such as changes in the effective maturities and
credit ratings of fixed-income investments. During periods of
falling interest rates, the values of outstanding fixed-income
securities and related financial instruments generally rise.
Conversely, during periods of rising interest rates, the values of
such securities and related financial instruments generally
decline. Fixed-income investments are also subject to credit risk.
Leverage Risk. Use of derivative instruments may involve leverage.
Leverage is the risk associated with securities or investment
practices that multiply small index, market or asset-price
movements into larger changes in value. Leverage magnifies the
potential for gain and the risk of loss. As a result, a relatively
small decline in the value of the underlying investments could
result in a relatively large loss. The use of leverage will
increase the impact of gains and losses on the Fund’s returns, and
may lead to significant losses if investments are not
successful.
ETFs may trade at a premium or discount to their net asset
value. ETF shares may only be redeemed at NAV by authorized
participants in large creation units. There can be no guarantee
that an active trading market for shares will exist. The trading of
shares may incur brokerage.
This material has been distributed for informational purposes
only and should not be considered as investment advice or a
recommendation of any particular security, strategy or investment
product. We make no representation or warranty as to the accuracy
or completeness of the information contained herein including
third-party data sources. The views expressed are as of the
publication date and subject to change at any time. No part of this
material may be reproduced in any form, or referred to in any other
publication without express written permission. References to other
funds should not to be interpreted as an offer or recommendation of
these securities.
The Fund is distributed by Quasar Distributors, LLC. The fund’s
investment advisor is Empowered Funds, LLC, which is doing business
as EA Advisers.
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Rex Carlin (206) 240-5108 rcarlin@lyceusgroup.com
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