MILWAUKEE & NEW YORK--(BUSINESS WIRE)--Tidal Financial Group (Tidal) in partnership with GammaRoad Capital Partners, LLC (GammaRoad) announces the launch of the exchange-traded fund, the GammaRoad Market Navigation ETF (NYSE: GMMA).
The fund is powered by the MarketVector™-GammaRoad U.S. Equity Strategy Index (MVGMMA), which launched in December 2023 and seeks to navigate market volatility by avoiding the worst drawdowns and capitalizing on the most favorable market environments. The innovative, rules-based strategy is designed to deliver comparable returns to the S&P 500 while providing downside risk mitigation and uncapped upside potential over the long term.
The strategy measures three equally weighted, key market influences to quantify how favorable the current environment is for taking U.S. equity risk: consumer confidence, economically sensitive asset relationships, and price direction. These risk measures power a dynamic, unbiased system that adapts to market changes by allocating between U.S. equities and U.S. Treasury Bills. When all three measures are bearish, the strategy holds only T-Bills; when all three are bullish, it holds its maximum equity exposure. If the signals are mixed, it holds a combination of equity exposure and T-Bills.
“As markets continue to experience bouts of market volatility, the launch of this product comes at the right time. Investors are increasingly seeking strategies that provide both downside protection and upside potential without the limitations of traditional hedging methods,” Gavin Filmore, Chief Revenue Officer at Tidal. “With the GammaRoad Market Navigation ETF, GammaRoad aims to deliver a solution that adapts dynamically to changing market conditions, offering a more balanced approach to navigating risk while still capitalizing on growth opportunities.”
GammaRoad, the ETF sponsor, is a research firm that develops systematic investment strategies with the goal of improving traditional portfolios. The firm is led by Jordan Rizzuto, CFA, Managing Partner, Chief Investment Officer, and strategy architect, and Matthew Landon, CFA, President and Chief Operating Officer. The duo brings complementary expertise and a deep history working on the institutional and wealth management side of the business respectively.
“Hedged equity and buffer strategies primarily use options to reduce downside risk, which can often limit upside potential,” said Rizzuto. “Our strategy offers a systematic process to gradually adjust equity exposure as the risk environment changes, and aims to significantly reduce downside risk without limiting upside returns.”
“Investors want the upside potential of buying and holding U.S. equities, yet face the possibility of painful drawdowns like we’ve seen in recent decades,” said Landon. “Our strategy is designed to play both offense and defense, and seeks to provide equity investors with a less turbulent ride over the long term.”
The GammaRoad Market Navigation ETF is supported by best-in-class service providers, including MarketVector Indexes as index provider, Tidal Financial Group LLC as the ETF issuer and Tidal Investments LLC as the fund’s investment adviser. For more information, please visit Market Navigation ETF.
About Tidal Financial Group, LLC
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit https://www.tidalfinancialgroup.com/.
About GammaRoad Capital Partners, LLC
GammaRoad Capital Partners, LLC is a research firm that develops systematic investment strategies with the goal of improving traditional portfolios. The firm’s objective and rules-based strategies aim to reduce drawdowns while capitalizing on the most favorable market environments. For more information, visit https://www.gammaroadcapital.com/.
About MarketVector Indexes
MarketVector Indexes™ (“MarketVector”) is a regulated Benchmark Administrator in Europe, incorporated in Germany and registered with the Federal Financial Supervisory Authority (BaFin). MarketVector maintains indexes under the MarketVectorTM, MVIS®, and BlueStar® names. With a mission to accelerate index innovation globally, MarketVector is best known for its broad suite of Thematic indexes, a long-running expertise in Hard Asset-linked Equity indexes, and its pioneering Digital Asset index family. MarketVector is proud to be in partnership with more than 25 Exchange-Traded Product (ETP) issuers and index fund managers in markets throughout the world, with more than USD 50 billion in assets under management. For more information, visit www.marketvector.com
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 (844) 954-4499. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.
Underlying ETF-Specific Risks. The Fund attempts to invest all, or substantially all, of its assets in one or more of the following ETFs (or comparable ETFs): SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL), the SPDR® S&P 500 ETF Trust (SPY), and the ProShares Ultra S&P500® ETF (SSO). As a result, when the Fund invests in such ETF(s), it is indirectly subject to the principal risks of investing such ETF(s).
BIL Principal Risks: The principal risks of investing in the SPDR® Bloomberg 1-3 Month T-Bill ETF include General Market Risk, Debt Securities Risk (including income risk), U.S. Government and U.S. Agency Obligations Risk, Index Strategy Risk, Passive Investment Risk, Tracking Error Risk, and ETF Risks.
SPY Principal Risks: The principal risks of investing in the SPDR® S&P 500 ETF Trust include Index Strategy Risk, Passive Investment Risk, Tracking Error Risk, Equity Market Risk, General Market Risk, and ETF Risks. In addition, as of the date of this Prospectus, SPY is subject to Information Technology Industry Risk.
SSO Principal Risks: The principal risks of investing in the ProShares Ultra S&P500® ETF include Leverage Risk (leverage amplifies losses during S&P Index downturns, potentially leading to total investment loss), Holding Period Risk (performance over periods longer than a day may significantly differ from the targeted leveraged (2X) return that the ETF seeks on a daily basis (“Daily Target”)).
Underlying ETF Risks. The Fund will incur higher and duplicative expenses because it invests in underlying ETFs. There is also the risk that the Fund may suffer losses due to the investment practices of the Underlying ETFs. The Fund will be subject to substantially the same risks as those associated with the direct ownership of securities held by the underlying ETFs.
Leveraged ETFs. Investing in leveraged underlying ETFs will amplify the Fund’s gains and losses. Most leveraged ETFs “reset” daily. Due to the effect of compounding, their performance over longer periods of time can differ significantly from the performance of their underlying index or benchmark during the same period of time.
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.
Tracking Error Risk. While the Fund generally seeks to track the performance, before fees and expenses, of the Index, the performance of the Fund and its Index may differ from each other for a variety of reasons.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Distributed by Foreside Fund Services, LLC.
