An energy infrastructure portfolio with an options overlay
Bottom-up fundamental process utilizing over 30 years of investment experience to create a fundamental framework for security selection and portfolio construction.
Options designed to generate income while reducing volatility and beta*
Disciplined single-stock options strategy: 1-month call options averaging 4 to 5% out-of-the-money, sold on a monthly recurring basis
A well-researched fundamentally driven strategy
Seeks to provide clients with distributable income via options premium and dividends
Seeks to provide income paid out monthly
Seeks to deliver 10-20% less volatility and beta than the Alerian Midstream
Objective
The Westwood Salient Enhanced Midstream Income ETF is an actively-managed ETF that seeks to provide current income and capital appreciation by investing in securities of Midstream U.S. and Canadian corporations and U.S. master limited partnerships.
*30-day median bid/ask spread reflects the median of the difference between the best bid and offer as of the end of each 10-second interval during each trading day of the last 30 calendar days.
| Name | Security Identifier | Symbol | Net Assets % | Market Price | Shares Held | Market Value | Market Value % |
| ENERGY TRANSFER | 29273V100 | ET | 9.87% | 16.36 | 262,171 | 4,289,118 | 9.87% |
| WILLIAMS COS INC | 969457100 | WMB | 9.11% | 42.39 | 93,414 | 3,959,819 | 9.11% |
| ENTERPRISE PRODU | 293792107 | EPD | 8.41% | 28.99 | 126,005 | 3,652,885 | 8.41% |
| ENBRIDGE INC | 29250N105 | ENB | 7.70% | 35.27 | 94,834 | 3,344,795 | 7.70% |
| KINDER MORGAN IN | 49456B101 | KMI | 7.55% | 19.79 | 165,702 | 3,279,243 | 7.55% |
| PLAINS GP HOLD-A | 72651A207 | PAGP | 6.91% | 19.03 | 157,815 | 3,003,219 | 6.91% |
| CHENIERE ENERGY | 16411R208 | LNG | 5.06% | 173.08 | 12,701 | 2,198,289 | 5.06% |
| TARGA RESOURCES | 87612G101 | TRGP | 4.94% | 131.27 | 16,337 | 2,144,558 | 4.94% |
| HESS MIDSTREAM-A | 428103105 | HESM | 4.86% | 36.77 | 57,422 | 2,111,407 | 4.86% |
| TC ENERGY CORP | 87807B107 | TRP | 4.86% | 37.56 | 56,186 | 2,110,346 | 4.86% |
| Q2 2024 | Q3 2024 | |
| Days at premium | 42 | 43 |
| Days at zero premium/discount | 4 | |
| Days at discount | 12 |
The Premium/Discount of an ETF is defined as the amount the ETF is trading above/below the NAV of the underlying holdings.
Total Operating Expense 0.80%
NAV Return represents the closing price of underlying securities. Market Return is calculated using the price which investors buy and sell ETF shares in the market. The market returns in the table are based upon the midpoint of the bid/ask spread at 4:00 pm EST, and do not represent the returns you would have received if you traded shares at other times.
The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free (877) 386-3944.
Tracking error measures the divergence of returns between an investment and a benchmark. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security’s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security’s price will be more volatile than the market. Out of the money is also known as OTM, meaning an option has no intrinsic value, only extrinsic value. A call option is OTM if the underlying price is trading below the strike price of the call. A put option is OTM if the underlying’s price is above the put’s strike price. The SEC 30-Day Yield is a metric used to measure the income generated by a mutual fund or an exchange-traded fund (ETF) over a 30-day period. It is calculated by taking the net investment income earned by the fund over the past 30 days and annualizing it. The Unsubsidized SEC Yield represents what a fund’s 30-Day SEC Yield would have been had no fee waivers or expense reimbursement been in place over the period.
The type of investment you hold can have a big impact on your tax bill — and taxes can have an even bigger impact on t...
To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus which may be obtained by downloading at westwoodetfs.com or calling (800) 944-0755. Please read the prospectus carefully before investing.
The Fund is newly formed and has no operating history.
The Fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and energy infrastructure companies (including midstream MLPs and energy infrastructure companies) in which the Fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund’s profitability.
MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP were to be obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital or capital gain). Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLP funds. The tax benefits received by an investor investing in the Fund differs from that of a direct investment in an MLP by an investor. This document does not constitute an offering of any security, product, service or fund, including the Fund, for which an offer can be made only by the Fund’s prospectus. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description. “Alerian MLP Index,” “Alerian Midstream Energy Select Index,” “AMZ,” and “AMEI” are trademarks of Alerian and their use is granted under a license from Alerian. One cannot invest directly in an index.
Ted Gardner and Parag Sanghani have earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by CFA Institute. ÝEFINITIONS Ðaster limited partnerships (MLPs) are publicly traded limited partnerships and limited liability companies that are treated as partnerships for federal income tax purposes. Energy infrastructure companies are companies that own and operate assets that are used in the energy sector, including assets used in exploring, developing, producing, generating, transporting (including marine), transmitting, terminal operation, storing, gathering, processing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined products, coal or electricity, or that provide energy-related services. For purposes of this definition, such companies (i) derive at least 50% of their revenues or operating income from operating such assets or providing services for the operation of such assets or (ii) have such assets that represent the majority of their assets.
Westwood ETFs are distributed by Northern Lights Distributors, LLC. (Member FINRA) Northern Lights Distributors and Westwood ETFs (or Westwood Holdings Group, Inc.) are separate and unaffiliated.
To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 877.FUND.WHG (877.386.3944). Please read the prospectus carefully before investing.
Westwood ETFs are distributed by Northern Lights Distributors, LLC (Member FINRA). Northern Lights Distributors and Westwood ETFs (or Westwood Holdings Group, Inc.) are separate and unaffiliated.
