Arch Indices VOI Absolute Income ETF (VWI)

Key Facts

Optimized for Income
  • Uses the Arch Indices VOI weighting methodology seeking to maximize income while minimizing volatility
  • VOI takes into account the yield, volatility, and correlation to the portfolio to find the optimal portfolio
  • 7.0% VOIVWI Index Portfolio Yield
Multi-Asset Portfolio
  • Seeks to take advantage of correlation among stocks in a sector, sectors within the stock market, and stocks and bonds to minimize volatility
  • 79p of the holdings are quality dividend-paying stocks allowing for potential capital appreciation while generating income
Dynamically Rebalanced
  • Rebalances quarterly to reflect changing market conditions
Expertise
  • Our co-founders have a combined 40 years of capital markets experience inside major investment banks

Optimized Portfolio

  • Uses Arch Indices VOI weighting methodology seeking to maximize income while minimizing volatility
  • Dynamically rebalanced for changing market conditions
  • Monthly distribution
Fixed income

Bond ETFs may provide both income and low-to-negative correlation to an equities portfolio

  • AAA CLOs (floating rate exposure)
  • TIPS (real yield exposure)
  • Government/Securitized/Corporate exposure (duration/credit/convexity exposure)
Equities

Quality equities with a record of regular dividend payments may provide compelling yields today and potential for capital appreciation and dividend growth in the future

Summary

VWI is a passively managed income-focused ETF that tracks the Arch Indices VOI Core Absolute Income Index, an index typically comprised of 60 to 100 equity securities and up to 12 bond ETFs.

The ETF consists of dividend stocks and bond ETFs weighted with the goal of maximizing income while simultaneously minimizing volatility.

Arch Indices uses its proprietary Variance Optimized Indexing (VOI) methodology to weight each security by taking into account its Yield, Volatility, and Correlation to the portfolio.

Distributions

Yields

Yields as of Dec 22, 2023

30 day SEC Yield (subsidized)*
6.01%

Distribution Yield**
8.71%

Distribution Frequency
Monthly

* 30-Day SEC Yield: A standardized yield computed by dividing the net investment income per share earned during the past 30-day period by the share price at the end of the period, expressed as an annual percentage rate. Subsidized yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized yields do not reflect fee waivers in effect. The SEC yield does not include prepayment income, which could be a significant contribution to yield.

** Distribution Yield: The annual yield an investor would receive if the most recent fund distribution remained the same going forward. The yield represents a single distribution from the fund and does not represent total return of the fund. The distribution yield is calculated by annualizing the most recent distribution and dividing by the most recent fund NAV.


Distribution history

Distributions as of Mar 1, 2024

Closing price

Closing price as of Feb 28, 2024

CUSIP

00777X108

Market price

$26.26

Market price change

-$0.06 (-0.23%)

NAV

$26.24

NAV change

-$0.07 (-0.26%)

30-day Median Bid/Ask spread

0.27%

Shares outstanding

80000

Net assets

$2,099,278.29

Premium/Discount percentage

0.07%

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 646 389 2422. Performance for periods greater than one-year are annualized.

Holdings

Holdings as of Mar 1, 2024

Fund holdings and sector allocations are subject to change and should not be considered recommendations to buy or sell any security.

Historical prices

Performance

Performance as of Jan 31, 2024

Month-end3-Month totalYTD1-yrSince inception
VWI (Market price)-1.27%7.98%-1.27%N/A7.61%
VWI (NAV)-1.35%8.11%-1.35%N/A7.46%

The performance data quoted represents past performance. Past performance is not guarantee of future results. Investment return and principle value of an investment will fluctuate so that an investor's share may be worth more or less than their original cost. Current performance may be lower or higher. Arch Indices Investment Advisors LLC (the “Adviser”), the Fund’s investment adviser, has contractually agreed to waive 0.10% of its unitary management fee to reduce the unitary management fee to 0.50%. The fee waiver will remain in effect through at least October 31, 2024. Performance would have been lower without the fee waivers in effect.

The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company and a free hard-copy can be obtained by calling 646 389 2422. Please read it carefully before investing.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. Investing involves risk, including the possible loss of principal and fluctuation of value. There is no assurance the stated objective(s) will be met. Optimized weightings and diversification do not promise any level of performance or guarantee against loss of principal. The Fund's investment in debt securities typically decrease when interest rates rise. This risk is greater for longer-term securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund will invest in foreign securities which involve political, economic, and currency risk, difference in accounting methods and greater volatility. The Fund is not actively managed and invests in the securities included in, or representative of, its index regardless of their investment merit.

The Arch Indices VOI Absolute Income ETF is distributed by Quasar Distributors, LLC.

Disclosure

No Rendering of Advice

Arch Indices Investment Advisors LLC ("AIIA") is a Registered Investment Advisor registered with the U.S. Securities and Exchange Commission ("SEC"). AIIA provides asset management and related services for clients nationally. AIIA will file and maintain all applicable licenses as required by the state securities regulators and/or the SEC, as applicable. AIIA renders individualized responses to persons in a particular state only after complying with the applicable SEC and state regulatory requirements, or pursuant to any applicable exemptions or exclusions.

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