ATLANTA, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Nicholas Wealth today announced a 7.01% distribution yield, up from 6.56%, for the Nicholas Fixed Income Alternative ETF (FIAX). The dividend is payable on 12/19/2023 to shareholders of record at the close of trading day on 12/14/2023.
Distribution Information
| ETF Ticker1 | ETF Name | Distribution per Share | 30-day SEC Yield (as of 11/30/2023)2 | Distribution Rate3 | Ex-Date | Record Date | Payment Date | |||
| FIAX | Nicholas Fixed Income Alternative ETF | $0.1157 | 4.08% | 7.01% | 12/15/2023 | 12/18/2023 | 12/19/2023 | |||
Distribution History
| Distribution per Share | Distribution Yield | Ex-Date | Record Date | Payment Date | |
| $0.0190 | 1.54% | 1/17/2023 | 1/18/2023 | 1/19/2023 | |
| $0.0565 | 3.40% | 2/15/2023 | 2/16/2023 | 2/17/2023 | |
| $0.0464 | 2.79% | 3/15/2023 | 3/16/2023 | 3/17/2023 | |
| $0.0475 | 2.84% | 4/17/2023 | 4/18/2023 | 4/19/2023 | |
| $0.0693 | 4.15% | 5/15/2023 | 5/16/2023 | 5/17/2023 | |
| $0.0692 | 4.15% | 6/14/2023 | 6/15/2023 | 6/16/2023 | |
| $0.0910 | 5.41% | 7/17/2023 | 7/18/2023 | 7/19/2023 | |
| $0.1104 | 6.63% | 8/15/2023 | 8/16/2023 | 8/17/2023 | |
| $0.1076 | 6.46% | 9/14/2023 | 9/15/2023 | 9/18/2023 | |
| $0.1062 | 6.48% | 10/16/2023 | 10/17/2023 | 10/18/2023 | |
| $0.1077 | 6.56% | 11/15/2023 | 11/16/2023 | 11/17/2023 | |
1 Nicholas Fixed Income Alternative ETF has a gross expense ratio of 0.95%.
2 The 30-Day SEC Yield for FIAX is 4.08%. The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period ended November 30, 2023, expressed as an annual percentage rate based on such ETF’s share price at the end of the 30-Day period.
3 The Distribution Rate is the annual yield an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future.
Standardized Performance
For FIAX’s standardized performance, click here.
Prospectus
For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 563-6900 or visit our website at www.nicholasx.com.
Investors in the Fund will not have rights to receive dividends or other distributions with respect to the underlying reference asset.
The performance data quoted above 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 sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (833) 378-0717.
Distributions are not guaranteed. The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from month to month and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant.
Risk Information
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus. Please read the prospectuses carefully before you invest.
Investments involve risk. Principal loss is possible.
Investing in the Funds involves a high degree of risk.
THE FUND, TRUST, AND SUB-ADVISER ARE NOT AFFILIATED WITH ANY UNDERLYING ETF.
Due to the Funds’ investment strategies, the Funds’ investment exposures are concentrated in the same industries that are assigned to the underlying stock or ETF. As with any investment, there is a risk you could lose all or part of your investment in the Fund. Some or all of these risks may adversely affect the Funds’ net asset value (“NAV”) per share, trading prices, yields, total returns, and/or ability to meet their objective.
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.
Indirect Investment Risk
The underlying companies are not affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser, or their respective affiliates and is not involved with this offering in any way and has no obligation to consider your Shares in taking any corporate action that might affect the value of Shares. Investors in the Funds will not have voting rights and will not be able to influence management of the underlying company but will be exposed to the performance of the underlying company’s stock or ETF. Investors in the Funds will not have rights to receive dividends or other distributions or any other rights with respect to the underlying stock or ETF but will be subject to declines in the performance of the underlying stock.
U.S. Obligations Risk
The Funds may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, or instrumentalities, such as the U.S. Treasury. Payment of principal and interest on U.S. Government obligations may be backed by the full faith and credit of the United States or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. In the latter case, the investor must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment, which agency or instrumentality may be privately owned. There can be no assurance that the U.S. Government would provide financial support to its agencies or instrumentalities (including government sponsored enterprises) where it is not obligated to do so.
Derivatives Risk
Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation, and legal restrictions.
Currency Risk
The Fund is exposed to currency risk indirectly due to the underlying ETF’s investments. The underlying ETF’s net asset value is determined on the basis of the U.S. dollar, therefore, the underlying ETF may lose value if the local currency of a foreign market depreciates against the U.S. dollar, even if the local currency value of the underlying ETF’s holdings go up.
Options Contracts
The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.
Price Participation Risk
The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying stock or ETF over the Call Period. This means that if the underlying stock or ETF experiences an increase in value above the strike price of the sold call options during a Call Period, the Fund will likely not experience that increase to the same extent and may significantly underperform the underlying stock or ETF over the Call Period. Additionally, because the Fund is limited in the degree to which it will participate in increases in value experienced by the underlying stock or ETF over each Call Period, but has full exposure to any decreases in value experienced by the underlying stock or ETF over the Call Period, the NAV of the Fund may decrease over any given time period.
Distribution Risk
As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.
Counterparty Risk
The Fund is subject to counterparty risk by virtue of its investments in option contracts which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund.
Equity Market Risk
By virtue of the Fund’s investments in option contracts equity ETFs and equity indices, the Fund is exposed to common stocks indirectly which subjects the Fund to equity market risk.
High Portfolio Turnover Risk
The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses.
Non-Diversification Risk
Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.
Hedging Transactions Risk
Hedging transactions involve risks different than those of underlying investments. In particular, the variable degree of correlation between price movements of hedging transactions and price movements in the position being hedged means that losses on the hedge may be greater than gains in the value of the Fund’s positions, opportunities for gain may be limited or that there may be losses on both parts of a transaction.
Illiquid Investments Risk
The Fund may, at times, hold illiquid investments, by virtue of the absence of a readily available market for certain of its investments, or because of legal or contractual restrictions on sales.
Interest Rate Risk
The value of the Fund’s investments in fixed income Treasury securities will fluctuate with changes in interest rates.
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.
Yield to Maturity
Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures.
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Nicholas Wealth.
Launch & Structure Partner: Tidal Financial Group.
