UPSD aims to capture enhanced upside potential with similar long-term risk

Aptus Capital Advisors, LLC (Aptus) announces the launch of the Aptus Large Cap Equity Upside ETF (Cboe: UPSD), an actively managed ETF designed to offer U.S. equity investors enhanced return potential by layering additional return drivers over a low-volatility core large-cap portfolio. UPSD seeks greater-than-market upside during favorable conditions while managing downside exposure, aiming for a long-term risk profile similar to that of U.S. equities. This launch further expands Aptus’ suite of actively managed ETFs, which collectively manage $4 billion in assets.

UPSD’s investment strategy centers on a core portfolio of large-cap U.S. stocks selected for their quality, value, and growth attributes, strategically weighted to help reduce volatility, and seeks to optimize risk-adjusted returns. We believe this diversified core provides a solid foundation for consistent growth across market cycles.

To further enhance returns, UPSD incorporates additional equity exposure during positive market trends and collects put option premiums when conditions are favorable. This approach enables the fund to increase market exposure over time while actively managing downside risk, offering investors a disciplined path to growth and risk mitigation.

“As we navigate an inflationary environment, equities hold a unique advantage in helping grow purchasing power through rising revenues and dividends,” said JD Gardner, Founder and Portfolio Manager at Aptus. “UPSD was designed to increase equity exposure when conditions are favorable and scale back when risk intensifies, offering an effective tool for investors seeking growth with structured downside management.”

UPSD builds on Aptus’ expertise in options-based ETFs, a category in which it has seen considerable success with products like the Aptus Defined Risk ETF (DRSK) and the Aptus Collared Investment Opportunity ETF (ACIO). Both DRSK and ACIO recently celebrated their five-year anniversaries and have received 5-star overall ratings from Morningstar, underscoring their strong risk-adjusted performance as of September 30, 2024.

DRSK earned the rating in the Morningstar US Short-Term Bond category out of 568 funds, while ACIO earned its rating in the US Fund Equity Hedged category out of 459. Morningstar Star ratings are based on risk-adjusted returns.*

For more information on UPSD and Aptus’ full suite of ETF offerings, visit www.aptusetfs.com.

About Aptus Capital Advisors

Founded in 2013, Aptus Capital Advisors is an SEC-registered investment advisor committed to developing ETFs that provide risk-managed growth through targeted exposure and strategic hedging. Aptus ETFs are crafted to help financial advisors and their clients pursue better outcomes through market participation combined with effective downside protection.

Aptus Capital Advisors is an SEC-registered investment advisor and serves as the Fund’s investment advisor. The funds are distributed by Quasar Distributors, LLC.

Disclosures

An investor should carefully consider the investment objectives, risks, charges and expenses of the ETFs as applicable, before investing. The prospectus of UPSD contains this and other important information and is available free of charge by calling toll-free at 1-800-617-0004 or writing to Aptus at 265 Young Street, Fairhope, AL 36532. The prospectus should be read carefully before investing.

Investing involves risk and principal loss is possible. Shares of ETFs are bought and sold in the secondary market at market prices (not NAV) and are not individually redeemed from the Fund. Derivative Securities Risk. The Fund invests in options that derive their performance from the performance of an underlying reference asset. Derivatives, such as the options in which the Fund invests, can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. High Portfolio Turnover Risk. The Fund may frequently buy and sell portfolio securities and other assets to rebalance the Fund’s exposure to specific securities. New Fund Risk. The Fund is a recently organized investment company with a limited operating history. Non-Diversification Risk. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. Options Risk. Selling (writing) and buying options are speculative activities and entail greater than ordinary investment risks. Futures Contracts Risk. A decision as to whether, when, and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events.

*© 2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds and separate accounts) with at least a three-year history without adjustment for sales load. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk- Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star.

The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36 - 59 months of total returns, 60% five-year rating/40% three-year rating for 60 - 119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 9/30/2024, DRSK received the following ratings based on risk-adjusted returns: for 1 year – 5*s out of 554 funds; 3 year - 4*s out of 522 funds; and 5 year – 5*s out of 486 funds. As of 9/30/2024, ACIO received the following ratings based on risk-adjusted returns: for 1 year – 4*s out of 339 funds; 3 year - 5*s out of 257 funds; 5 year – 5*s out of 124 funds. Past performance is no guarantee of future results.

Aptus Capital Advisors is the advisor to the Aptus Defined Risk ETF (DRSK) and Aptus Collared Investment Opportunity ETF (ACIO) which are distributed by Quasar Distributors, LLC.

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