The ETC 6 Meridian Mega Cap Equity ETF (the “Fund”) seeks to provide capital appreciation.
This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.
Annual Fund Operating Expenses |
ETC 6 Meridian Mega Cap Equity ETF
ETC 6 Meridian Mega Cap Equity ETF
|
|
|---|---|---|
| Management Fee | 0.31% | |
| Distribution and Service (12b-1) Fees | none | |
| Other Expenses | 0.16% | |
| Total Annual Fund Operating Expenses | 0.47% | [1] |
| [1] | Fees have been restated to reflect current year fees. |
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your cost would be:
Expense Example |
1 Year |
3 Years |
5 Years |
10 Years |
|---|---|---|---|---|
| ETC 6 Meridian Mega Cap Equity ETF | ETC 6 Meridian Mega Cap Equity ETF | USD ($) | 48 | 151 | 263 | 591 |
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example above, affect the Fund’s performance. For the fiscal year ended November 30, 2024, the Fund’s portfolio turnover rate was 153% of the average value of its portfolio.
The Fund is an actively managed exchange-traded fund (“ETF”) that invests, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in mega capitalization equity securities. Madison Avenue Financial Solutions, LLC, the Fund’s sub-adviser (the “Sub-Adviser”), considers mega capitalization companies to be the largest 10% of stocks included in the Russell 3000 Index by market capitalization. The equity securities in which the Fund invests are mainly common stocks.
In selecting investments for the Fund, the Sub-Adviser uses a quantitatively-driven strategy designed to emphasize high quality large-capitalization securities. Pursuant to this strategy, securities are first ranked on a composite of several variables intended to measure profitability, growth and ability to service financing obligations. Securities ranking the lowest on this composite measure, as expressed relative to the distribution of all securities measured, are excluded from the investable universe. Securities exhibiting low momentum, as defined below, are also excluded. The remaining securities are then ranked separately on measures of multiple investment factors including beta, momentum, yield, value and quality. Beta is intended to measure the exposure of a security to broad market risk and is defined here as the co-movement of the return of a security with the return of the securities included in the investable universe scaled by the volatility of the investable universe’s returns. For example, a security that has a beta of 1.0 has the same market risk as the securities in the investable universe, a security that has a beta less than 1.0 has less market risk than the securities in the investable universe, and a security that has a beta greater than 1.0 has more market risk than the securities in the investable universe. For purposes of this model, lower values for beta rank more favorably. Momentum refers to the trailing price appreciation of a security relative to the investable universe measured over the twelve-month period preceding the date of measurement. Yield is measured as the annual dividends or income paid divided by the price of the security. Value is calculated using ratios of fundamental measures of company size to the market value of that company. For purposes of this model, quality is measured as gross profitability. The securities that rank highest on a sequential percentile basis for each factor measure are included in the Fund’s portfolio, at weights determined based on the number of factors for which the security ranks highly.
The Fund is non-diversified and may invest a greater percentage of its assets in a particular issuer than a diversified fund.
The following bar chart and table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for certain time periods compare with the average annual total returns of the S&P 500® Index, a broad-based securities market index. All returns assume reinvestment of dividends and distributions. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available online at www.6meridianfunds.com/sixa or by calling toll-free 866-SIXM-ETF (749-6383).
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
| Return | Quarter/Year | |
| Highest Return | 14.01% | Q4/2022 |
| Lowest Return | -8.78% | Q2/2022 |
Average Annual Returns - ETC 6 Meridian Mega Cap Equity ETF |
Label |
1 Year |
Since Inception |
Inception Date |
|---|---|---|---|---|
| ETC 6 Meridian Mega Cap Equity ETF | Return Before Taxes | 22.50% | 14.92% | May 08, 2020 |
| ETC 6 Meridian Mega Cap Equity ETF | Return After Taxes on Distributions | Return After Taxes on Distributions | 22.02% | 14.38% | May 08, 2020 |
| ETC 6 Meridian Mega Cap Equity ETF | Return After Taxes on Distributions and Sale of Fund Shares | Return After Taxes on Distributions and Sale of Fund Shares | 13.64% | 11.87% | May 08, 2020 |
| S&P 500® Index (reflects no deduction for fees, expenses, or taxes) | S&P 500® Index (reflects no deduction for fees, expenses, or taxes) | 25.02% | 17.97% | May 08, 2020 |
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares of the Fund through tax-deferred arrangements, such as 401(k) plans or IRAs. In some cases, the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of shares of the Fund at the end of the measurement period.