Alpha Architect Global Factor Equity ETF · NASDAQ:AAVM
Alpha Architect Global Factor Equity ETF — Alpha Architect Tail Risk ETF — Pitch Deck (March 2024)
17 slides from Alpha Architect Global Factor Equity ETF's pitch deck, Mar 31, 2024
Slide 1: CAOS | Fund Overview
Build with conviction CAOS | Fund Overview Alpha Architect Tail Risk ETF CAOS seeks to maximize total return by investing in a combination of out-of-the-money puts, put spreads, and box spreads. 1
Slide 2: Standardized Returns as of 3/31/2024
Build with conviction Standardized Returns as of 3/31/2024 Annualized 3 Yr. Annualized 5 Yr. Annualized 10 Yr. Annualized Return YTD 1 Yr. Total Return Total Return Total Return Since Inception Expense Ratios Inception Name Ticker Date NAV Mkt. NAV Mkt. NAV Mkt. NAV Mkt. NAV Mkt. NAV Mkt. Gross Net1
Slide 3: Why consider CAOS?
Build with conviction 10+ year track record of excess returns 1 CAOS has consistently generated excess returns relative to the Intermediate Core Bond category , historically. Why consider Positive, asymmetric returns in years like 2020, historically CAOS? 2 CAOS buys deep out-of-the-money put option
Slide 4: 10+ year track record of results
Build with conviction 10+ year track record of results CAOS has consistently generated excess returns relative to Intermediate Core Bonds, historically. 4
Slide 5: Total return
Build with conviction 60% March 2023: AVOLX converts to CAOS 50% CAOS 45.03% CAOS 10+ year track record 40% Total return Arin Risk Advisors launched CAOS as a mutual fund on 8/14/2013, ticker symbol AVOLX. 30% Alpha Architect converted1 AVOLX to the ETF Int. Core structure in March 2023, and rebrand
Slide 6: Excess return
Build with conviction 6% Rolling 5-Year Excess Returns Won Lost # of pds. Win % Avg. excess return 5% CAOS vs. Int. Core 51 17 68 75.00% 0.94% Bond Funds2 4% 5-year rolling excess returns1 3% CAOS has consistently produced excess returns 0.94% average relative to Intermediate Core Bond average2. 2%
Slide 7: Positive, asymmetric returns
Build with conviction Positive, asymmetric returns CAOS buys deep out-of-the-money puts on the S&P 500 Index to hedge against short, sharp drawdowns. 7
Slide 8: Total Return
Build with conviction 50% CAOS returned 39.21% through 3/16/2020 40% 30% CAOS 22.42% Sharp drawdown: 2020 20% Stocks1 experienced a sharp sell-off in March S&P 500 Index 2020 in response to the onset of the COVID-19 18.40% Total Return 10% pandemic, then staged a rapid recovery. Int. Core Bond Avg.3
Slide 9: Positive returns during normal market conditions
Build with conviction Positive returns during normal market conditions Unlike other tail risk strategies, CAOS uses an active approach to trade with the general flow of the market during normal market conditions. 9
Slide 10: Total Return
Build with conviction 30% Stocks were 25% positive in 2023 S&P 500 Index 26.29% Bull market: 2023 20% Stocks1 finished the year up over 25%, fueled, in part, by news that the Fed would pause their Total Return 15% aggressive interest rate initiative to combat CAOS inflation. 13.30% 10% CAOS traded a
Slide 11: Low correlation, historically
Build with conviction Low correlation, historically Since inception, CAOS has been less correlated to the S&P 500 and Intermediate Core Bonds, making it a potentially valuable diversification tool. 11
Slide 12: Low correlation to stocks & bonds since inception
Build with conviction Low correlation to stocks & CAOS S&P 500 Index Int. Core Bonds Avg. bonds since inception CAOS 100.00% 1 2 3 • Minimal correlation to stocks and bonds , historically S&P 500 Index 19.11% 100.00% • May act as a diversifier to long-only equity positions Int. Core Bonds Avg. 13.04
Slide 13: Alpha Architect Executive Team
Build with conviction Wesley R. Gray, PhD Alpha Architect CEO | co-CIO • PhD/MBA from the University of Chicago – Booth School of Business, where he studied under Nobel Prize Winner Eugene Fama Alpha Architect • • B.S. The Wharton School of the University of Pennsylvania, magna cum laude United Stat
Slide 14: Arin Risk Advisors Portfolio Team
Build with conviction Joseph DeSipio, CFA, FRM | Chief Market Strategist • Leads strategy design and risk management Arin Risk Advisors • Previously held strategist and Lead Portfolio Manager positions with SEI Investments, Evergreen Investments, Wachovia and Vector Capital Management • BS, Indiana
Slide 15: Let’s talk next steps.
Build with conviction Subscribe to receive fund updates Stay up-to-date with Alpha Architect by subscribing to our email list. Receive quarterly commentary, fund Let’s talk updates, webinar invites and more. To respect your inbox, we typically send fewer than ten emails per month. next steps. See a
Slide 16: IMPORTANT INFORMATION
Build with conviction IMPORTANT INFORMATION This material has been distributed for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources b
Slide 17: Note on category average methodology
Build with conviction Note on category average methodology Constituents of a given category are determined by YCharts. As of 4/30/2024, the calculation method used to determine the category average’s returns changed to account for potentially different inception dates. Previously, a straight average
Alpha Architect Tail Risk ETF — Pitch Deck (March 2024) on 6ix