Slide 1: Nicholas Fixed Income Alternative ETF
NICHOLAS FIXED INCOME ALTERNATIVE ETF © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL. This material must be preceded or accompanied by a prospectus.
Slide 2: Overview
Overview Nicholas Wealth Management provides investment advisory services to individuals and institutions. We use distinct tactics to measure risk and seek to minimize portfolio volatility. With XFUNDS, our primary research focuses on risk mitigation and income producing securities. The firm’s strat
Slide 3: A New Kind of Bond Fund
A New Kind of Bond Fund © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL. 3
Slide 4: Nicholas Fixed Income Alternative ETF
Nicholas Fixed Income Alternative ETF The Nicholas Fixed Income Alternative ETF (FIAX) is an actively managed ETF that is distinct in the fixed-income space. Through the use of options, the fund can replicate a diversified portfolio of income producing ETFs while seeking to mitigate risk with a core
Slide 5: Strategy
Strategy FIAX consists of 3 components: U.S. Treasuries Options spread across Directional multiple ETFs S&P 500 Exposure Under normal circumstances, the Fund will invest at least The Fund’s defined risk option By creating a directional S&P 80% of its net assets in U.S. premium strategy uses options
Slide 6: Current Yield-to-Maturity
Current Yield-to-Maturity 4.8% • Past performance is not indicative of future results © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL.
Slide 7: Average Duration
Average Duration 1.64 yrs • Duration: The average time it takes to receive all the cash flows of a bond, weighted by the present value of each of the cash flows. © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL.
Slide 8: Current Distribution Yield
Current Distribution Yield 7% Current Distribution Yield 7% Disclosure: The performance data quoted above represents past performance. Past 4.00% performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, whe
Slide 9: Standardized Performance Table
Standardized 7% Performance Table to Most Current Recent Distribution Yield Quarter-End 06/30/2024 Fund Ticker 1MO 3MO 6MO YTD 1YR 3YR 5YR Since Inception Cumulative Since Inception Annualized FIAX NAV 1.07% 1.20% 1.39% 1.39% 3.34% – – 4.77% 2.98% FIAX MKT 1.08% 1.32% 1.57% 1.57% 3.31% – – 4.83% 3.0
Slide 10: Strategy
Strategy The Nicholas Fixed Income Alternative ETF (FIAX) Fund is an actively managed exchange-traded fund (“ETF”) that seeks to provide income using U.S. Treasury fixed income securities and a “defined risk option premium.” • The Fund’s defined risk option premium strategy uses • Under normal circu
Slide 11: Not Your Grandpa's Bond Fund
Not Your Grandpa’s Bond Fund © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL. 11
Slide 12: U.S Treasury Securities
U.S Treasury Securities U.S. Treasuries are debt obligations issued and backed by the full faith and credit of the United States government. That backing carries weight due to the federal government's taxing power and the relative size and strength of the U.S. economy. U.S. Treasury securities can p
Slide 13: History of Government Bonds
History of Government Bonds • The U.S. Savings Bonds Program Begins • On February 1, 1935, President Franklin D. Roosevelt signed legislation that allowed the U.S. Department of the Treasury to sell a new type of security, the U.S. Savings Bond. One month later, the first Series A Savings Bond was i
Slide 14: Full faith and credit of the US Government
Government Bonds Full faith and credit of the US Government © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL.
Slide 15: Options Overlay
Options Overlay Options writing is an attractive way to generate income with a defined risk exposure. By creating a directional S&P 500 option position, the Fund can participate in upside movement of the underlying SPY ETF. Stability Time Decay Replicate Options can be a very efficient Time decay of
Slide 16: Structure
Structure + = Government Options Nicholas Fixed Income Alternative Bonds Overlay ETF © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL.
Slide 17: Vertical Option Spreads
Vertical Option Spreads FIAX seeks to achieve its investment objective primarily by entering into options transactions that are either vertical credit spread transactions or vertical debit spread transactions. In each vertical spread transaction, the To initiate a debit spread transaction, The Fund’
Slide 18: Structure: Selling Options Spreads Across Diversified Asset Classes
Structure: Selling Options Spreads Across Diversified Asset Classes The Fund will enter into debit and/or credit spread transactions based upon the risk/return profile of the underlying asset and sector. The selection of option positions will be based on the outlook of the broader economic and marke
Slide 19: Diversified Asset Classes
Diversified Asset Classes The Fund’s defined risk option premium strategy uses options on ETFs across multiple asset classes (e.g., equities, commodities, fixed income). S&P 500 - SPY ENERGY - XLE Large cap U.S. Index Oil, gas, fuel and energy services REAL ESTATE - VNQ PREFERRED - FPE Office buildi
Slide 20: Top Holdings
Top 10 Holdings: Holdings are subject to change without notice. 02/14/2024 Name CUSIP Shares Price Market Value Weightings Cash & Other Cash&Other 2,975,786 1.00 2,975,786.37 4.70% UNITED STATES TREAS NTS 1% 12/15/2024 91282CDN8 25,374,000 96.62 24,516,639.44 38.73% UNITED STATES TREAS NTS 0.25% 03/
Slide 21: Portfolio Managers
Portfolio Managers David Nicholas Jay Pestrichelli Michael Venuto Charles A. Ragauss, CFA Portfolio Manager of FIAX Portfolio Manager of FIAX Portfolio Manager of FIAX Chief Executive Officer of Chief Executive Officer and Co- Chief Investment Officer, Toroso Portfolio Manager of FIAX Nicholas Wealt
Slide 22: Investments involve risk. Principal loss is possible.
Investments involve risk. Principal loss is possible. 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 r
Slide 23: Interest Rate Risk
Interest Rate Risk. The value of the Fund’s investments in fixed-income Treasury securities will fluctuate with changes in interest rates. Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities trans
Slide 24: Contact Us
Contact Us www.nicholasx.com (855) 563-6900 NICHOLAS FIXED INCOME info@nicholaswealth.com ALTERNATIVE ETF © 2024 XFUNDS. ALL INFORMATION CO NFIDENTIAL.