E23. STACKED UNPACKED: Trend, Carry, and a Narrative-Busting Quarter
Based on our Q1 2026 commentary for the Return Stacked ETF suite, Corey Hoffstein and Adam Butler provide a detailed analysis of the strong quarter for trend following and carry, with a particular focus on the energy complex's impact. The conversation also explores the unique diversification benefits of merger arbitrage and provides a three-year retrospective on the efficacy of their trend replication models.
Topics Discussed
* Overview of the Return Stacked ETF suite's growth and the core concept of capital efficiency
* In-depth look at the trend following strategy, highlighting its three-year success in replicating the managed futures category beta
* Analysis of the Carry strategy's strong Q1 performance, primarily driven by geopolitical events affecting the energy markets
* Discussion of the Merger Arbitrage strategy as a unique diversifier against traditional credit risk
* Examination of the RSSX ETF, which stacks a risk-balanced overlay of gold and Bitcoin on U.S. equities
* Demonstration of the new Portfolio Visualizer tool for modeling and understanding Return Stacking concepts
* Explanation of why broad market diversification, not just shorting equities, provides crisis alpha in trend strategies
* Discussion on the complementary relationship between Trend and Carry strategies in different market environments
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.
For prospectus and performance and risks visit the fund pages.
RSST [https://www.returnstackedetfs.com/rsst-return-stacked-us-stocks-managed-futures/] – [https://www.returnstackedetfs.com/rsst-return-stacked-us-stocks-managed-futures/] https://www.returnstackedetfs.com/rsst-return-stacked-us-stocks-managed-futures/ [https://www.returnstackedetfs.com/rsst-return-stacked-us-stocks-managed-futures/]
RSIT [about:blank]- https://www.returnstackedetfs.com/rsit-international-stocks-managed-futures/ [about:blank]
RSBT – [https://www.returnstackedetfs.com/rsbt-return-stacked-bonds-managed-futures/] https://www.returnstackedetfs.com/rsbt-return-stacked-bonds-managed-futures/ [https://www.returnstackedetfs.com/rsbt-return-stacked-bonds-managed-futures/]
RSSY – [https://www.returnstackedetfs.com/rssy-return-stacked-us-stocks-futures-yield/] https://www.returnstackedetfs.com/rssy-return-stacked-us-stocks-futures-yield/ [https://www.returnstackedetfs.com/rssy-return-stacked-us-stocks-futures-yield/]
RSBY – [https://www.returnstackedetfs.com/rsby-return-stacked-bonds-futures-yield/] https://www.returnstackedetfs.com/rsby-return-stacked-bonds-futures-yield/ [https://www.returnstackedetfs.com/rsby-return-stacked-bonds-futures-yield/]
RSBA – [https://www.returnstackedetfs.com/rsba-return-stacked-bonds-merger-arbitrage/] https://www.returnstackedetfs.com/rsba-return-stacked-bonds-merger-arbitrage/ [https://www.returnstackedetfs.com/rsba-return-stacked-bonds-merger-arbitrage/]
RSSB – [https://www.returnstackedetfs.com/rssb-return-stacked-global-stocks-bonds/] https://www.returnstackedetfs.com/rssb-return-stacked-global-stocks-bonds/ [https://www.returnstackedetfs.com/rsba-return-stacked-bonds-merger-arbitrage/]
RSSX – [https://www.returnstackedetfs.com/rssx-return-stacked-us-stocks-gold-bitcoin/] https://www.returnstackedetfs.com/rssx-return-stacked-us-stocks-gold-bitcoin/ [https://www.returnstackedetfs.com/rssx-return-stacked-us-stocks-gold-bitcoin/]
BTGD – [https://quantifyfunds.com/stackedbitcoingoldetf/btgd/] https://quantifyfunds.com/stackedbitcoingoldetf/btgd/ [https://quantifyfunds.com/stackedbitcoingoldetf/btgd/]
RSSX does not invest directly in Bitcoin or Gold.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Return Stacked® U.S. Stocks & Gold/Bitcoin ETF. This and other important information about the ETF is contained in the prospectus, which can be obtained by calling 1-844-737-3001 [tel:18447373001] or clicking here [https://www.returnstackedetfs.com/]. The prospectus should be read carefully before investing.
The Return Stacked® U.S. Stocks & Gold/Bitcoin ETF is distributed by Foreside Fund Services, LLC, Member FINRA/SIPC. Foreside is not related to Tidal, Newfound, or ReSolve.
Definitions:
Duration: refers to the average life of a debt instrument and serves as a measure of that instrument’s interest rate risk. Beta: how much an investment moves vs. a benchmark (like the market). Alpha: refers to returns above that of a passive market benchmark SocGen: is a common abbreviation for Société Générale S.A. Trend Index: tracks returns from trend-following strategies, aiming to capture gains from sustained market price movements across assets. FTSE 100 Index: Financial Times Stock Exchange 100 Index DAX index: Deutscher Aktienindex is the benchmark stock market index of the Frankfurt Stock Exchange Nikkei 225 or Nikkei Stock Average is the leading stock market index for the Tokyo Stock Exchange (TSE) Alpha merger Index: tracks returns from merger arbitrage strategies, aiming to capture deal-related profits independent of the broader market.
A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded.
Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Brokerage commissions may apply and would reduce returns. Bitcoin Investment Risk: The Fund’s indirect investment in bitcoin, through futures contracts and Underlying Funds, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing bitcoin network, fluctuating acceptance levels, and unpredictable usage trends. Not being a legal tender and operating outside central authority systems like banks, bitcoin faces potential government restrictions. The value of bitcoin has historically been subject to significant speculation, making trading and investing in bitcoin reliant on market sentiment rather than traditional fundamental analysis. Blockchain Technology Risk: Blockchain technology, which underpins bitcoin and other digital assets, is relatively new, and many of its applications are untested. The adoption of blockchain and the development of competing platforms or technologies could affect its usage. Cayman Subsidiary Risk: By investing in the Fund’s Cayman Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The futures contracts and other investments held by the Subsidiary are subject to the same economic risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in the Fund’s Prospectus, is not subject to all the investor protections of the 1940 Act. Commodity Risk: Investing in physical commodities is speculative and can be extremely volatile. Commodity-Linked Derivatives Tax Risk: The tax treatment of commodity-linked derivative instruments may be adversely affected by changes in legislation, regulations, or other legally binding authority. As a registered investment company (RIC), the Fund must derive at least 90% of its gross income each taxable year from certain qualifying sources of income under the Internal Revenue Code. If, as a result of any adverse future legislation, U.S. Treasury regulations, and/or guidance issued by the Internal Revenue Service, the income of the Fund from certain commodity-linked derivatives, including income from the Fund’s investments in the Subsidiary, were treated as non-qualifying income, the Fund may fail to qualify as RIC and/or be subject to federal income tax at the Fund level. The uncertainty surrounding the treatment of certain derivative instruments under the qualification tests for a RIC may limit the Fund’s use of such derivative instruments. Commodity Pool Regulatory Risk: The Fund’s investment exposure to futures instruments will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and the Commodity Futures Trading Commission rules. Because the Fund is subject to additional laws, regulations, and enforcement policies, it may have increased compliance costs which may affect the operations and performance of the Fund. Credit Risk: Credit risk refers to the possibility that the issuer of a security will not be able to make principal and interest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. Derivatives Risk: Derivatives are instruments, such as futures contracts, whose value is derived from that of other assets, rates, or indices. The use of derivatives for non-hedging purposes may be considered to carry more risk than other types of investments. Digital Asset Risk: Digital assets like bitcoin, designed as mediums of exchange, are still an emerging asset class and are not presently widely used as such. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility. Equity Market Risk: By virtue of the Fund’s investments in equity securities, equity ETFs, and equity index futures agreements, the Fund is exposed to equity securities both directly and indirectly which subjects the Fund to equity market risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers. Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests. Gold Investment Risks: The Fund will not invest directly in gold but will gain exposure through gold futures contracts and Underlying Funds. These investments are subject to significant risk due to the inherent volatility and unpredictability of the commodities markets. The value of these investments is typically derived from the price movements of physical gold or related economic variables. Leverage Risk: As part of the Fund’s principal investment strategy, the Fund will make investments in futures contracts to gain long and short exposure across four major asset classes (commodities, currencies, fixed income, and equities). These derivative instruments provide the economic effect of financial leverage by creating additional investment exposure to the underlying instrument, as well as the potential for greater loss. New Fund Risk: The Fund is a recently organized with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. Non-Diversification Risk: The Fund is non-diversified, meaning that it is permitted to invest a larger percentage of its assets in fewer issuers than diversified funds. Underlying Fund Risk: The Fund’s investment strategy, involving indirect exposure to bitcoin and gold through one or more Underlying Funds, is subject to the risks associated with bitcoin as well as gold. Shareholders in the Fund bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of the Underlying Funds.
Tidal Investments, LLC (“Tidal”) serves as investment adviser to the Funds and the Funds’ Subsidiary.
Newfound Research LLC (“Newfound”) serves as investment sub-adviser to the RSST, RSBT, RSSY, RSBA, RSSB, RSSX and RSIT.
ReSolve Asset Management SEZC (Cayman) (“ReSolve”) serves as futures trading advisor to the Return Stacked® Bonds & Managed Futures ETF (RSBT), Return Stacked® U.S. Stocks & Managed Futures ETF (RSST), Return Stacked® US Stocks & Futures Yield ETF (RSSY), Return Stacked® Bonds & Futures Yield ETF (RSBY), Return Stacked® U.S. Stocks & Gold/Bitcoin (RSSX), and Returned Stacked® International Stocks & Managed Futures (RSIT).
Quantify Chaos Advisors, LLC (“Quantify”) serves as the sub-adviser to the STKd 100% Bitcoin & 100% Gold ETF (BTGD).
Quantify has entered into a brand licensing agreement with Newfound and Resolve, granting Quantify the right to use the “STKd” brand, a derivative of Return Stacked®. Neither the Trust or the Advisor is a party to this agreement. In exchange for the branding rights, Quantify will pay Newfound and Resolve a fee based on the percentage of the Fund’s unitary management fee.
The Return Stacked® ETFs Suite is distributed by Foreside Fund Services, LLC, Member FINRA/SIPC. Foreside is not related to Tidal, Newfound, ReSolve or Quantify.
