Key Takeaways
- • RSBT holds $155.64 million in assets under management with 1-year fund flows of $62.09 million since inception on February 8, 2023, indicating strong early traction for the Return Stacked Bonds & Managed Futures ETF.
- • The fund targets 200% aggregate notional exposure by combining simultaneous exposure to US fixed income markets (bonds and Treasury securities) and a managed futures strategy across commodities, currencies, equities, and interest rate instruments with no geographic restrictions.
- • Managed by Tidal Investments LLC with a 1.01% expense ratio, RSBT employs an active, synthetic replication strategy with full discretion over duration risk and uses a proprietary trend-following process to generate long and short positions across all four major asset classes.
- • Distribution yield of 2.96% with minimal discount to NAV (0.03%) suggests efficient fund pricing and consistent income generation, with ordinary income tax treatment and maximum long-term capital gains taxation at 20%.
- • High portfolio turnover expected due to frequent futures rolling across Treasury securities, broad-based bond ETFs, and managed futures positions, with US T-bills and cash equivalents held for collateral and supplemental income.
Summary
The Return Stacked Bonds & Managed Futures ETF (RSBT), issued by TFG Parent Holdings LLC under the Return Stacked brand, represents a multi-strategy approach designed to simultaneously capture exposure to fixed income markets and managed futures in a single fund structure. Launched on February 8, 2023, RSBT has accumulated $155.64 million in assets under management, reflecting $62.09 million in positive fund flows during its first year of operation.
The fund's investment strategy centers on dual exposure management. The bonds component seeks the total return of the broad US fixed income market through direct investment in US Treasury securities and futures, as well as broad-based bond ETFs, with the adviser retaining full discretion to adjust duration risk. The managed futures component invests across global futures markets—commodities, currencies, equity indexes, bonds, and interest rate securities—employing a proprietary trend-following process to identify and capture price momentum while managing individual instrument risk. Critically, RSBT targets 100% notional exposure to each component strategy, resulting in an aggregate notional exposure target of 200%, amplifying the fund's potential return profile and sensitivity to market movements.
The fund's structure employs active management with synthetic replication methodology and may gain indirect exposure through a Cayman Islands subsidiary to optimize tax efficiency and operational flexibility. RSBT expects to maintain both long and short positions across all four major asset classes, with portfolio turnover anticipated to be substantial due to frequent futures rolling. The fund maintains US T-bills and cash equivalents as collateral reserves and for additional income generation.
From a cost and yield perspective, RSBT charges an expense ratio of 1.01% and currently offers a dividend yield of 2.96% on an indicated basis. The fund trades at a minimal 0.03% discount to net asset value, indicating tight pricing efficiency. With 8.05 million shares outstanding, distributions are treated as ordinary income for tax purposes, though capital gains are taxed at the maximum long-term rate of 20%. The fund is managed by Tidal Investments LLC and can be accessed via returnstackedetfs.com.
The fund's investment strategy centers on dual exposure management. The bonds component seeks the total return of the broad US fixed income market through direct investment in US Treasury securities and futures, as well as broad-based bond ETFs, with the adviser retaining full discretion to adjust duration risk. The managed futures component invests across global futures markets—commodities, currencies, equity indexes, bonds, and interest rate securities—employing a proprietary trend-following process to identify and capture price momentum while managing individual instrument risk. Critically, RSBT targets 100% notional exposure to each component strategy, resulting in an aggregate notional exposure target of 200%, amplifying the fund's potential return profile and sensitivity to market movements.
The fund's structure employs active management with synthetic replication methodology and may gain indirect exposure through a Cayman Islands subsidiary to optimize tax efficiency and operational flexibility. RSBT expects to maintain both long and short positions across all four major asset classes, with portfolio turnover anticipated to be substantial due to frequent futures rolling. The fund maintains US T-bills and cash equivalents as collateral reserves and for additional income generation.
From a cost and yield perspective, RSBT charges an expense ratio of 1.01% and currently offers a dividend yield of 2.96% on an indicated basis. The fund trades at a minimal 0.03% discount to net asset value, indicating tight pricing efficiency. With 8.05 million shares outstanding, distributions are treated as ordinary income for tax purposes, though capital gains are taxed at the maximum long-term rate of 20%. The fund is managed by Tidal Investments LLC and can be accessed via returnstackedetfs.com.
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