KONG Profile
The Formidable Fortress ETF is designed to achieve its investment objective by focusing on large- and mid-cap equity securities. The fund primarily invests in common stocks of companies within this capitalization range, encompassing a diverse array of industries. In addition to common stocks, the fund may also hold related depositary receipts, real estate investment trusts (REITs), and other equity investments or ownership interests in various business enterprises. This broad approach allows the fund to capture growth opportunities across a range of established and mid-sized companies.
The funds investment strategy involves allocating a significant portion of its assets to common stocks of large- and mid-cap companies, which constitute its "Investable Universe." By focusing on these market segments, the fund aims to benefit from the stability and growth potential typically associated with established companies. The inclusion of REITs further enhances the funds exposure to income-generating real estate investments, adding another layer of diversification.
To manage risk and enhance returns, the fund may engage in derivative investments. These derivatives can include options, which offer flexibility in hedging and speculation, as well as volatility-linked exchange-traded funds (ETFs) and exchange-traded notes (ETNs). Such instruments are used to gain exposure to market volatility or to hedge against potential fluctuations in the equity markets.
The Formidable Fortress ETF operates as a non-diversified fund, meaning it does not concentrate its investments in any single sector or geographic area. Instead, it maintains a broader investment scope, aiming to mitigate risk through diversification across multiple asset classes and market segments. This strategy supports the fund's objective of providing investors with a balanced exposure to large- and mid-cap equities while utilizing derivatives to navigate market conditions effectively.
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