The RED Innovation Factor ETF systematically identifies and invests in mid-large cap US companies that demonstrate superior innovation characteristics. Unlike thematic funds that require predicting specific innovation outcomes and firm level R&D success, RED's factor-based approach captures the growth potential of innovation-driven companies with implicit top down sector allocations.
The RED Innovation Factor ETF seeks to provide long-term capital appreciation by investing in companies that demonstrate superior innovation characteristics within the mid-large cap US equity universe.
Our systematic approach identifies companies with high innovation potential through quantitative analysis of R&D investment, intellectual property development, and technological advancement metrics.
Innovation factors lead to future revenue growth and earnings surprises. Companies with superior innovation characteristics historically demonstrate stronger sales growth and market outperformance over time.
Analyzes 50+ innovation metrics including R&D intensity, patent quality, and technology adoption to identify superior innovators
Captures innovation-driven returns across all sectors without predicting specific themes or outcomes
0.333% expense ratio provides efficient access to innovation factors vs. higher-cost thematic alternatives
Require multiple predictions
Probability decay
Theme timing risk
More robust
Bottom-up selection
Systematic discipline
Current Premium/Discount
RED ETF vs NAV
Diamond Brothers is a research-driven investment management firm focused on systematic factor investing.
Diamond Brothers is dedicated to developing innovative investment strategies that identify and capture systematic risk factors in equity markets. Our research-driven approach combines academic rigor with practical implementation to deliver superior risk-adjusted returns for our clients.
We believe that innovation is a key driver of long-term value creation in equity markets. Our systematic approach to identifying innovation factors provides investors with exposure to companies that are likely to generate sustainable growth through research and development.
We focus on factors that have demonstrated persistent risk-adjusted returns across different market environments and economic cycles. Our innovation factor strategy represents the culmination of years of research into the relationship between R&D investment and future equity returns.
Note: Sales loads and account fees are not reflected in the bar chart. If these amounts were reflected, returns would be less than those shown.
| Period | RED ETF | NAV | Morningstar US Market Index |
|---|---|---|---|
| 1 Year | +25.8% | +25.9% | +21.1% |
| 5 Years | -- | -- | -- |
| 10 Years | -- | -- | -- |
| Since Inception | +25.8% | +25.9% | +21.1% |
Note: The Fund's inception date is 21.1. 5-year and 10-year returns will be available once the Fund has sufficient history.
The bar chart and table above provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for 1, 5, and 10 years compare with those of a broad measure of market performance (Morningstar US Market Index).
The information shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. The Fund's performance reflects the deduction of Fund expenses, including management fees, but does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The NAV (Net Asset Value) represents the Fund's underlying portfolio performance before trading costs, while the RED ETF returns reflect the actual market price performance that investors experience. The difference between NAV and market price returns demonstrates the impact of market trading dynamics and premium/discount fluctuations.
Benchmark Attribution: Morningstar US Market Index data is provided through Morningstar's Open Index Project, which offers free access to high-quality market indices for research and comparison purposes.
Important: How the Fund has performed in the past is not necessarily an indication of how the Fund will perform in the future.
Premium/Discount Notice: The Fund's shares may trade at a premium or discount to NAV. Premiums and discounts can be significant and may persist for extended periods.
Trading Notice: Shares are bought and sold at market price, not NAV. Market price returns may differ from NAV returns.
This graph shows the daily premium/discount of RED ETF shares relative to NAV over the past 12 months.
| 1 Yr. | Since Inception | |
|---|---|---|
| Fund NAV | -- | -- |
| Closing Price | -- | -- |
| 1 Yr. | Since Inception | |
|---|---|---|
| Fund NAV | -- | -- |
| Closing Price | -- | -- |
The performance data quoted 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 redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.
Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period. Diamond Brothers LLC's NAVs are calculated using prices as of 4:00 PM Eastern Time.
The closing market price is the Mid-Point between the Bid and Ask price as of the close of exchange. Since the Fund's Shares typically do not trade in the secondary market until several days after the Fund's inception, for the period from inception to the first day of secondary market trading in Shares, the NAV of the Fund is used to calculate market returns.
ETF Trading Risk: Shares are bought and sold at market price, which may be higher or lower than NAV. Market price returns may differ from NAV returns. The Fund's shares may trade at a premium or discount to NAV. Premiums and discounts can be significant and may persist for extended periods.
| PERCENTAGE OF NET ASSETS | TICKER | NAME | IDENTIFIER | SHARES HELD | MARKET VALUE |
|---|---|---|---|---|---|
| 7.2% | NVDA | NVIDIA Corporation | 67066G104 | 125,000 | $7,200,000 |
| 6.8% | MSFT | Microsoft Corporation | 594918104 | 180,000 | $6,800,000 |
| 5.9% | GOOGL | Alphabet Inc. | 02079K305 | 45,000 | $5,900,000 |
| 5.4% | AAPL | Apple Inc. | 037833100 | 32,000 | $5,400,000 |
| 4.8% | TSLA | Tesla, Inc. | 88160R101 | 24,000 | $4,800,000 |
| 4.2% | AMZN | Amazon.com, Inc. | 023135106 | 28,000 | $4,200,000 |
| 3.8% | META | Meta Platforms, Inc. | 30303M102 | 35,000 | $3,800,000 |
| 3.5% | NFLX | Netflix, Inc. | 64110L106 | 22,000 | $3,500,000 |
| 3.2% | CRM | Salesforce, Inc. | 79466L302 | 18,000 | $3,200,000 |
| 2.9% | ADBE | Adobe Inc. | 00724F101 | 15,000 | $2,900,000 |
Data as of December 19, 21.1
Holdings are subject to change
Daily Holdings Disclosure: The Fund's portfolio holdings that form the basis for the next calculation of current net asset value per share are the Fund's portfolio holdings as of the close of business on the prior business day. This information is updated daily and available on this website before the opening of regular trading on the primary listing exchange (CBOE BZX).
Last Updated: December 19, 21.1 (as of close of business)
Next Update: Available before 9:30 AM Eastern Time on the next business day
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Document Availability: All documents available free upon request. Call 1-555-123-4567 or write to Diamond Brothers LLC, 123 Main Street, Suite 1000, New York, NY 10001.