Exchange-Traded Funds
Transparent, liquid ETF funds, seeking high yields and low duration by investing in high quality residential mortgage-backed securities and other fixed income investments.
Regan Capital’s exchange-traded funds (ETFs) offer actively managed exposure to the U.S. mortgage market in a transparent, exchange-traded structure with intraday liquidity. The strategies focus on agency-backed U.S. residential mortgage-backed securities (RMBS) and are designed to seek consistent income while managing interest rate and credit risk.
ETF Offerings
Regan Capital’s ETFs provide actively managed exposure to specialized fixed-income markets through transparent, exchange-traded vehicles. MBSX focuses on fixed-rate residential mortgage-backed securities, MBSF provides floating-rate exposure to help manage rate risk, and UCITS extends our strategy to European investors through a dedicated fund structure.
Strategy Advantages
Accessibility
Because ETFs trade on an exchange, investors buy and sell via their broker, providing trading flexibility and intraday portfolio management.
Liquidity
ETFs can be bought and sold throughout the day, giving investors the ability to execute trades quickly at their discretion.
Relatively Lower Costs
ETFs generally have relatively low expense ratios.
Potential Tax Efficiency
ETFs may offer potential tax efficiency, as investors are typically taxed only on dividends, with capital gains or losses realized only upon the sale of ETF shares.
Transparency
Portfolio holdings are disclosed on a daily basis.
No Minimum
Many ETFs tend to have no minimum purchase requirements.
MBSX Disclosures
Investing involves risk and principal loss is possible.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the fund, please click here or call (800)-617-0004. Please read the prospectus carefully before investing.
Distributed by Quasar Distributors, LLC
MBSF Disclosures
Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (844)-988-6273 or at www.regancapital.com/etfs/mbsf/.
Regan Floating Rate MBS ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Northern Lights Distributors, LLC.
Important Risks
Exchange Traded Fund investing involves risk. Principal loss is possible. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and nonrated securities present a greater risk of loss of principal and interest than higher-rated securities do.
The Fund is newly formed and has limited operating history. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by any government agency. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.
The Fund may effect creations and redemptions in cash and therefore may recognize gains that may not have been recognized if it were to distribute portfolio securities in-kind. Investments in shares may be less tax-efficient that an investment in an ETF that distributes portfolio securities entirely in- kind.
Diversification does not ensure a profit or guarantee against loss.
While the shares of ETFs are tradeable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns.
As a result of its active trading strategy, the Fund may incur higher levels of brokerage fees and commissions, and cause higher levels of current tax liability to shareholders in the Fund.
Glossary / Definitions
Agency-Backed Residential Mortgage-Backed Securities (RMBS) are mortgage-backed bonds issued by U.S. government-sponsored entities (such as Fannie Mae, Freddie Mac, or Ginnie Mae) where the interest rate resets periodically based on a benchmark rate, resulting in payments that adjust over time and typically lower interest rate risk compared to fixed-rate securities.
Exchange-Traded Fund (ETF) is a type of polled investment fund that holds multiple underlying assets - such as stocks, bonds, or commodities - and trades on stock exchanges, similar to individual stocks.
Floating-Rate is an investment with investment payments that float or adjust periodically based upon a predetermined benchmark.
