In this special interview, Mike Philbrick explores the principles of systematic macro investing and the behavioral challenges investors face when attempting to diversify traditional portfolios. He explains how Return Stacking addresses the common funding dilemma by layering alternative strategies on top of a core stock-and-bond portfolio rather than replacing existing allocations. Using the Return Stacked® Global Balanced & Macro ETF (RGBM) as a framework, the discussion illustrates how this institutional-grade approach aims to improve portfolio construction—seeking true diversification and potentially higher risk-adjusted returns without requiring investors to abandon their core holdings.

Topics Discussed

1. Defining systematic macro as a data-driven, rules-based strategy across global assets.
2. The vulnerability of traditional 60/40 stock-bond portfolios to inflationary shocks.
3. The funding dilemma and behavioral challenges when adding alternatives by selling core assets.
4. Introducing Return Stacking to layer diversifying strategies on top of core holdings.
5. Applying the institutional concept of portable alpha to individual investor portfolios.
6. The mechanics of using a capital-efficient ETF to achieve greater than 100% exposure.
7. Reducing behavioral tracking error by preserving an investor's familiar core allocations.
8. The goal of outperforming underlying betas by having the stacked strategy beat its cost of financing.

Return Stacked® Global Balanced & Macro ETF (“RGBM” or the “ETF”) is an alternative mutual fund, as such, RGBM is permitted to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. RGBM uses leverage and derivative instruments to stack the returns of a global balanced strategy with those of a systematic macro strategy which can magnify gains and losses.

Past Performance is not a guarantee of future results.

Commissions, management fees, performance fees and operating expenses may all be associated with an investment in RGBM. The ETF is not guaranteed, its value changes frequently and past performance may not be repeated. The ETF Facts and prospectus contain important detailed information about the ETF. Please read the relevant documents before investing.

LongPoint Asset Management Inc. (“LongPoint”) is the Investment Fund Manager of RGBM.

ReSolve Asset Management Inc. (“ReSolve Canada”) is the Portfolio Manager of RGBM.

ReSolve Asset Management SEZC (Cayman) (“ReSolve Global”) is the Portfolio Sub-Advisor of RGBM.

Newfound Research LLC (“Newfound”) is a Co-Promotor of RGBM.

In this in-depth conversation, Corey Hoffstein breaks down merger arbitrage as a distinct risk premium rather than a true arbitrage strategy. He explains how investors can capture the residual spread in announced M&A deals, compares merger arbitrage to traditional credit markets, and discusses why it can offer a low-correlation return stream relative to stocks and bonds. The discussion also explores how return stacking and portable alpha frameworks can enhance portfolio efficiency, positioning merger arbitrage as a powerful diversifier—particularly as an alternative to credit risk within modern portfolio construction.

Topics Discussed

1. Defining merger arbitrage as a risk premium for bearing deal break risk and the time value of money
2. The concept of Return Stacking to add diversifying strategies without selling core assets
3. Comparing the idiosyncratic nature of merger arbitrage risk to the more cyclical credit risk found in corporate bonds
4. Utilizing a combination of Treasuries and merger arbitrage as a direct alternative to corporate bond allocations
5. Addressing the behavioral challenges of traditional diversification by reducing tracking error against standard benchmarks
6. The argument for merger arbitrage as a persistent and unique risk premium, distinct from alpha-seeking strategies
7. Overcoming the historical packaging and adoption challenges of merger arbitrage funds for financial advisors
8. Democratizing institutional investment concepts like portable alpha for a wider audience

Definitions

Alpha: refers to returns above that of a passive market benchmark

Tracking error is the variability in the difference between a strategy’s returns and the investor’s benchmark returns.

Beta: How much an investment moves vs. a benchmark (like the market).

Duration refers to the average life of a debt instrument and serves as a measure of that instrument’s interest rate risk.

A Basis Point is equal to 0.01% and is commonly used to express changes in interest rates, fees, or investment returns. For example, 50 basis points equals 0.50%.

Leverage Risk. As part of the Fund’s principal investment strategy, the Fund will make investments in futures contracts. 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. You could lose all or substantially all of your investment in the Fund should the Fund’s trading positions suddenly turn unprofitable. The net asset value of the Fund while employing leverage will be more volatile and sensitive to market movements. Stacking does not guarantee outperformance and diversification does not guarantee a profit or prevent a loss.

Merger-Arbitrage Risk. Merger-arbitrage investing involves the risk that the outcome of a proposed event, whether it be a merger, reorganization, or other event, will prove incorrect and that the Fund’s return on the investment will be negative, or that the expected event may be delayed or completed on terms other than those originally proposed, which may cause the Fund to lose money or fail to...

In this exclusive interview, Adam Butler provides a comprehensive exploration of diversified Carry strategies, a concept traditionally confined to institutional investors. He begins by defining Carry—the expected return on an investment if its price remains unchanged—and explains its mechanics across equities, bonds, currencies, and commodities. The discussion highlights how combining these various Carry sources offers powerful diversification benefits. Adam then connects this to the concept of Return Stacking, explaining how ETFs like Return Stacked® U.S. Stocks & Futures Yield (RSSY) and Return Stacked® Bonds & Futures Yield (RSBY) seek to broaden access to sophisticated strategies by incorporating them alongside traditional stock and bond allocations.

Topics Discussed

1. Defining Carry beyond the traditional currency trade to include yields from stocks, bonds, and commodities
2. The strategy of diversifying Carry across multiple global asset classes to create a smoother return profile
3. The mechanics of a long/short global Carry portfolio that maximizes risk-adjusted yield across markets
4. Carry's role as an uncorrelated diversifier to traditional stock and bond portfolios and its complementary relationship with Trend following
5. The concept of Return Stacking as a method to add diversifying strategies without selling core assets
6. Using Return Stacking to overcome behavioral biases like investor regret and the reluctance to diversify away from equities
7. The democratization of institutional strategies through ETFs like RSSY and RSBY, which stack Carry on core holdings
8. The operational complexity and data-intensive nature of Carry strategies, explaining their historical inaccessibility to retail investors
9. Setting long-term return expectations for Carry and viewing periods of underperformance as building potential energy
10. The argument for seeking returns in less efficient macro markets compared to the highly competitive micro world of stock picking

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. This and other important information about the Return Stacked® ETF lineup is contained in their respective prospectus', which can be obtained by calling 1-844-737-3001 or clicking here.

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.

ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a...