Drawing from quarterly commentary, Rodrigo Gordillo and Corey Hoffstein review the performance and positioning of the Return Stacked® suite of ETFs. They explore the drivers behind their trend following strategies, explaining the whipsaw experienced in certain markets and the strong performance in others like metals and equities. The discussion also provides a detailed case study on the challenges faced by multi-asset carry (futures yield) strategies, the opportunistic nature of their merger arbitrage approach, and the mechanics of the gold and Bitcoin overlay. This episode offers a comprehensive look at how these distinct strategies navigated the recent market environment.

Topics Discussed

1. An overview of the Return Stacked® ETF suite's growth, having surpassed $1 billion in assets
2. The utility of the RSSB global stocks and bonds ETF as a versatile tool for capital efficiency and creating portfolio overlays
3. A detailed breakdown of the trend-following replication strategy, which combines top-down and bottom-up models to track a managed futures index
4. Analysis of the challenging market environment for trend following, marked by policy-driven whipsaws and unexpected economic news
5. An in-depth case study on the multi-asset carry strategy's underperformance, using crude oil to explain the impact of rapid shifts in market expectations
6. Positioning the merger arbitrage strategy (RSBA) as an attractive, uncorrelated alternative to traditional credit investments
7. The dynamic, risk-parity approach to the gold and Bitcoin overlay in the RSSX ETF for hedging against inflation and currency debasement risk
8. Discussion on the nature of diversification, emphasizing that it implies zero correlation, not necessarily negative correlation, between assets

RSSX does not invest directly in Bitcoin or Gold.Exposures to gold and bitcoin will be done via exchange traded funds and futures contracts, hence the fund does not invest directly in bitcoin or any other digital asset, and does not invest directly in gold or gold bullion.

For prospectus and performance and risks visit the fund pages.

1. RSST – https://www.returnstackedetfs.com/rsst-return-stacked-us-stocks-managed-futures/
2. RSBT – https://www.returnstackedetfs.com/rsbt-return-stacked-bonds-managed-futures/
3. RSSY –

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...