Absolute Select Value ETF

Absolute Select Value ETF (ABEQ) is an actively managed fund run by subadviser St. James Investment Company. It holds a small group of value stocks and can move money into Treasuries and cash when it finds too few bargains. It aims for positive returns across full market cycles rather than beating an index. It held just 20 positions as of June 30, 2026, and its 0.85% expense ratio is well above the 0.34% average of similar funds.

• Over the year to Oct 27, 2026, ABEQ returned +12.9%, 3rd of 7 among similar funds.
• Its 5-year annualized return was +8.8%.
• In the 2020 COVID crash it fell 27.7% and regained its old high 8.3 months after the low.
• Its worst full calendar year was 2022 (-1.0%); its best was 2025 (+15.3%).
• The deepest fall in its price history was 27.8% (Feb 11, 2020 to Mar 23, 2020), recovered by Dec 1, 2020.

As of Jun 30, 2026, the fund held 20 securities; the ten largest made up 67.55% of assets.

• Over the three months to Jun 30, 2026, investors added a net $1.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.03%, -1.75%, +1.06%.

ABEQ does not track an index. Its subadviser, St. James Investment Company, LLC, studies one company at a time. It looks for businesses it believes trade at a large discount to its own estimate of fair value, and it uses a five-stage process to decide what to buy and sell. The aim is an "absolute return": positive results over full market cycles, after fees, rather than beating a benchmark. The fund can own companies of any size or sector. That includes foreign firms held through American Depositary Receipts (ADRs), which are U.S.-traded certificates that stand for foreign shares.

Because the manager starts from individual companies, not sector targets, the fund can end up heavy in some industries. It is also non-diversified, which means it can put more of its money into fewer companies. As of June 30, 2026, it held 20 positions, with about 68% in the top 10. Berkshire Hathaway was the largest at 10.6%, followed by Loews (7.7%), Franco-Nevada (6.6%) and Unilever (6.4%).

When bargains are scarce, the manager can move part or nearly all of the fund into cash, money market funds or short-term Treasuries. As of June 30, 2026, about 18% sat in a Treasury bill due November 2026 and a zero-coupon Treasury strip due February 2027. The fund may also hold other funds instead of cash. That adds a second layer of fees.

• ABEQ charges 0.85% a year, versus an average of 0.34% for the similar funds below (7th of 7, cheapest first).
• The fee includes a 0.21% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $87 in the first year and $1,275 over 10 years (assuming a 5% annual return).

A concentrated value portfolio with a Treasury cushion that has moved only loosely with the S&P 500, but it is too narrow and costly to anchor a portfolio.

ABEQ launched in January 2020, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 27.7%, the largest drop in its history, and took about 8 months to recover. In the 2022 bear market it fell 17.3% from April to September and needed about 17 months to regain its peak. Even so, it ended calendar 2022 down just 0.96%, its weakest year. Its Treasury holdings did not prevent sharp short-term losses. That matters for anyone who may need to cash out shares during a slump.

Income is modest. The trailing 12-month yield was 1.15% as of October 27, 2026, and the fund pays twice a year. At 0.85% a year, costs are high. In the SEC's standard example, which assumes $10,000 invested and 5% yearly returns, costs would total about $87 in the first year and $1,275 over 10 years. Past results don't predict future ones, and a plan needs to look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).