Monarch Select Subsector ETF Fund

The Monarch Select Subsector Index ETF (MSSS) is a fund of funds. It holds 10 equally weighted U.S. sector and subsector ETFs, chosen by an index that uses employment trends to judge where the economy is in its cycle. Three things set it apart: the rotating approach, heavy bets on a few areas such as health care, and a high 1.42% expense ratio, according to its June 2026 prospectus.

• Over the year to Oct 27, 2026, MSSS returned +18.0%, 1st of 8 among similar funds.
• Its worst full calendar year was 2025 (+10.3%); its best was 2025 (+10.3%).
• The deepest fall in its price history was 19.1% (Nov 29, 2024 to Apr 8, 2025), recovered by Aug 13, 2025.

As of Aug 31, 2026, the fund held 10 securities; the ten largest made up 99.94% of assets.

• Over the three months to Aug 31, 2026, investors added a net $8.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.05%, -0.70%, +1.35%.

MSSS tracks the Monarch Select Subsector Index. The fund's adviser, Kingsview Wealth Management LLC, is also the index provider. Solactive, which is independent of the fund, calculates and publishes the index. The rules use employment trends to identify the phase of the economic cycle. They then pick the sectors and subsectors that have historically done well in that phase. Finally, they choose the ETFs expected to deliver the best risk-adjusted return, meaning return relative to how much the price swings.

The index holds 10 U.S.-listed ETFs in equal weights. The sub-adviser, Penserra Capital Management LLC, uses replication: it owns substantially all index constituents in about the same proportions. As of August 31, 2026, the holdings included an SPDR S&P software ETF (11.1%), iShares U.S. medical and health care ETFs, an SPDR S&P pharmaceuticals ETF, and funds covering communication services, leisure, insurance, semiconductors and aerospace. Each made up roughly 9% to 11% of assets.

Several of the subsector ETFs can come from the same sector. As of February 28, 2026, the index had over 25% in health care. The fund is passive, so it sells a holding only when the index drops it. Turnover was 127%, which can raise trading costs and taxes in taxable accounts. It used no leverage, options or derivatives as of August 31, 2026. The prospectus summary does not say how often the index rebalances.

• MSSS charges 1.42% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.85% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $145 in the first year and $1,702 over 10 years (assuming a 5% annual return).

It makes concentrated sector bets that rotate over time, at a high cost and with a short record, so it fits better as a small position beside a broad core fund than as the core itself.

MSSS launched in March 2024, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its deepest drop was 19.1%, from November 29, 2024 to April 8, 2025. It got back to its old high by August 13, 2025, about four months later. Its only full calendar year, 2025, returned 9.85%, well short of the S&P 500's 17.88%. A retiree who had to sell shares in spring 2025 would have sold near the low.

The fund pays very little income. Its trailing yield was 0.19% as of October 27, 2026, and it pays twice a year. Costs are high at 1.42% a year. In the SEC's standard $10,000 example, costs add up to $1,702 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.