At a glance
MSTB charges 1.38% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $196.2M in assets, the 8th largest of that group; it paid 0.36% of its price in distributions over the past 12 months, annual. Over the past year it returned +7.6% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +20.8% a year. At its worst it fell 25.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 20 months after the low.
The short version
LHA Market State Tactical Beta ETF (MSTB) is an actively managed fund that holds mainly an S&P 500 ETF and Treasury bills. It uses a proprietary volatility signal to shift its stock market exposure, generally between about 80% and 120%. When the signal flags rising risk, it cuts stock exposure and buys hedges linked to the VIX volatility index. Its 1.38% expense ratio is well above the 0.79% to 0.95% charged by the buffer ETFs it is often grouped with.
Price history
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MSTB +7.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MSTB official prospectus, to Dec 31, 2025 | — | +18.26% | — | +9.25% | — | +10.70% |
| MSTB price data to Oct 27, 2026 | +10.2% | +7.6% | +20.8% | +7.9% | — | +9.0% |
- Over the year to Oct 27, 2026, MSTB returned +7.6%, 8th of 8 among similar funds.
- Its 5-year annualized return was +7.9%.
- Its worst full calendar year was 2022 (-22.7%); its best was 2024 (+18.8%).
- The deepest fall in its price history was 25.6% (Jan 3, 2022 to Sep 30, 2022), recovered by Jun 12, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.2% | — |
| 2025 | +18.6% | +18.26% |
| 2024 | +18.8% | +18.37% |
| 2023 | +16.9% | +16.73% |
| 2022 | -22.7% | -22.09% |
| 2021 | — | +22.25% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 25.5% over that stretch · deepest drop along the way 25.6%, back to its old high 20.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.1600 | -50.0% |
| 2024 | $0.3200 | +540.0% |
| 2023 | $0.0500 | -84.8% |
| 2022 | $0.3300 |
What's inside
As of Jun 30, 2026, the fund held 3 securities; the ten largest made up 91.79% of assets, and 6.86% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| State Street SPDR S&P 500 ETF Trust | 82.44% | |
| TREASURY BILL Bonds and notes | 6.26% | |
| TREASURY BILL Bonds and notes | 3.09% |
By country
United States 91.79%By asset type
Stocks 82.44%Bonds and notes 9.35%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $2.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.32%, +3.95%, -1.40%.
How it works
The fund starts each day with about 100% exposure to the S&P 500. Its managers then adjust that exposure using statistical analysis of the Cboe Volatility Index (VIX), a gauge of how much traders expect the S&P 500 to swing. Thompson Capital Management built the model, and Little Harbor Advisors, the adviser, holds an exclusive license to use it. The model compares 30-day and 90-day implied volatility indexes and VIX futures. When near-term fear runs above longer-term fear, the fund is in "hedge on" mode. It lowers its S&P 500 exposure and buys VIX-linked call options or ETFs, which tend to rise when stocks fall.
To get its market exposure, the fund can use S&P 500 ETFs (including leveraged ones), futures and options. It parks the rest in Treasuries and cash. As of June 30, 2026, it held 82.4% in State Street SPDR S&P 500 ETF Trust (SPY), 9.4% in two Treasury bills, 6.9% in cash, and a small S&P 500 E-mini futures position. The managers choose which instruments to use at their own discretion.
Sometimes the fund sells covered calls on its S&P 500 positions for extra income. That caps gains on the covered portion. Option premiums are generally under 2% of net assets per month. Futures add leverage, so losses can exceed the amount invested, and returns can differ sharply from the S&P 500.
What it really costs
- MSTB charges 1.38% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 1.1% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $140 in the first year and $1,657 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSTB | $140 | $437 | $755 | $1,657 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It relies on a costly, proprietary volatility model that has a short record and did not prevent a deep loss in 2022, so it fits best as a small position next to core holdings.
MSTB tries to stay close to S&P 500 returns while lowering risk when volatility rises. Its record shows the limits of that approach. The fund launched after the 2020 crash, so it has no record from 2008 or 2020. In the 2022 bear market it fell 25.6% between January 3 and September 30, 2022. It did not regain that peak until June 12, 2024, about 20 months after the low. Its worst calendar year was 2022, when it lost 22.09%. Anyone selling shares for living costs during that stretch would have been selling at a loss for well over a year. Income is small: a 0.36% trailing yield, paid once a year, as of October 27, 2026. Costs are high. In the SEC's standard $10,000 example, expenses total $140 after one year and $1,657 after 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 exposure with a rules-based volatility hedge and accept a 1.38% expense ratio for that approach.
- People comfortable with a strategy that relies on Thompson Capital's proprietary VIX signals and on options, futures and leveraged ETFs.
- Investors adding a small satellite position whose market exposure ranges from about 80% to 120%, rather than a fixed buffer.
Look elsewhere if
- Retirees who need regular income, since the trailing yield was 0.36% as of October 27, 2026, paid once a year.
- Investors who want a defined, stated downside buffer; MSTB has no buffer and fell 25.6% during 2022.
- Cost-focused investors: MSTB's 1.38% fee ranked last of eight among the buffer ETFs it is grouped with.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| MSTB this fund | 1.38% | $196.2M | +7.6% | +20.8% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is MSTB a buffer ETF like BUFR?
No. MSTB has no preset buffer or cap. It uses volatility signals to move its S&P 500 exposure up or down and adds VIX hedges when risk rises. FT Vest Laddered Buffer ETF (BUFR) uses defined-outcome options instead. As of October 27, 2026, MSTB returned 20.8% a year over three years versus 16.8% for BUFR. Over one year it trailed, 7.6% versus 11.6%. MSTB costs 1.38% a year, BUFR 0.95%.
Does MSTB pay dividends?
Yes, but not much, and only once a year. As of October 27, 2026, its trailing 12-month payout was about $0.16 per share, a yield of 0.36%. Most of the fund sits in an S&P 500 ETF and Treasury bills, so income is not its purpose. Any money from selling covered calls is usually taxed as ordinary income rather than as qualified dividends.
What is MSTB's expense ratio?
MSTB's expense ratio is 1.38%, according to its April 24, 2026 prospectus. That includes a 1.10% management fee. In the SEC's standard example ($10,000 invested, a 5% yearly return, and shares sold at the end), costs total $140 after one year, $437 after three, $755 after five, and $1,657 after 10. The buffer ETFs it is often compared with average 0.86%.
Did MSTB protect against the 2022 stock market drop?
Only partly at most. MSTB lost 22.09% in calendar 2022. Its worst quarter, down 17.45%, ended June 30, 2022. From January 3 to September 30, 2022, it fell 25.6%, and it did not recover until June 12, 2024. The volatility hedge is meant to soften declines, but 2022 shows it can still suffer losses on the scale of a stock fund.
How has MSTB performed since launch?
MSTB returned 18.26% for the year ending December 31, 2025. Its five-year average was 9.25% a year, and its average since its September 30, 2020 launch was 10.7% a year. Calendar-year results were 22.25% in 2021, -22.09% in 2022, 16.73% in 2023, 18.37% in 2024 and 18.26% in 2025. Its strongest quarter, up 14.69%, ended June 30, 2025.