Tidal Trust III NAACP MINORITY EMPOWERMENT ETF

The NAACP Minority Empowerment ETF (NACP), from Tidal, tracks the Morningstar Minority Empowerment Index. The index holds about 200 large and mid-sized US companies, scored on how well they support minorities using social criteria compiled by the NAACP. It costs 0.49% a year, against an average of about 0.10% for similar funds. That makes it the most expensive of nine comparable funds, and with about $76 million in assets as of June 30, 2026, the smallest.

• Over the year to Oct 27, 2026, NACP returned +22.8%, 1st of 9 among similar funds.
• Its 5-year annualized return was +14.3%.
• In the 2020 COVID crash it fell 31% and regained its old high 3.9 months after the low.
• Its worst full calendar year was 2022 (-23.1%); its best was 2019 (+30.7%).
• The deepest fall in its price history was 31% (Feb 20, 2020 to Mar 23, 2020), recovered by Jul 20, 2020.

As of Jun 30, 2026, the fund held 202 securities; the ten largest made up 40.87% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $52K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +12.96%, +9.01%, +2.12%.

NACP is an index fund. It tries to match the Morningstar Minority Empowerment Index before fees, not beat it. The index starts from the Morningstar US Large-Mid Cap Index, which covers about 90% of the US stock market's value. Sustainalytics, the fund's ESG (environmental, social and governance) research provider, scores each company on its minority empowerment practices, products and services, using criteria compiled by the NAACP. Some companies are excluded. These include companies that earn more than 5% of revenue from predatory lending or tobacco, make riot control weapons, run prisons or provide security services, mainly produce oil, gas or coal, break UN Global Compact principles, or face serious controversies.

Morningstar then uses an optimization process to choose about 200 companies and set their weights. It leans toward higher-scoring companies while keeping risk and return close to the parent index. No company can be more than 5% of the index. Weights are adjusted every quarter, and the list of stocks is rebuilt once a year. Between holdings reports, prices can push a position past the cap: Micron Technology was 5.7% of the fund as of June 30, 2026.

The fund keeps at least 80% of its assets in index stocks. It may own a representative sample instead of every stock, so its returns can differ from the index. As of June 30, 2026, it held 202 stocks, almost all of them US companies. Technology made up 37.8%, and the ten largest positions made up 40.9%.

• NACP charges 0.49% a year, versus an average of 0.1% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).

It holds about 200 large and mid-sized US companies and is built to behave like the broad US large- and mid-cap market, with a minority-empowerment screen added.

NACP can serve as a broad US stock holding for investors who want this screen, but it has swung more than the market. Its one-year beta was 1.21 as of October 27, 2026. Beta measures how much a fund moves when the market moves, and a figure above 1 means bigger swings. In the 2020 COVID crash, NACP fell 31% and recovered in about four months. In the 2022 bear market, it dropped 27.9% and took about 15 months to recover, finally doing so in January 2024. Its worst calendar year was 2022, a loss of 22.23%. The fund launched in 2018, so it has no record from 2008. Anyone who had to sell in 2022 would have sold at a loss. It pays little income: a 0.54% yield as of October 27, 2026, paid twice a year. In the SEC's standard example, costs on $10,000 add up to $616 over ten years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.