Brookmont Catastrophic Bond ETF

Frequently Asked Questions About ILS

What does ILS invest in?

ILS is the first US-listed exchange-traded fund (ETF) to focus on catastrophe bonds. It offers investors exposure to a unique asset class, often uncorrelated with traditional markets, through an actively managed and globally diversified portfolio of these bonds. Catastrophe bonds, frequently called Cat bonds, are financial instruments designed to shift the monetary burden of natural disasters from insurance companies to capital market investors. This arrangement provides insurers with crucial additional protection, while offering investors the potential for attractive high-yield returns. The fund exclusively invests in high-yield rated Cat bonds, whose payouts are linked to specific natural disaster "trigger events." These bonds can be issued by a variety of entities, including domestic and international insurers, reinsurers, governments, and special purpose vehicles (SPVs). The fund operates with broad investment flexibility, placing no restrictions on the maturity of its securities, the specific types of natural catastrophes it covers, the geographic regions involved, or the economic or physical loss thresholds for its investments. Investment selection is based on a comprehensive assessment of both qualitative and quantitative factors, such as the nature of the peril, geographical exposure, payout triggers, the issuing entity, and the anticipated risk-adjusted return.

What is the expense ratio of ILS?

Brookmont Catastrophic Bond ETF (ILS) charges an expense ratio of 2.65%. This is the annual fee deducted from fund assets to cover management and operations.

What is ILS's dividend yield?

ILS's trailing-twelve-month yield is 8.01%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of ILS?

Effective duration measures ILS's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. ILS's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of ILS?

ILS's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of ILS?

Yield to maturity (YTM) is the total return you'd earn from ILS if every bond in the portfolio is held to maturity at the current price. ILS's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.