ECML
The Euclidean Fundamental Value ETF
WHY INVEST IN ECML? FUND DETAILS as of Sept. 30, 2024
Ticker ECML
Machine learning based models trained to identify
Type Quantitative Equity ETF
deep value stocks and avoid value-traps.
CUSIP 02072L466
Informed by data, ECML’s process is systematic, Primary Exchange NYSE Arca
removing costly human behavioral bias. Inception Date May 17, 2023
Expense Ratio 0.95%
An investment process rooted in extensive research
Fund AUM $183 Million
and investment experience.
Number of Holdings 68
A concentrated portfolio of inexpensive stocks with Weighted Avg. Market Cap. $16 Billion
high active share. Median Market Cap. $6.4 Billion
Active Share (S&P 500) 95%
POR TFOLIO FUN DAMENTA LS as of Sept. 30, 2024 FUND METHODOLOGY
Leveraging over a decade of research in the
Compared to the S&P 5001, ECML is less than application of machine learning to long-term equity
half as expensive, has a higher return on investing, Euclidean Technologies has trained a
capital, and has substantially less leverage. proprietary set of models – implemented as deep
neural networks – to perform two tasks (1) estimate
the intrinsic value of companies to find inexpensive
Metric ECML S&P 500 S&P 500 Value6
stocks and (2) identify inexpensive stocks that are
EV/EBIT2 8.2x 20x 15.4x
likely to underperform so they can be avoided.
Price/Book3 1.9x 5x 2.9x Euclidean uses these models to systematically
ROC4 17.6% 12.8% 9.8% construct and manage a concentrated portfolio of
Debt/Equity5 0.5 1.2 1.3
undervalued U.S. stocks. Details on the systematic
process used to drive the investment strategy and
Source data for portfolio fundamentals are from Standard & Poor’s COMPUSTAT data set and
the metric values are calculated by Euclidean Technologies Management, LLC. Index returns are references to the research behind it can be found in
for illustrative purposes only and do not reflect any management fees, transaction costs or
expenses. Indexes are unmanaged and one cannot invest directly in an index. the summary and statutory prospectus of the fund.
GROWTH OF $10,000 I NVESTED MA Y 17, 2023 FUND PERFORMANCE as of Sept. 30, 2024
14,000 Since
Type 1 Month 3 Month 6 Month 1 Year
13,500
Inception
MKT 0.57% 7.61% -0.61% 23.14% 26.38%
13,000
NAV 0.56% 7.54% -0.59% 23.20% 26.36%
12,500
12,000 Returns are average annualized total returns, except those for periods of
less than one year, which are cumulative. The performance data quoted
11,500 represents past performance and does not guarantee future results.
Investment return and principal value of an investment will fluctuate so
11,000 that an investor’s shares, when sold or redeemed, may be worth more or
less than their original cost. Current performance may be lower or higher
10,500
than the performance quoted. Performance would have been lower
without fee waivers in effect For performance data current to the most
10,000
recent month end, please call 215.882.9983 or visit euclideanetf.com.
Market price returns are based upon the closing composite market price
9,500
and do not represent the returns you would receive if you traded shares
5/17/23
6/1/23
6/16/23
7/1/23
7/16/23
7/31/23
8/15/23
8/30/23
9/14/23
9/29/23
10/14/23
10/29/23
11/13/23
11/28/23
12/13/23
12/28/23
1/12/24
1/27/24
2/11/24
2/26/24
3/12/24
3/27/24
4/11/24
4/26/24
5/11/24
5/26/24
6/10/24
6/25/24
7/10/24
7/25/24
8/9/24
8/24/24
9/8/24
9/23/24
at other time. NAV is the sum of all its assets less any liabilities, divided
by the number of shares outstanding. Holdings are subject to change.
ECML S&P 500 S&P 500 Value
The line graph represents the cumulative performance of a hypothetical $10,000 investment. The
returns are net of the ETF's expenses but do not reflect the payment of any brokerage
commissions or brokerage costs incurred as a result of buying or selling fund shares and do not
reflect the deduction of taxes to which an investor would be subject as a result of owning or
selling shares of the fund. If they did, the returns would be lower than those shown. Fund price
performance returns are average annualized total returns, except those for periods of less than
one year, which are cumulative.
Financial professionals and institutional investors should contact Euclidean Technologies Management, LLC at [email protected] | euclideanetf.com
ECML
The Euclidean Fundamental Value ETF
DISCLOSURES
1. S&P 500: An unmanaged index of 500 common stocks primarily traded on the New York Stock Exchange, weighted by market capitalization. Index performance
includes the reinvestment of dividends and capital gains.
2. EV/EBIT: A valuation ratio between Enterprise Value (total value of a company’s operations attributable to all stakeholders) and Earnings Before Interest and Taxes,
which is calculated as revenue minus expenses excluding tax and interest.
3. Price/Book: The Price-to-Book Ratio measures the market's valuation of a company relative to its book value. It's calculated by dividing the company's current stock
price per share by its book value per share.
4. ROC: Return on Capital is calculated by dividing net operating income before taxes and interest by book value of equity.
5. Debt/Equity: The Debt-to-Equity Ratio is calculated by dividing a company’s total debt by its shareholder equity. It is a measure of the degree to which a company is
financing its operations with debt rather than its own resources.
6. S&P 500 Value: An index of stocks drawn from the S&P 500 index weighted toward fundamental measures of value including the ratios of book value, earnings, and
sales to price.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with
this and other information about the Fund, please visit our website at euclideanetf.com. Read the prospectus or summary prospectus carefully before
investing.
Investments involve risk. Principal loss is possible. Shares of the ETF may be bought or sold throughout the day at their market price on the exchange on which they
are listed. The market price of an ETF’s shares may be at, above or below the ETF’s net asset value (“NAV”) and will fluctuate with changes in the NAV as well as supply
and demand in the market for the shares. Shares of the ETF may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units.
There can be no guarantee that an active trading market for the Fund’s shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying
or selling the Fund’s shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly
from investment returns.
Equity Securities Risk – Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. Growth
Investing Risk – The risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing
company’s growth potential. Value Style Risk – Value investing involves the risk that an investment made in undervalued securities may not appreciate in value as
anticipated or remain undervalued for long periods of time. Small- Mid-Capitalization Risk – Investments made in small to mid-capitalization companies are subject to
greater risks than large company stocks due to limited resources and inventory as well as more sensitive to adverse conditions. New Fund Risk – The Fund is a recently
organized, giving prospective investors a limited track record on which to base their investment decision. Active Management Risk – The Fund is actively managed and
may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund. High Portfolio Turnover Risk – The
Fund’s investment strategy is expected to result in a higher portfolio turnover rate, which may increase the Fund’s brokerage commission costs, and thus could negatively
impact the performance of the Fund.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security,
strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be
reproduced in any form, or referred to in any other publication, without express written permission. References to other funds should not be interpreted as an offer of these
securities. The Euclidean Fundamental Value ETF is distributed by Quasar Distributors, LLC. The Fund investment advisor is Empowered Funds, LLC, which is doing
business as Alpha Architect, and the Fund Sub-Advisor is Euclidean Technologies Management, LLC.
Euclidean Technologies Management, LLC
701 5th Avenue, Suite 4200
Seattle, WA 98104
www.EuclideanETF.com
Euclidean Technologies
Founder & CIO
John Alberg
Financial professionals and institutional investors should contact Euclidean Technologies Management, LLC at [email protected] | euclideanetf.com
