If You Invested in Eventide Large Cap Value ETF (ESLV)

Eventide Large Cap Value ETF (ESLV) is an exchange-traded fund sponsored and advised by Eventide Asset Management, LLC, a Boston-based investment adviser. ESLV is one of Eventide's systematic ETFs and is designed for investors seeking large-cap value exposure in the U.S. equity market while incorporating Eventide's faith-based investment approach.

The fund's stated benchmark is the Bloomberg US 1000 Value Total Return Index. According to Eventide, this index is a float market-cap weighted benchmark made up of companies within the Bloomberg US 1000 Index that have the highest value factor scores based on metrics such as earnings yield, valuation, dividend yield, and growth. ESLV is not an index fund, and Eventide is not required to purchase any specific securities or any amount of securities included in the benchmark.

Investment approach and Business 360® framework

Eventide describes ESLV as part of its systematic ETF lineup, which seeks to combine elements of a passive investment style with an active strategy. The firm applies its proprietary Business 360® methodology to filter the investment universe. This framework evaluates both a company's long-term competitive advantage and its impact on human flourishing, through an assessment of the products the company offers and its business practices.

Companies that meet Eventide's standards for what it considers good products and practices form a distilled investable universe. From this refined set of securities, Eventide uses quantitative risk modeling and testing in an effort to construct a portfolio that aligns with benchmark factors such as beta (market sensitivity), style, and sector characteristics, while remaining consistent with its values-based criteria.

Faith-based and values-driven focus

Eventide states that its systematic ETFs, including ESLV, are managed with an uncompromising adherence to faith-based values. The Business 360® process is presented as a way to integrate data and human discernment into investment decisions, with the goal of evaluating both value creation and value extraction by companies. Eventide notes that its values-based approach may not produce desired results and could lead to underperformance compared to other investments.

Role within Eventide's ETF lineup

ESLV was launched alongside the Eventide Large Cap Growth ETF (ESLG) and the Eventide Small Cap ETF (ESSC) as part of an expansion of Eventide's systematic ETF offerings. These funds follow the same general framework of screening for companies that fit Eventide's Business 360® standards and then applying quantitative portfolio construction techniques. ESLV specifically focuses on the large-cap value segment of the U.S. equity market as defined by its benchmark.

Eventide emphasizes that investing in securities involves risk, including the possible loss of principal, and that there is no guarantee any investment strategy will achieve its objective, generate profits, or avoid losses. The firm also highlights that the ETFs, including ESLV, are new and have a limited history of operation for investors to evaluate.

Key structural characteristics

ESLV trades on NYSE Arca under the ticker symbol ESLV. Eventide Asset Management, LLC serves as the investment adviser to the ETF, and Foreside Fund Services, LLC is identified as the distributor of the Eventide ETFs. Eventide notes that Foreside is a separate entity and not affiliated with Eventide.

Because ESLV is part of a systematic strategy, the portfolio construction process is described as relying on quantitative risk modeling and testing, but always limited to securities that pass Eventide's Business 360® values and business-practice screens. The fund seeks risk and returns that track its benchmark's factors while remaining distinct from a traditional index fund due to its active selection process.

Risk considerations and disclosures

Eventide underscores that investors should consider the investment objectives, risks, charges, and expenses of ESLV carefully before investing, and that a prospectus, summary prospectus, and statement of additional information are available for more details. The firm also notes that references to its Business 360® approach are provided for illustrative purposes and indicate a general framework of guiding principles for its research process.