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3-20-2025  While ETFs can include short positions, risk management is crucial, especially avoiding highly shorted stocks. The Future Fund embraces transparency, sharing investment changes daily through social media.

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TRANSCRIPT

On the long, short side, are there any issues with shorting stocks in an ETF?

If you can short in a mutual fund, you can short an ETF, and we've had no issues shorting stocks in our ETF.

And the biggest challenge sometimes is you got to be careful. You don't want to short stocks with high short interest ratios. That's just a discipline to have because if you're wrong, meaning if the stock goes up, it can go up explosively. So we tend to avoid high short interest ratio stocks. But shorting stocks in an ETF is relatively easy as long as you stay away from heavily shorted names and you stick with liquid names.

So is it almost like being in a hedge fund without the fees or financial benefits and liquidity and transparency?

So, one of the benefits we offer to people is every night we post online what our positions are. And I'm on Twitter, I have about almost 500,000 followers, and people ask me all the time, wow, you guys sold this or you added to this. Can you tell me why? The transparency is a great marketing tool because when you make a change in the portfolio every night, people can see it. And people want to know why. They want to know why you sold this or why you added to a position, and you can tell them if you're on Twitter. So, I make a lot of use of Twitter as a communications tool to explain to people why we do certain things.

Learn more at futurefundetf.com or 312.825.1280

 

FFND prospectus        FFLS prospectus

IMPORTANT INFORMATION

Investing involves risk, including loss of principal.

Long/Short investing: A long/short strategy seeks to balance investments by holding long positions in stocks expected to do well and short positions in stocks expected to underperform. Long investing involves buying an asset, such as stocks, with the expectation that its price will increase over time. The investor holds the asset for an extended period to benefit from potential price appreciation and any dividends or interest it may generate. Shorting or short selling, involves borrowing shares of a stock and selling them at the current market price, with the expectaion that the price will decline. The investor plans to buy back the shares at a lower price to return them to the lender.

Investors should consider the investment objectives, risks, and charges and expenses of the Funds before investing. The prospectuses contain this and other information about the Funds and should be read carefully before investing. The prospectuses may also be obtained by calling 877.466.7090.

The Future Fund ETFs are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. The Future Fund LLC is the investment advisor to the Funds, and is not affiliated with Northern Lights Distributors, LLC.

Opinions expressed are attributable to the speakers and are as of the date of this interview in February 2025. The Future Fund LLC is an SEC-registered investment advisor and advisor to The Future Fund ETFs. 

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© 2025 The Future Fund LLC. All Rights Reserved

 

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