Tidal Trust Files With SEC for 2 New ‘Animal Spirits' ETFs
In a Tuesday filing to the Securities and Exchange Commission, Tidal Trust requested to list the VistaShares Animal Spirits Strategy ETF (ANIM), an actively managed ETF seeking capital appreciation by investing in companies that are the primary focus of the largest and fastest-growing single-stock leveraged ETFs.
The firm also requested to list the VistaShares Animal Spirits Daily 2X Strategy ETF (WILD), which seeks daily investment results that correspond to two times the daily performance of an actively managed group of 'animal spirits' securities.
The securities in both funds will be selected by sub-adviser VistaShares Advisors and based on the BITA VistaShares Animal Spirits Index.
Tidal and VistaShares were not able to comment directly on the filing due to regulatory restrictions. But Gavin Filmore, chief revenue officer at Tidal Financial Group, told etf.com that there is massive opportunity in and around the leveraged ETF space right now and that the firm is seeing a rapid rate of innovation from its partners and the broader market.
The more than 280 leveraged ETFs in the U.S. market have garnered $105.5 billion total assets under management.
'Managing these products is complex,' Filmore said. 'Issuers need to ensure they have the right specialized and experienced partners in place.'
Leveraged synthetic exchange-traded funds can amplify returns, but not without risk. Investors should not treat leveraged synthetic ETFs as passive long-term holdings, as they might with traditional ETFs, Rob Kane, director of alternative investments on the Investment Management and Research team at Commonwealth Financial Network, told etf.com.
'A common misconception is that these ETFs simply double or triple the performance over an investor's holding period,' Kane said, speaking of these types of ETFs in general and not a specific fund. In reality, he added, they are designed to replicate a leveraged daily return before fees and expenses of a specified security or index.
'Since performance is only guaranteed on a daily basis, the effect of compounding can introduce significant performance dispersion relative to the underlying reference asset over time,' Kane added. 'Such dispersion and potential performance decay can be exacerbated in volatile markets with frequent price fluctuations.'Permalink | © Copyright 2025 etf.com. All rights reserved
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Akre Capital Seeks $12.2B Mutual Fund to ETF Conversion
The investment fund space is poised to see another mutual fund-to-ETF conversion—a growing trend as more asset managers look to take advantage of the structural benefits of funds that trade more like stocks. On Thursday, Akre Capital Management announced that it had proposed the conversion of its Akre Focus Fund to the actively managed Akre Focus ETF (AKRE). If approved by shareholders, the conversion is expected to take place in the fall of 2025, according to a press release. The AKRE Focus fund, which was launched in 2009 and has approximately $12.2 billion in net assets as of May 31, seeks to achieve long-term capital appreciation by selecting companies based on factors related to their business, management and reinvestment. The proposed conversion is expected to provide shareholders with enhanced tax efficiency, increased transparency and lower costs, according to the press release. The fund's prospectus shows that the current expense ratios range from 0.98% to 1.32% depending on share class and that the ETF's proposed unitary fee is 0.98%. In March, Akre Capital applied for an exemption that would allow its mutual fund to offer an ETF share class, but it is no longer pursuing that option. 'In our effort to deliver the significant benefits of the ETF structure to our mutual fund shareholders, we evaluated three options: launching a standalone ETF (clone), converting the mutual fund to an ETF and introducing an ETF share class within the mutual fund,' John Neff, CEO and CIO at Akre Capital explained to in an emailed statement. The firm determined that converting the mutual fund to an ETF would be in the best interest of its shareholders. 'This conversion represents an upgrade to a superior structure,' Neff added. 'In contrast, launching a standalone ETF would offer no benefit to existing shareholders, while introducing an ETF share class could create unnecessary confusion for investors and platforms.' Akre isn't alone in trying to take advantage of the tax advantages, lower expense ratios and intraday tradability ETFs have over their mutual fund counterparts. CFRA Research reports that last year, mutual funds (excluding money market funds) experienced $579 billion worth of net outflows, while $1.1 trillion moved into ETFs. Just last month, the world's largest asset manager, BlackRock, filed with the Securities and Exchange Commission to convert the BlackRock GA Disciplined Volatility Equity Fund (BIDVX) and BlackRock GA Dynamic Equity Fund (BIEEX) to | © Copyright 2025 All rights reserved
The Hill
13 hours ago
- The Hill
US markets need accountability — it would be a mistake to dismantle Sarbanes-Oxley
Recently, the House Financial Services Committee approved a proposal to dissolve the Public Company Accounting Oversight Board, which supervises audits of publicly listed companies, and transfer its responsibilities to the Securities and Exchange Commission. In times of economic uncertainty, the strength and integrity of our financial systems become even more crucial. Regardless of the outcome with the board, it would be a mistake to eliminate the broader Sarbanes-Oxley framework that has served as a foundation for market integrity since 2002. Dismantling these guardrails would increase the risk of financial reporting fraud that could trigger a crisis of confidence among investors and increased market volatility, putting trillions of dollars in market value and retirement savings at risk. The bipartisan Sarbanes-Oxley Act was enacted in 2002 in the wake of a number of accounting scandals, most prominently Enron and WorldCom, which wiped out billions in market value and retirement savings. It passed with overwhelming support in both houses, reflecting the urgency lawmakers felt to address the crisis threatening our capital markets. At its core, Sarbanes-Oxley established crucial guardrails. Section 404 requires companies to maintain robust internal controls over financial reporting, while Section 302 mandates that CEOs and CFOs personally certify the accuracy of financial statements. These provisions ensure that those who lead corporations are accountable for the integrity of their financial disclosures. Sarbanes-Oxley also established independent oversight of auditors responsible for verifying financial statements. This provided essential third-party assurance that investors could trust what companies report — a crucial element in rebuilding market confidence. Critics of Sarbanes-Oxley complain that compliance costs are a burden on businesses. While initial implementation was indeed expensive, companies have since learned to leverage technology and risk-based approaches to streamline the process. Research from firms like Protiviti and AuditBoard consistently shows that these costs have decreased over time as processes have become more efficient. More importantly, we must weigh these costs against the benefits. The data is compelling: financial restatements, which initially surged after Sarbanes-Oxley implementation as companies 'cleaned up' their books, have shown a sustained downward trend. According to the Center for Audit Quality, restatements rose sharply right after the law was enacted, to nearly 1,800 in 2006, but have generally trended downward overall since — with a substantial decline of 60 percent between 2006 and 2009. Restatements dropped 50 percent, from 858 restatements in 2013 to just 402 in 2022, XBRL reported. America's capital markets remain the envy of the world precisely because investors trust them. Foreign companies willingly subject themselves to our rigorous standards because the resulting investor confidence translates into better valuations and capital access. This trust premium has contributed to trillions in market value growth over the past two decades. As this regulatory reorganization is considered, we should ensure that any structural changes don't inadvertently weaken the broader framework of Sarbanes-Oxley that delivers accountability, transparency and investor protection. Instead, continued refinement of implementation and embracing technological innovations can make compliance more efficient without sacrificing effectiveness. The goal is evolution, not revolution. Twenty-three years after its passage, Sarbanes-Oxley has become an integral part of America's financial architecture, contributing to a period of remarkable growth and stability in our capital markets. The political right and left came together to enact this landmark legislation because they recognized a fundamental truth: without trustworthy financial reporting, markets cannot function effectively. Today, that core principle remains unchanged. While organizational structures may evolve, preserving the integrity of Sarbanes-Oxley's core principles isn't just good for investors — it's essential for America's continued economic leadership. Richard Chambers worked in auditing in the U.S. Government Accountability Office. He is currently CEO of Richard F. Chambers and Associates and senior adviser at AuditBoard.
Associated Press
19 hours ago
- Associated Press
ABM Reports Fiscal Second Quarter 2025 Results
NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for fiscal second quarter ended April 30, 2025. 'ABM's second quarter performance was highlighted by a return to organic revenue growth in our Business & Industry ('B&I') segment, driven by improving conditions in our prime commercial office markets,' said Scott Salmirs, President & Chief Executive Officer. 'We are also encouraged by the growth in our Manufacturing & Distribution ('M&D') segment, driven by new business wins. We achieved 3.8% organic revenue growth, despite some unfavorable timing on certain projects in Technical Solutions ('ATS'). Additionally, we secured $1.1 billion in new bookings through the first half of the year, an 11% increase year over year, underscoring the strength of our market position, our focus on innovation, and our essential role as a resilient, non-discretionary service provider. We also produced significant sequential improvement in cash flow as we made important strides in deploying our enterprise resource planning ('ERP') system across the B&I and M&D segments.' Looking ahead to the second half of 2025, Mr. Salmirs added, 'We remain constructive on the outlook for our core markets, particularly high-quality office buildings, manufacturing and distribution facilities, commercial aviation, and microgrids. Further, projects delayed in the second quarter are expected to be realized in the third quarter.' Disclosure Update After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. As a result, our adjusted financial measures in the second quarter of 2024 now include unfavorable prior year self-insurance adjustments of $4.3 million, or $0.05 per diluted share, which are recorded as corporate costs. The definitional change had no impact on second quarter 2025 results. (1) When the company provides expectations for adjusted EPS and adjusted EBITDA margin on a forward-looking basis, a reconciliation of the differences between these non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See 'Outlook' and 'Use of Non-GAAP Financial Information' below for additional information. Second Quarter Fiscal 2025 Results Revenue increased 4.6% over the prior year period to $2.1 billion. This growth was driven by 3.8% organic growth and a 0.8% contribution from acquisitions. ATS and Aviation led the way, with revenue increasing 19% and 9%, respectively. ATS benefited from significantly higher microgrid revenue. B&I grew 3% supported by continued recovery in the U.S prime office space market. M&D was up 2%, reflecting both new client wins and favorable comparisons to the prior year. Education delivered growth of 1%. Net income for the quarter was $42.2 million, or $0.67 per diluted share, compared to $43.8 million, or $0.69 per diluted share, in the prior year period. The year over year change largely reflects higher interest expense and higher transformation and integration costs, offset in part by increased segment earnings. Net income margin was 2.0% versus 2.2% in the prior year. Adjusted net income grew to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share, last year. The year over year growth was primarily driven by higher segment earnings and lower corporate costs, partially offset by higher interest expense. Adjusted EBITDA for the period increased to $125.9 million and adjusted EBITDA margin was 6.2% versus $121.0 million and 6.2%, respectively, in the prior year. Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Net cash provided by operating activities was $32.3 million, and free cash flow was $15.2 million, compared to $117.0 million and $101.4 million, respectively in the prior year. These results primarily reflect continued elevated working capital tied to the ongoing transition to the Company's new ERP system. Sequentially, cash flow from operations increased by $138.5 million compared to the previous quarter, highlighting progress reducing the operational friction associated with the ERP conversion. A reconciliation of net cash provided by operating activities to free cash flow can be found in the 'Reconciliation of Non-GAAP Financial Measures' table. Liquidity, Capital Structure & Share Repurchases At the end of the second quarter, the Company's total indebtedness stood at $1.6 billion, including $29.7 million in standby letters of credit, resulting in a total leverage ratio of 2.9X, as defined by the Company's credit facility. The Company had available liquidity of $657.8 million, including $58.7 million in cash and cash equivalents. Quarterly Cash Dividend After the quarter's close, the Company's Board of Directors declared a cash dividend of $0.265 per common share, payable on August 4, 2025, to shareholders of record on July 3, 2025. This marks the Company's 237th consecutive quarterly cash dividend. Outlook The Company is reaffirming its outlook for fiscal year 2025 adjusted EPS to be in the range of $3.65 to $3.80. The projected full year adjusted EBITDA margin also remains unchanged at 6.3% to 6.5%. This outlook does not give effect to any potential positive or negative prior year self-insurance adjustments. The Company cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for adjusted EPS in 2025 without unreasonable effort, as we believe a GAAP range would be too large and variable to be meaningful due to the uncertainty of the amount and timing of any gains or losses related to, but not limited to, items such as adjustments to contingent consideration, acquisition and integration related costs, legal costs and other settlements, as well as transformation initiative costs. Conference Call Information ABM will host its quarterly conference call for all interested parties on Friday, June 6, 2025, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the 'Investors' section of the Company's website, located at or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time. A supplemental presentation will accompany the webcast on the Company's website. A replay will be available approximately three hours after the webcast through June 20, 2025, and can be accessed by dialing (844) 512-2921 and then entering ID #13753708. A replay link of the webcast will also be archived on the ABM website for 90 days. About ABM ABM (NYSE: ABM) is one of the world's largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience. ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together. For more information, visit Cautionary Statement under the Private Securities Litigation Reform Act of 1995 This press release contains both historical and forward-looking statements about ABM Industries Incorporated ('ABM') and its subsidiaries (collectively referred to as 'ABM,' 'we,' 'us,' 'our,' or the 'Company'). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'likely,' 'may,' 'outlook,' 'plan,' 'predict,' 'should,' 'target,' or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning ('ERP') and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM's risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. Use of Non-GAAP Financial Information To supplement ABM's consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and six months of fiscal years 2025 and 2024. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM's operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and six months of fiscal years 2025 and 2024. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue excluding management reimbursement. We cannot provide a reconciliation of forward-looking non-GAAP adjusted EBITDA margin measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.) We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31. *Not meaningful (due to variance greater than or equal to +/-100%) *Not meaningful (due to variance greater than or equal to +/-100%) (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. (b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures—including adjusted net income, adjusted earnings per share, adjusted EBITDA, and adjusted EBITDA margin—to no longer exclude the positive or negative impact of 'prior year self-insurance adjustments'. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers' compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our second quarter 2025 results and retroactively to all presented periods to ensure comparability. Of note, the definitional change had no impact in second quarter 2025 results. (c) Represents acquisition and integration related costs associated with recent acquisitions. (d) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives. (e) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years. (f) The Company's tax impact is calculated using the federal and state statutory rate of 28.11% for FY2025 and FY2024. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding. (g) Six months ended April 30 2025 and 2024 include a $0.1 million and a $0.3 million benefit for uncertain tax positions with expiring statues, respectively.
