Before making any investment decisions, it is crucial to carefully consider the investment objectives, potential risk factors, fees, and expenses associated with the Funds. Comprehensive details regarding these aspects can be found in the Fund’s Prospectus and Summary Prospectus. We strongly encourage you to access these documents at https://etf.millervaluefunds.com/mvpa or https://etf.millervaluefunds.com/mvpl and read them thoroughly before investing in Miller Value Partners funds.
Miller Value Funds are distributed by Quasar Distributors, LLC.
Key Considerations for Investors in Miller Value Funds ETFs
Investing in financial markets always carries inherent risks, and investing in Miller Value Partners ETFs is no exception. It’s important for potential investors to understand these risks, which include the possible loss of the principal amount invested.
One key aspect to note is that the performance of the Fund may not precisely mirror or achieve a high level of correlation with the return of its benchmark index. This can occur due to various factors inherent in active fund management and market fluctuations.
Concentration Risk
Miller Value Partners ETFs may concentrate their investments in specific issuers, industries, or asset classes. This focus can lead to heightened vulnerability to negative events affecting those particular areas. Should these sectors experience downturns, the Fund’s value could be disproportionately impacted compared to more diversified investment vehicles. Events specific to a particular company, such as changes in its financial health, can also negatively affect the Fund’s overall value.
Risks Associated with New or Smaller Funds
Newer or smaller funds, like some from Miller Value Partners, carry specific risks. Their past performance may not accurately predict their long-term performance. Furthermore, limited operating history makes it challenging for investors to fully assess their potential. These funds might also struggle to attract sufficient assets, which can hinder investment and trading efficiency.
Market Price vs. Net Asset Value (NAV)
Shares of Miller Value Partners ETFs are traded on exchanges at market prices, which may differ from the Net Asset Value (NAV) per share. Investors buy and sell shares at these market prices, which are typically the closing price. It’s important to understand that ETF shares are not individually redeemable directly from the Fund itself. The market price returns quoted are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time, when NAV is usually determined. Trading at different times may result in different returns. Additionally, brokerage commissions will reduce overall investment returns. Miller Value Partners ETFs are actively managed, meaning they are traded like publicly held stocks, requiring investor awareness of market dynamics.
Understanding the S&P 500 Index
The S&P 500 Index is mentioned as a benchmark. It is a market capitalization-weighted index representing 500 widely held common stocks, often used to gauge the performance of the broader US stock market. It’s crucial to remember that investors cannot directly invest in an index. Furthermore, unmanaged index returns do not include any fees, expenses, or sales charges, which are relevant factors when considering fund investments.
Basis Point Explained
In financial contexts, you might encounter the term “basis point” (bps). It’s a unit of measure equal to one hundredth of one percent (0.01%). Understanding basis points is helpful when evaluating fees, expenses, or changes in interest rates associated with investments like Miller Value Partners Funds.
The Role of Diversification
Diversification is often discussed as a risk management strategy. While Miller Value Partners may employ diversification strategies, it’s essential to understand that diversification cannot guarantee profit or completely protect against losses, especially in a declining market.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
