FolioBeyond Enhanced Fixed Income Premium ETF (FIXP US) – Portfolio Construction Methodology

The investment approach informing the actively managed FolioBeyond Enhanced Fixed Income Premium ETF combines a factor-based multi-sector fixed income model with option overlays to enhance income while seeking long-term capital appreciation. The investable universe includes income-producing fixed income securities and underlying ETFs spanning government, corporate, mortgage and other securitized sectors, emphasizing liquid instruments to support capacity and execution. Eligibility and investability rely on market liquidity, indexability and optionability for overlay implementation. Security selection and sector tilts follow the FolioBeyond fixed income model, which evaluates valuation, carry, momentum and risk characteristics across sectors and curve segments. Portfolio construction blends core multi-sector exposures with option premium strategies implemented on fixed income ETFs or indexes; collateral and cash management support overlay margin and liquidity. Rebalancing adjusts sector weights, duration and credit risk bands as model signals change; overlay positions are rolled on a defined schedule or closed when risk thresholds or valuation targets are reached.

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