https://www.sec.gov/Archives/edgar/data/1860434/000119312523191398/d505828d497.htm
497 1 d505828d497.htm HARBOR SMALL CAP EXPLORER ETF PROSPECTUS SUPPLEMENT
 
 
Harbor ETF Trust
 
Supplement to Prospectus dated April 6, 2023
Harbor Small Cap Explorer ETF
July 21, 2023
Harbor ETF Trust’s Board of Trustees has determined to liquidate and dissolve Harbor Small Cap Explorer ETF (the “Fund”). After the close of business on August 22, 2023, subject to applicable law, the Fund will no longer accept creation orders. Trading in the Fund will be halted prior to market open on August 23, 2023. The Fund is currently scheduled to liquidate at the close of business on or about August 30, 2023 (the “Liquidation Date”).
Shareholders may sell their holdings of the Fund on NYSE Arca, Inc. (“NYSE Arca”) until market close on August 22, 2023 and may incur typical transaction fees from their broker-dealers. At the time the liquidation of the Fund is complete, shares of the Fund will be redeemed. If you still hold shares on the Liquidation Date, you will receive a liquidating distribution of cash in the cash portion of your brokerage account equal to the amount of the net asset value of your shares. Shareholders who receive a liquidating distribution generally will recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares if shares are held in a taxable account. The liquidating distribution received by a shareholder, if any, may be in an amount that is greater or less than the amount a shareholder might receive if they dispose of their shares on NYSE Arca prior to market close on August 22, 2023. The Fund may or may not, depending upon its circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments. Please consult your personal tax advisor about the potential tax consequences.
In order to ready the Fund for liquidation, the Fund’s portfolio of investments will be transitioned prior to the planned Liquidation Date to one that consists of all or substantially all cash, cash equivalents and debt securities with remaining maturities of less than one year. As a result, shareholders should no longer expect that the Fund will seek to achieve its investment objective of seeking long-term growth of capital. Furthermore, during the time between market close on August 22, 2023 and the Liquidation Date, shareholders will be unable to dispose of their shares on NYSE Arca.
The changes to the Fund’s investment policy that were previously disclosed to shareholders in a notice dated June 6, 2023 will no longer be implemented.

https://www.sec.gov/Archives/edgar/data/1587982/000139834423013352/fp0084562-2_497.htm
497 1 fp0084562-2_497.htm
AXS 1.5X PYPL Bull Daily ETF
Ticker: PYPT
AXS Brendan Wood TopGun Index ETF
Ticker: TGN
Each a series of Investment Managers Series Trust II (the “Trust”)
Supplement dated July 21, 2023 to each currently effective
Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”).
The Board of Trustees of the Trust has approved a Plan of Liquidation for each of the AXS Brendan Wood TopGun Index ETF and the AXS 1.5X PYPL Bull Daily ETF (each, a “Fund”). Each Plan of Liquidation authorizes the termination, liquidation and dissolution of the respective Fund.
Each Fund will create and redeem creation units through August 11, 2023 (the “Closing Date”), which will also be the last day of trading on The NASDAQ Stock Market LLC, with respect to the AXS 1.5X PYPL Bull Daily ETF, and on NYSE Arca, Inc., with respect to the AXS Brendan Wood TopGun Index ETF, each Fund’s principal U.S. listing exchange. On or about August 18, 2023 (the “Liquidation Date”), each Fund will cease operations, liquidate its assets, and prepare to distribute proceeds to shareholders of record as of the Liquidation Date. Shareholders of record on the Liquidation Date will receive cash at the net asset value of their shares as of such date. While Fund shareholders remaining on the Liquidation Date will not incur transaction fees, any liquidation proceeds paid to a shareholder should generally be treated as received in exchange for shares and will therefore generally give rise to a capital gain or loss depending on the shareholder’s tax basis. Shareholders (including but not limited to shareholders holding shares through tax-deferred accounts) should contact their tax advisers to discuss the income tax consequences of the liquidation. Under certain circumstances, liquidation proceeds may be subject to withholding taxes.
In anticipation of the liquidation of each Fund, AXS Investments LLC, the Funds’ advisor, may manage each Fund in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of each Fund may not be invested in a manner consistent with its stated investment strategies, which may prevent each Fund from achieving its investment objective. Shareholders of each Fund may sell their holdings on The NASDAQ Stock Market LLC, with respect to the AXS 1.5X PYPL Bull Daily ETF, and the NYSE Arca, Inc., with respect to the AXS Brendan Wood TopGun Index ETF, on or prior to the Closing Date. Customary brokerage charges may apply to such transactions. After the Closing Date, we cannot assure you that there will be a market for your shares.
Please contact the Funds at 1-303-623-2577 if you have any questions or need assistance.
Please file this Supplement with your records.

https://www.sec.gov/Archives/edgar/data/1587982/000139834423013353/fp0084562-1_497.htm
497 1 fp0084562-1_497.htm
AXS Thomson Reuters Private Equity Return Tracker Fund
Class A Shares: LDPAX
Class C Shares: LDPCX
Class I Shares: LDPIX
A series of Investment Managers Series Trust II (the “Trust”)
Supplement dated July 21, 2023 to the
Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”),
each dated February 1, 2023.
The Board of Trustees of the Trust has approved a Plan of Liquidation for the AXS Thomson Reuters Private Equity Return Tracker Fund (the “Fund”). The Plan of Liquidation authorizes the termination, liquidation and dissolution of the Fund. In order to perform such liquidation, effective immediately the Fund is closed to all new investment.
The Fund will be liquidated on or about August 18, 2023 (the “Liquidation Date”), and shareholders may redeem their shares until the Liquidation Date. Redemptions made on or after the date of this Supplement will not be subject to any redemption fee that would otherwise be applicable. On or promptly after the Liquidation Date, the Fund will make a liquidating distribution to its remaining shareholders equal to each shareholder’s proportionate interest in the net assets of the Fund, in complete redemption and cancellation of the Fund’s shares held by the shareholder, and the Fund will be dissolved. Any liquidation proceeds paid to a shareholder should generally be treated as received in exchange for shares and will therefore generally give rise to a capital gain or loss depending on the shareholder’s tax basis. Shareholders (including but not limited to shareholders holding shares through tax-deferred accounts) should contact their tax advisers to discuss the income tax consequences of the liquidation. Under certain circumstances, liquidation proceeds may be subject to withholding taxes.
In anticipation of the liquidation of the Fund, AXS Investments LLC, the Fund’s advisor, may manage the Fund in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategies, which may prevent the Fund from achieving its investment objective.
Please contact the Fund at 1-833-297-2587 if you have any questions or need assistance.
Please file this Supplement with your records.

Through 2022, we increased "defensive" allocation including utility, consumer staples and health care (all ETFs). They are a hedge against a bad case of recession. so far, healthcare held up the best and utility lags the other two ETFs. I do not consider these stock ETFs are substitutes for bonds since they are different animals.
GLOFX is in our radar, but we need to sell something to make room for this fund.

If you are at Fidelity you can step up to the institutional class for their standard fee, and save yourself .25 on the ER. It makes a big difference since a lot of the return comes from cap gains and dividends.

Hank is right in drawing a distinction between the years up to the mid 90s and the time since then. Though I would say that the key difference between then and now is regulation.
Utilities were heavily regulated, vertically integrated companies. Electric utility companies combined power generation with transmission and distribution. Ma Bell designed its own equipment (Bell Labs) and manufactured it (Western Electric) under the 1956 consent decree.
Under regulation, utility companies were granted monopolies and guaranteed a fair rate of return. They were cash cows, very much like bonds with steady payments.

[Through the early 1990s] most public utilities were regulated monopolies. They were guaranteed a fair rate of return, based on their capital investment and costs. ...
in the old days of regulation, a utility like Con Ed would be required to regularly submit a resource plan to a state's public service commission. The two organizations would forecast demand and decide how much money should be invested in power plants and transmission lines. Rates would be adjusted to cover costs. Under deregulation, however, nobody plays that crucial planning role.

https://www.nytimes.com/2003/08/16/opinion/the-day-the-lights-went-out-an-industry-trapped-by-a-theory.html

I kinda disagree with you when you say it is not a game...if this market isn't the world's largest casino, not sure what it is. The market is NOT a utility. It does not care that someone "needs" 8% a year return to fund their retirement. It's use is to raise capital to grow companies. NOT to provide anyone with a secure retirement.
Dictionary. Game. Definition. a form of play or sport, especially a competitive one played according to rules and decided by skill, strength, or luck
Many "play" the markets....some have more skill/resources than others....for sure it is competitive...someone is always on the other side of the trade...sure...lot of luck involved at times....

Yes, in one sense you are Spot-On @Baseball_Fan. :) A matter of perspective. When the wind’s blowing hard out to R / L / center field (as now) anyone can be a “star”. But the winds are not always so favorable.
As it may concern another member … Be very careful about dishing out investment advice to individuals. While advice comes cheap, their hard earned money did not. When push comes to shove its their money and their ass hanging out there - not yours.

As posted nearby, the AAII Sentiment Bull-Bear spread is at 2.25-yr high.
I am starting to scale my tactical-asset-allocation (TAA) back to normal - for me, 40-60% effective-equity. My TAA had become too high from purchases during 2020-2022.
The idea is hold/buy when Sentiment is VERY negative, sell some when Sentiment is TOO positive.
Personally, no hedging or shorting. Been there, tried that in my working years, but I don't do that now. I do have margin accounts but I don't use margin now.
BTW, low VIX and high SKEW indicate lots of institutional hedging. It's like many institutional bulls are just dancing near the exits. Now, retail investors seem to be joining the party.

"It’s about being able to stay near fully invested - even at an advanced age - and doing better than you would if parked 100% in cash (or cash-like investments)"
You are now going to the other extreme of only cash. There is a lot going on between 0% to 100% stocks. Your goal is to stay invested, my goal is different.
Let's explore several questions
1) How comfortable are you with JHQAX? The following question is the most revealing, what % are you going to invest in JHQAX for the next 20 years? I have more confidence investing in 50/50 PRWCX/VWIAX for many retirees that it meets their goals. In fact, I don't even trust PRWCX, because I don't know how long Giroux will be in charge. This is why my wife has instructions to invest in 3 funds if I'm gone, 2 indexes and VWIAX because I can trust them for decades.
2) You made a good observation, DODBX lost 33% in 2008. But why stop there, stocks+bonds lost over 15% at the bottom of 2022, and many lost over 10% by year-end. In 03/2020, many bond funds lost 10% and stocks over 30% at the bottom. Are you going to get rid of all of them?
3) You made another good point "the various approaches attempted by funds are unpredictable "
Bingo. and why I research it for many years. I talked to many people, especially investors who have enough, and most told me they don't want to ever lose more than 10% from any last top, but they still want their portfolio to make a decent return. They must give up either performance or lower risk.
So, just my opinion, good timing/trading is the only choice IF you can do it. Timing doesn't have to be all or none, you can trade 20-30-50%. BTW, I'm almost sure that Fred was probably in high % in MM for months, just like I did in 2022. When markets don't make sense, I'm out. I don't trust any funds/managers and I don't believe in relative performance, only absolute. If 50/50 PRWCX/VWIAX lost about 10-11% in 2022, it doesn't comfort me compared to -18% for SPY. I don't tolerate this decline.
Another subject we must discuss is how much you have in retirement and let's assume no pension. Smaller portfolios must be at a higher % in stocks to survive. WTF portfolio can be in 20/80 to 80/20. The biggest problem is in the middle.

I like your sense of humor Hank...but in all seriousness, I kinda disagree with you when you say it is not a game...if this market isn't the world's largest casino, not sure what it is. The market is NOT a utility. It does not care that someone "needs" 8% a year return to fund their retirement. It's use is to raise capital to grow companies. NOT to provide anyone with a secure retirement.
Dictionary. Game. Definition. a form of play or sport, especially a competitive one played according to rules and decided by skill, strength, or luck
Many "play" the markets....some have more skill/resources than others....for sure it is competitive...someone is always on the other side of the trade...sure...lot of luck involved at times....

Buffer Fund
A well-known bit of derivatives magic — a great, simple party trick that derivatives structurers can use to impress their friends — is that if you give me $100 today, I can invest $91 of it in two-year Treasury notes paying 4.75% interest, and in two years I will have $100. And I can invest the other $9 in two-year at-the-money call options on the S&P 500 stock index, options that gain value if the S&P goes up over those two years. Those options cost, let’s say, 13% of the price of the S&P today, so spending $9 on options will get me an option on about $70 worth of the index. And so I can offer you the following trade:
• You give me $100 today.
• In two years, I give you back (1) $100, no matter what, plus (2) 70% of the return on the S&P 500 index, if it’s up.
If stocks go up, you get the gains (well, 70% of them). If stocks go down, you don’t get the losses. What a great trade!
And because I can do this efficiently in size, and because I thought of it and you didn’t, and because I advertised it to you with a cool brochure, I can charge you like 1% of your money for putting this trade together. It is a very good trade, honestly. If you are a sophisticated investor you can quibble with it, but at a simple intuitive level it is just nice. “You get [much of] the upside of stocks, but no downside” is a clean and satisfying pitch. The shape of the payoff graph is pleasing.
Bloomberg’s Vildana Hajric and Emily Graffeo report:

The pioneer of the world’s first “buffer ETFs” — exchange-traded funds that are supposed to limit losses during market selloffs — has launched a new product which it says offers investors complete downside protection.
Investors in the $7.5 trillion ETF universe can now put money behind the Innovator Equity Defined Protection ETF, which began trading under the ticker TJUL on Tuesday. The offering comes from Innovator Capital Management, which launched the first so-called buffer ETFs, also sometimes referred to as defined-outcome funds, in 2018.
Buffer funds, as the name suggests, offer buffered exposure to stocks by limiting investors’ downside risk while also capping upside potential. …
Yet, Innovator says that its TJUL fund — which will track S&P 500 returns up to a capped percentage over a two-year period — will be the first of its kind to protect against 100% of stock losses. TJUL’s cap on potential gains is estimated at about 15% after fees.
Specifically, the fund will invest at least 80% of its net assets in options on the $423 billion SPDR S&P 500 ETF Trust (ticker SPY), according to the fund’s prospectus. TJUL can purchase and sell a combination of call and put options in an effort to cushion against market volatility.
The outcomes set by the fund may only be realized by investors who continuously hold shares of TJUL from the first day of the “outcome period” — July 18 — to the end of the two-year period, which is June 30, 2025, reads the prospectus.

They give you 100% of the gains up to the cap, rather than 70% of uncapped gains, but same basic idea.
There is a reason that this product is the first of its kind: If interest rates are zero, I can’t invest $91 in Treasuries to get back $100, so I don’t have $9 to spend on options to get S&P 500 upside. (I have to put, like, $99 in Treasuries, and the only way to get you any meaningful upside is by giving you some downside risk too.) But as interest rates have gone up, products like this look better, and so people are offering them.
Of course as interest rates have gone up, products like this are in some sense less attractive: Putting up $100 and getting back $100 in two years is worse if I missed out on 4.75% interest than it would be if interest rates were zero. But that’s not the point! The point is that a trade like “I will give you some stock upside and take 75% of the downside between down 5% and down 20% blah blah blah” is annoying and complicated, while “I will give you the upside of stocks and you can’t lose any money” is nice and simple and intuitively attractive. “Buffer fund” is complicated, “stock fund but you can’t lose money” has an obvious appeal.

I have spent years looking for hedging, and shorting funds, starting with AQR. I could not find any consistent fund that can do it. A fund can work for several years and then stop working for other years.
My conclusion is that the only thing that works, especially for retirees who have enough is to go to MM in high-risk markets and back to invest when markets are "normal. Sure, it's called timing. Timing doesn't have to be perfect, just good, just like investing isn't. All you got to do is come up with a system and try, if it does not work then stop.
Here is another point that many miss. Missing the worst days is better than missing the best days.
https://www.barrons.com/articles/timing-the-market-pays-off-buy-and-hold-51588186928
So here’s the full truth, according to data from Ned Davis Research. From 1979 to mid-April of 2020, the S&P 500 Total Return Index gained 11.23% per annum. Sure, if you missed the best 40 days, returns shrunk to 5.21%. How about if you missed the worst 40 days? Nobody ever talks about that, because you’d be accused of market timing. Guess what? Your returns would soar to 18.83% annually. And importantly, if you missed both the best and the worst 40 days, you actually beat the market at 12.39%.
FD: and more importantly, the portfolio risk-adjusted return is much better too.
Read the following
https://www.cambriainvestments.com/wp-content/uploads/2018/01/Where-the-Black-Swans-Hide-the-10-Best-Days-Myth.pdf
Conclusions:
1. The stock market historically has gone up about two-thirds of the time.
2. All of the stock market return occurs when the market is already uptrending.
3. The volatility is much higher when the market is declining.
4. Most of the best and worst days occur when the market is already declining because markets are much riskier than models assuming normal distributions predict.
5. The reason markets are more volatile when declining is because investors use a different part of their brain making money than when losing money.

"...Plus, I’ve found that if I don’t see myself adding to funds I hold, why bother holding them at all."
Yes, gotcha. In my case, it seems well worth the time to let divs. and cap. gains accumulate, even if I'm not adding--- because that fund, whichever it is--- has reached sufficient size in the portfolio. PRWCX.

JHQAX sounds good in theory. SPY suffered about 20% fall in Q4/2018 + lost over 30% in 03/2020 and over 20% in 2022....but SPY made almost twice as much as JHQAX.
Chart (https://schrts.co/mEAddMPX)

Update, 7/18/23
Thanks for all the well wishes and prayers for recovery.
Current Score: YBB 1, Pneumonia 0.
I just completed a 5-day course of a strong antibiotics. It didn’t do much for 3 days – that was disheartening at one point. But then, things improved dramatically. Full recovery will take time. I would have to be cautious about a relapse. I will also think about where and how I caught a sudden pneumonia that literally knocked me out – almost.
I had all the pneumonia shots PPSV-23, Prevnar-13. Now they have a combo/single vaccine, and at some point, I may have that too – this current infection should cause natural immunity for a good while.
Thanks to Capital at Big Bang, @ceciljk at MFO, @eceprof at M* for posting information at those discussion boards.

Added to ATT preferred C shares for l/t qualified income on this week's swoon over the lead cables story. (I trust it more than the common.)
Also srsly considering adding to my moderate sized position in VZ on the recent swoon, too.

I'm seriously underwater with T. At this point, there's an opportunity cost as it flounders and the market charges higher. As I have gains to offset, I'll wait until it grinds a bit higher by year end or the market corrects presenting further opportunity for a tax loss swap.

@rforno,
I posted some news about this fund some time ago, then there was no activity concerning it until I just discovered this filing.
edited:
Found this from September 2017:
https://www.mutualfundobserver.com/discuss/discussion/35185/t-rowe-price-capital-appreciation-income-fund-summary-prospectus
Here is a 2017 Citywire article about the fund:
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjqqOqWh5eAAxVhFlkFHaGACSI4FBAWegQICRAB&url=https://citywire.com/pro-buyer/news/t-rowe-to-launch-income-driven-version-of-28bn-capital-appreciation-fund/a1032209&usg=AOvVaw3iS3mcWRUB3frl3u8hnHjW&opi=89978449

https://www.sec.gov/Archives/edgar/data/793347/000174177323002322/c485apos.htm
Portfolio Managers:
David R. Giroux
Farris G. Shuggi
The filing is dated October 1.
Bloomberg has a symbol listed:TCIFX
https://www.bloomberg.com/quote/TCIFX:US#xj4y7vzkg
This 2017 filing listed the fund symbols at that time:
https://www.sec.gov/Archives/edgar/data/1689311/000168931117000021/canpta-may35.htm

My TD migration date is many months away. TD said if I want to move sooner, I have to go through the account transfer portal (ACAT) and that it could take up to one week.

I setup a Schwab account and moved 95% of my stuff over back in summer 2020 and it went rather smoothly ... I didn't want to go thru *another* brokerage account mass migration. I need to check if my $15 OEF fee conveyed, but if it didn't, when they finally get around to moving my TD account, I will be sure to confirm the $15 OEF fee is included. (Thx for the reminder)

Thanks, @racqueteer for confirming the carryover of the legacy TD fees schedule. Since I already have a Schwab account and login credentials, I do not need to do anything to allow them to migrate my TD accounts. They have already mapped my Schwab and TD accounts using my credentials. If I currently have 3 TD accounts and 2 Schwab accounts, after migration, I will have five accounts at Schwab and will be able to access all of them with my legacy Schwab log-in credentials. If I want to consolidate the accounts to fewer accounts, that is on me. I will need to make sure my legacy TD fees schedule carries over to the migrated TD accounts.
I wonder if the legacy TD fees schedule is automatically applied to the legacy Schwab accounts or if we need to do something like may be ask Schwab for it or even transfer assets from the legacy Schwab account positions to the newly migrated accounts. I know Schwab is not required to match the legacy TD fees for the legacy Schwab accounts and they may make me jump mini hoops like ask for it or transfer assets.
@rforno, I would check your Schwab accounts now to see if you had been given the $15 OEF fees. If not given, I would ask Schwab to code your Schwab accounts for it. If Schwab does not agree, then you may have to follow the process I mentioned above. Even after the migration, every time you create a new account at Schwab, you not only have to ask them to code the new account to have the same privileges as the other accounts but also make sure the Rep actually does it; otherwise, default fees schedules could apply to the new account.

My TD migration date is many months away. TD said if I want to move sooner, I have to go through the account transfer portal (ACAT) and that it could take up to one week.

I setup a Schwab account and moved 95% of my stuff over back in summer 2020 and it went rather smoothly ... I didn't want to go thru *another* brokerage account mass migration. I need to check if my $15 OEF fee conveyed, but if it didn't, when they finally get around to moving my TD account, I will be sure to confirm the $15 OEF fee is included. (Thx for the reminder)

PRWCX is NOT closed. I purchased TRAIX which is the institutional form of prwcx last week at Firstrade which has a minimum of $ 100. to purchase. Sorry ,but not a myth! If you have an account with them you would have to look it up in your account. It is also NTF.

Thank you for confirming not only that Firstrade says that one can buy TRAIX (which I have verified via a defunct account at Firstrade), but that one can actually buy shares there (which I can't test out).

By the way I have owned PRWCX in another account for at least a decade but will hang on to it , so I do not have to pay the capital gains if I sold it at this time. Will just keep adding to the new TRAIX position.

Have you looked into the possibility of transferring those shares in kind to Firstrade and having them execute a nontaxable conversion into the cheaper TRAIX shares?