QUSA: Bringing Monthly Income to Quality Factor Investing

Factor-based ETFs are a well-established tool for modern portfolio construction—used by institutional and individual investors alike to tilt toward attributes like value, momentum, or low volatility. But what if one ETF could combine a quality factor tilt with a strategy to target 15% annual income, paid monthly?

That’s the thinking behind the VistaShares Target 15™ USA Quality Income ETF (QUSA), our latest ETF. QUSA is designed to align U.S. equity exposure with strong balance sheets—and strong cash flow.

Why QUSA Now?

As of early 2025, factor-based ETFs—often referred to as smart beta—represent over $2.76 trillion in assets under management globally.^[1] Among these, the quality factor stands out for its focus on financial strength, earnings consistency, and low leverage—traits that have historically helped companies weather volatility and outperform over full cycles.^[2]

QUSA builds on that appeal, targeting U.S.-listed companies that score well on key quality metrics, while layering on an actively managed options overlay that seeks to generate 15% annual income. That combination is rare—and potentially powerful for investors seeking cash flow without sacrificing core equity exposure.

What’s Inside QUSA?

At its foundation, QUSA draws from a rules-based quality factor model developed by BITA, a leading independent provider of quantitative risk models. The fund’s equity portfolio focuses exclusively on U.S. companies, selected for:

• Profitability (e.g., return on equity, EBITDA margins)
• Stable earnings (low variability in year-over-year EPS growth)
• Low leverage (debt-to-assets and other balance sheet strength indicators)

Source: VistaShares, based on the composition as of 6/06/2025.
Holdings are subject to change.

The Income Overlay: Targeting 15%

QUSA’s second layer is the Target 15™ income strategy—an actively managed options overlay designed to deliver approximately 1.25% income per month, annualized to 15%. This is achieved by writing out-of-the-money covered calls on portfolio holdings. In flat or choppy markets, those calls typically expire worthless, allowing the fund to keep the premium and distribute it as income.

The tradeoff? QUSA may cap upside in sharp rallies—but in return, it seeks to offers investors a predictable income stream even when broader markets stall.

How QUSA Fits in a Portfolio

QUSA may appeal to:

• Income-focused investors (retirees, income models, yield seekers)
• Advisors looking to enhance core U.S. equity exposure with cash flow
• Investors worried about bond market volatility but still seeking yield

Unlike traditional dividend ETFs, QUSA’s income comes not from stock payouts but from option premiums—potentially offering greater consistency and less sensitivity to rate changes.

Quality with an Income Overlay

QUSA is the first ETF to pair a quality factor model with a high-income overlay—a rare combination that may resonate with income-minded investors who still want exposure to high-quality U.S. companies.

To learn more about QUSA’s construction, current holdings, and monthly distributions, visit the QUSA Fund Page.

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[1] “Investors have more choice – but are the offers any good?” Financial Times, February 25, 2025.

[2] “A Guide to Factor ETFs,” ETF.com, August 1, 2024.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 875-2288 or visit www.VistaShares.com. Read the prospectus or summary prospectus carefully before investing.

Investments involve risk, including the loss of principal.

Foreside Fund Services, LLC, distributor.

VistaShares Target 15™ USA Quality Income ETF (QUSA)

Index / Strategy Risks. The Index’s holdings are derived from publicly available data, which may be delayed relative to the then current portfolio of Berkshire Hathaway. Consequently, the Fund’s holdings, which are based on the Index, may not accurately reflect Berkshire Hathaway’s most recent publicly disclosed investment positions and may deviate substantially from its actual current portfolio. The equity securities represented in the Index are subject to a range of risks, including, but not limited to, fluctuations in market conditions, increased competition, and evolving regulatory environments, all of which could adversely affect their performance.

Focused Portfolio Risk. The Fund will hold a relatively focused portfolio that may contain exposure to the securities of fewer issuers than the portfolios of other ETFs. Holding a relatively concentrated portfolio may increase the risk that the value of the Fund could go down because of the poor performance of one or a few investments.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value.

U.S. Government and U.S. Agency Obligations Risk. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

Newer Sub-Adviser Risk. VistaShares is a recently formed entity and has limited experience with managing an exchange-traded fund, which may limit the Sub-Adviser’s effectiveness.

Cash Flow.The net amount of cash and cash equivalents moving into and out of a business over a period of time. It reflects the company’s ability to generate cash to fund operations, pay debt, and invest.
EBITDA. (Earnings Before Interest, Taxes, Depreciation, and Amortization) A measure of a company’s profitability that excludes non-operating expenses and non-cash charges
ROE (Return on Equity). A measure of financial performance that shows how much profit a company generates with shareholders’ equity.
Out of the Money (OTM). A term used in options trading to describe a position that currently has no intrinsic value.