TRIO ETF

Built on Trust. Designed for Growth. Engineered for Stability.

At McCarthy & Cox, we’ve spent decades helping investors protect and grow their wealth with a disciplined, conservative approach. Founded in 1999 in Marysville, Ohio, we built our reputation by focusing on consistent, risk-managed returns—hitting singles and doubles, avoiding strikeouts, and never swinging for the fences.

For years, we’ve used structured investments to help our clients capture market upside while protecting against downside risk. These strategies worked, but they were often limited to private offerings or complex structures. We knew there had to be a better way—a way to bring this strategy to more investors in a more efficient, accessible format.

That’s why we created The Trio ETF.

A Smarter Approach to Investing

We started by using structured products that provided exposure to single indices with downside protection. While these worked well, we wanted a more diversified, cost-effective, and liquid solution.

As Exchange-Traded Funds (ETFs) gained popularity, we saw an opportunity to improve how we managed risk and exposure. But there was one problem: existing ETFs only tracked single indices and lacked the multi-index balance we had refined over years of working with investors.

So, rather than settle for a product that didn’t fully meet our needs, we built the solution ourselves—an ETF designed to deliver the same carefully balanced exposure, now available to all investors.

Bringing Our Strategy to Every Investor

The Trio ETF is the evolution of a proven, time-tested approach—now available to the broader investing public. Whether you’re an individual investor, financial advisor, or institution, this ETF provides a unique solution for managing risk while staying positioned for growth.

Because smart investing isn’t about taking wild swings. It’s about precision, patience, and protecting what matters.

At inception, the MC Trio Equity Buffered ETF is designed to provide a balanced and risk-managed approach to equity investing, with the following strategic allocation: 70% U.S. large-cap equities; 15% U.S. small-cap equities;15% international developed markets equities

Exposure is obtained via option contracts on underlying indices, and structured such that there is a 10% downside buffer, net of fees, against market declines over a one-year period. The one-year outcome period is structured to align with index appreciation over the period, allowing investors to participate in equity market growth while maintaining a disciplined risk management framework.

On a monthly basis, the fund’s allocations, remaining caps, buffers, and time to maturity are evaluated. If, at any point, it is deemed advantageous to adjust positions, the Fund may roll all or part of its options contracts out for another period. Exposures may also be adjusted to capitalize on opportunities.

Additionally, market inefficiencies often create pricing imbalances in call and put options due to investor sentiment and behavioral biases. When such opportunities arise, the Fund may seek to capitalize on these mispricings to enhance returns. Should no adjustments occur, the options will be rolled into new, one-year terms, at maturity.

Unlike passive defined-outcome strategies, this is an actively managed fund, designed to provide a dynamically managed investment experience rather than a rigid, pre-determined outcome.

Overview

• Actively managed buffered ETF using Flexible Exchange (FLEX) options.
• Provides exposure to U.S. large-cap, small-cap, and international developed markets.
• Incorporates a downside buffer (e.g., 10%) to reduce exposure to market losses.
• Establishes an upside cap to limit returns in exchange for downside protection.
• Portfolio allocations are determined based on macroeconomic indicators such as GDP growth, employment, earnings estimates, and valuations.
• Investment exposure to underlying ETFs is reviewed monthly with rebalancing as needed.

Key Selling Points

• Downside Risk Management: At inception, offers a predefined level of protection against market downturns.
• Diversified Equity Exposure: Combines U.S. large-cap, small-cap, and international equity markets. TRIO is currently the only product in the marketplace that does this.
• Actively Managed Structure: Adapts to market conditions rather than following a static rule-based methodology.
• Simplicity: With over 400 structured product ETFs in the marketplace, determining the right choice can be overwhelming. TRIO is a one-ticker solution.

Although the ticker is new, McCarthy & Cox has been successfully implementing Buffered Products strategies for private clients for years.