FFLS

1. Summary

• FFLS is an actively managed, net-long equity ETF. It buys companies it sees as winners from long-term "themes" (technology, consumer and other trends) and shorts, or buys puts on, companies it sees as losers.
• It runs well below 1.0x gross. On November 9, 2026 it was 60.07% long and 26.56% short: 86.63% gross and 33.51% net. Net exposure has drifted down from about 65% to 75% in 2023 and 2024 (read from the fact sheet chart).
• It shorts directly through a broker-dealer, posts collateral and a "margin deposit" there, and holds extra cover in a segregated account at its custodian, Brown Brothers Harriman. The broker and margin type are not named.
• Most relevant for us: FFLS gives no precedent for leverage above 1.0x. Its useful lessons are on cost and policy. Short interest and dividends cost 0.81% of average net assets in fiscal 2026, outside the 1.24% expense cap. A fundamental policy bars it from buying securities on margin.

2. Key facts

Other trading data, as of November 9, 2026: 30-day median bid/ask spread 0.3017% (FFLS-FS, page 5). Days at a premium in Q4 2026 to date: 18; at a discount: 4 (FFLS-FS, pages 10 and 11, "Premium/Discount").

3. Service providers

Other: Northern Lights Compliance Services, LLC provides the trust's Chief Compliance Officer (FFLS-SAI, page 58, "Compliance Services"). Vedder Price P.C. is trust counsel (FFLS-SAI, page 59, "Legal Counsel").

4. Strategy

• Objective and benchmark. "to seek to provide capital appreciation" (FFLS-PR, page 3, "Investment Objective"). The objective is non-fundamental (FFLS-PR, page 11, "Investment Objective"). The prospectus compares returns with the S&P 500 Total Return Index (FFLS-PR, page 9, "Performance").
• Universe. At least 80% of assets in long and short positions in U.S. exchange-listed stocks and ADRs (American Depositary Receipts, U.S.-traded shares of foreign companies). At least 65% in companies above $2 billion market cap. Foreign listings, including emerging markets, are allowed (FFLS-PR, page 3, "Principal Investment Strategies"). On November 9, 2026 the top 10 lists included three foreign ADRs or listings: Embraer, Safran and ASML (FFLS-FS, pages 6 to 8).
• How it picks stocks. Fundamental and thematic. Longs are "thematic winners" with "reasonable valuations." Shorts are "thematic losers" or companies with "a combination of weakening fundamentals and excessive valuation" (FFLS-PR, page 4, "Principal Investment Strategies"). The fact sheet adds "Vigorous proprietary research, both fundamental and on-the-ground" and risk managed "both fundamentally and quantitatively" (FFLS-FS, page 4).
• Neutrality targets. None. "The Fund will be managed with a net long exposure bias" but "has the ability to have net short exposure" (FFLS-PR, page 4). Shorts are also used "for hedging purposes" (FFLS-PR, page 4).
• Net exposure. No set range. "The Fund's net long exposure may exceed 100% of the Fund's net assets", and shorts "may be reduced significantly or eliminated temporarily" (FFLS-PR, page 4).
• Limits on position size. No strategy limit is stated. The fund is diversified: 75% of total assets must meet the 5% of assets and 10% of voting shares tests. It may not put 25% or more of assets in one industry (FFLS-SAI, page 3, "The Trust"; FFLS-SAI, page 41, "Fundamental Investment Limitations"). The largest stock positions on November 9, 2026 were Edwards Lifesciences at 3.89% long and Ares Capital at -2.63% short (FFLS-FS, pages 6 and 7).
• Turnover. The prospectus expects "low to moderate portfolio turnover" (FFLS-PR, page 4). Actual turnover was 313% in fiscal 2025 and 283% in fiscal 2026 (FFLS-PR, page 27, "Financial Highlights"). These conflict.

5. Exposure and leverage

• Measured exposure, November 9, 2026 (FFLS-FS, page 10, "Portfolio Market Exposure"):
  • Long 60.07%, short -26.56%, gross 86.63%, net 33.51%.
  • The figures disregard "all options, cash, sweeps, and receivables" and "Figures do not include delta-adjusted values of options." So any put options are left out.
  • The footnote labels look swapped: it says net is long "plus" short and gross is long "minus" short. With shorts shown as negative numbers, the stated results (33.51% net, 86.63% gross) are correct (my arithmetic).
• History. The net exposure chart runs from July 28, 2023. It shows net exposure of about 65% to 75% in 2023 and mid-2024, falling to about 20% to 40% through 2025 and 2026 (read from the chart; values not tabulated) (FFLS-FS, page 10).
• Top 10 lists. Top nine stock longs total 27.23% and top 10 shorts total 19.58% (my arithmetic, FFLS-FS, pages 6 to 8). The largest long line is "US DOLLAR BROKER", $19,793,985 or 44.08% of net assets (FFLS-FS, page 6). This is likely cash held at the short-sale broker (my inference).
• Stated targets or limits. None for long, short or gross. Net long may exceed 100% (FFLS-PR, page 4).
• How it could get exposure above 100%. The documents allow:
  • Derivatives: "swap agreements, options, futures, and forward contracts," which "may give rise to exposures that exceed the Fund's total assets" (FFLS-PR, page 4).
  • Short sale proceeds: "Reinvesting proceeds received from short selling may create leverage" (FFLS-PR, page 8, "Short Sales Risk").
  • Borrowing: "The Fund may borrow money for investment purposes, which is a form of leveraging" (FFLS-SAI, page 6, "Borrowing").
  • None is shown in use. Gross was 0.87x on November 9, 2026 (my arithmetic), and "The Fund may hold a substantial portion of its total assets in cash when it holds significant short positions" (FFLS-PR, page 4).
• Borrowing limits. "continuous asset coverage of not less than 300% with respect to all borrowings" (FFLS-SAI, page 6). Fundamental policy allows bank borrowing at 300% asset coverage, plus temporary borrowing up to 5% of total assets (FFLS-SAI, page 40, "Fundamental Investment Limitations"). No line of credit is named. The SAI mentions a line of credit only as a possible cost (FFLS-SAI, page 6).
• Margin purchases barred. Fundamental policy: the fund may not "Purchase securities on margin," apart from short-term credit for clearing trades (FFLS-SAI, page 40). Changing it needs a shareholder vote (FFLS-SAI, page 40).

6. Shorting, financing and collateral

• How it shorts. Direct short sales: "the broker-dealer through which the short sale is made must borrow the security sold short and deliver it to the party purchasing the security" (FFLS-SAI, page 33, "Short Sales"). The fact sheet shows negative share counts for the top 10 shorts, all single stocks (FFLS-FS, pages 7 and 8). The fund may also "purchase put options on" thematic losers (FFLS-PR, page 4). No split between shorts and puts is given.
• Who lends the stock and who holds the collateral. The broker-dealer borrows the stock. "The Fund is required to make a margin deposit in connection with such short sales" and "it will provide collateral to the broker-dealer" (FFLS-SAI, page 33). The broker is not named. A short can be forced closed early if "the securities lender required the Fund to deliver the securities" (FFLS-PR, page 18, "Short Sales Risk").
• What is posted. At the broker: a margin deposit and collateral, type not stated. At the custodian: "cash, U.S. government securities or other liquid securities" in a segregated account, equal to the short market value minus the amount deposited with the broker (FFLS-SAI, page 33). Whether long stocks are pledged is not stated.
• Short sale proceeds used to buy longs. Not stated as a practice. The prospectus says only that reinvesting them "may create leverage" (FFLS-PR, page 8). The 44.08% "US DOLLAR BROKER" line suggests proceeds were left as cash at the broker on November 9, 2026 (my inference) (FFLS-FS, page 6).
• Segregated or tri-party account. Yes, a segregated account "with its custodian" (FFLS-SAI, page 33). The prospectus adds that the fund must "segregate other assets on its books to cover its obligation to return the security to the lender" (FFLS-PR, page 18). No tri-party agreement is named.
• Costs named. Short sales may bring "costs of borrowing and margin account maintenance costs". The fund must pay dividends on stock sold short, and "may be required to pay a premium or interest to the lender" (FFLS-PR, page 18, "Short Sales Risk").
• Securities lending. Permitted, capped at 33 1/3% of total assets, with collateral of at least 100% marked daily (FFLS-PR, page 12, "Securities Lending"). The SAI caps it at "one-third of the Fund's total net assets" (FFLS-SAI, page 32). The documents don't say whether FFLS actually lends. The fee table excludes lending costs (FFLS-PR, page 13).
• Permitted only. Repurchase agreements (FFLS-SAI, page 32), swaps, futures, forwards and other options (FFLS-PR, page 4), and other ETFs (FFLS-PR, page 4). None is shown in the fact sheet holdings.

7. Derivatives and Rule 18f-4

• Derivatives used or permitted.
  • Principal strategy: the adviser "will take short positions in, or purchase put options on" thematic losers (FFLS-PR, page 4). This is the only derivative named as part of how the fund picks positions.
  • Permitted: "swap agreements, options, futures, and forward contracts" (FFLS-PR, page 4). The SAI covers options, futures, options on futures, spread transactions and swaps (FFLS-SAI, pages 14 to 21, "Derivatives"). Swaps may be used "to gain exposure to equity or debt securities without actually purchasing those securities, or to hedge a position" (FFLS-SAI, page 20, "Swap Agreements").
  • Wording conflict: the principal risk says "The Fund uses investment techniques, including investments in swaps, futures contracts and options" (FFLS-PR, page 5, "Derivatives Risk"). The strategy says only that the fund "may" use them (FFLS-PR, page 4). No swap or futures holding appears on the fact sheet (FFLS-FS, pages 6 to 8).
• Limited derivatives user or full program. Not stated. The SAI describes Rule 18f-4 in general terms only. Under the rule, "Derivatives Transactions" include "(2) any short sale borrowing" (FFLS-SAI, page 36, "Regulatory Risks of Derivative Use"). The limited user exception applies only if derivatives exposure is "limited to 10% of its net assets" (FFLS-SAI, page 36). Shorts were 26.56% of net assets on November 9, 2026 (FFLS-FS, page 10). So FFLS likely cannot use the exception and must run a full program (my inference).
• VaR test and reference portfolio. Not stated. The SAI says only that a fund must "comply with a relative or absolute limit on Fund leverage risk calculated based on value-at-risk" (FFLS-SAI, page 36). VaR (value at risk) estimates the most a fund could lose over a set period at a set confidence level. No derivatives risk manager is named.
• Commodity pool status. "The Funds' Adviser has claimed relief from registration as a CPO" (commodity pool operator) (FFLS-SAI, page 36). The CFTC rule relied on (such as Rule 4.5) is not named.

8. Costs

• Fee table looks inconsistent (my inference). The table shows a waiver of (1.24%), bringing 2.48% down to 1.24%. But the cap excludes the 0.81% of short costs. Capping the other 1.67% at 1.24% gives a waiver of about 0.43% and a net ratio of about 2.05% (my arithmetic). The audited figures agree with that: net 2.04%, and 1.24% net "Excluding interest expense and dividends on securities sold short" (FFLS-PR, page 27). The SAI's dollar figures agree too: the adviser earned $403,423 and waived $174,822 in fiscal 2026 (FFLS-SAI, page 52), which is about 0.43% of average net assets (my arithmetic, using the 1.00% fee rate to back out average net assets of about $40.3 million).
• Who pays what. The fund pays the 1.00% fee plus its own operating costs: custody, transfer agency, administration, legal, audit, trustees, registration and printing (FFLS-SAI, page 52; FFLS-PR, page 20). The adviser waives fees down to the cap and pays the distributor's fee (FFLS-SAI, page 59). Fiscal 2026 service fees paid by the fund: administration $67,092, fund accounting $22,121, transfer agent $10,241, compliance $20,510 (FFLS-SAI, pages 57 and 58).
• Expense example. $126 for 1 year, $654 for 3 years, $1,209 for 5 years, $2,722 for 10 years per $10,000 (FFLS-PR, page 3).
• Brokerage commissions. $19,796 (fiscal 2024, from June 20, 2023), $39,484 (fiscal 2025), $27,171 (fiscal 2026) (FFLS-SAI, page 62, "Portfolio Transactions and Brokerage Allocation"). Fiscal 2026 commissions were about 0.07% of average net assets (my arithmetic).
• Portfolio turnover. 88% (period to May 31, 2024, not annualized), 313% (fiscal 2025), 283% (fiscal 2026) (FFLS-PR, page 27). The SAI says fiscal 2026 turnover "decreased due to the relative lack of market volatility as the planned global tariff increases were scaled back" (FFLS-SAI, page 62).
• Gap between expense ratio and management fee. Fee table: 2.48% minus 1.00% = 1.48% gross gap; 1.24% minus 1.00% = 0.24% net gap (my arithmetic). Actual fiscal 2026: 2.04% minus 1.00% = 1.04% (my arithmetic). Of that 1.04%, 0.81% is short interest and dividends and about 0.24% is other costs left after the waiver (my arithmetic; small rounding difference).

9. Performance and risk

Fact sheet returns (FFLS-FS, page 2). No benchmark is shown on the fact sheet.

The daily table's one-day percent change column shows "$1.27" for NAV and "$1.36" for market price. These look like percentages printed with a dollar sign (my inference), since $0.29 on a prior NAV of $22.87 is 1.27% (my arithmetic) (FFLS-FS, page 2).

Prospectus returns against the S&P 500 Total Return Index, periods ended December 31, 2025 (FFLS-PR, page 9, "Performance"):

• Calendar-year returns. 2024: 17.54%. 2025: 7.60%. Year to date to June 30, 2026: 0.43% (FFLS-PR, page 9).
• Best and worst quarter. Best 11.24% (quarter ended March 31, 2024). Worst -2.46% (quarter ended December 31, 2025) (FFLS-PR, page 9).
• After-tax returns, to December 31, 2025. After taxes on distributions: 4.89% (1 year), 8.48% (since inception). After taxes on distributions and sale: 4.50% and 7.14% (FFLS-PR, page 9).
• Fiscal-year total returns at NAV. 15.25% (June 20, 2023 to May 31, 2024, not annualized), 10.09% (fiscal 2025), 0.51% (fiscal 2026) (FFLS-PR, page 27).
• Risk statistics. None given: no beta, correlation, volatility, Sharpe ratio, drawdown or capture figures.

10. History and structural changes

• Predecessor funds. None stated. Searches for predecessor and 351 found nothing.
• Reorganizations and 351 conversions. None stated. "Reorganization" appears only in general text on distressed securities and Rule 6c-11 (FFLS-SAI, pages 38 and 78).
• Name, ticker, adviser or trust changes. None stated for FFLS. The fact sheet says a sister fund was renamed: "Effective April 1, 2025, the name of The Future Fund Active ETF was changed to One Global ETF" (FFLS-FS, page 14). The administrator was formerly Gemini Fund Services, LLC (FFLS-SAI, page 56).
• Document dates. The prospectus and SAI are dated September 28, 2026 and reflect the fiscal year ended May 31, 2026. The fact sheet is a web page printout with data as of November 9, 2026. Its expense figures and cap date look older than the prospectus (see conflicts below). The May 31, 2026 annual report is referred to but was not attached (FFLS-PR, page 27).
• Conflicts between documents.
  • Exchange: "NYSE Arca" (FFLS-PR, page 1; FFLS-SAI, page 1) versus "Primary Exchange NYSE" (FFLS-FS, page 5).
  • Expense cap end date: September 30, 2027 (FFLS-PR, page 3; FFLS-SAI, page 51) versus September 30, 2026 (FFLS-FS, page 3 and page 6).
  • Total operating expense: 2.48% gross (FFLS-PR, page 3) versus 2.05% (FFLS-FS, page 2 and page 5). 2.05% matches the fiscal 2025 gross ratio (FFLS-PR, page 27), so the fact sheet likely predates the September 28, 2026 prospectus on this point (my inference).
  • Net expense ratio: 1.24% in the fee table versus 2.04% audited for fiscal 2026 (FFLS-PR, pages 3 and 27). See section 8.
  • Portfolio manager tenure: "January 2022" (FFLS-PR, page 10) versus a June 20, 2023 start of operations (FFLS-PR, page 9).
  • Turnover: "low to moderate" expected (FFLS-PR, page 4) versus 283% to 313% actual (FFLS-PR, page 27).

11. Principal risks

Summary list: FFLS-PR, pages 5 to 8, "Principal Risks". Longer descriptions: FFLS-PR, pages 13 to 18, "Principal Risks of Investing in the Fund".

• Active Management Risk (page 5; page 13).
• Authorized Participant Risk (page 5; page 13).
• Company-Specific Risk (page 5; page 13).
• Convertible Securities Risk (page 5; page 13).
• Depositary Receipts Risk (page 5; page 13).
• Derivatives Risk (pages 5 and 6; pages 14 and 15). Flag: leverage and counterparties. Names "leverage risk" and "counterparty risk," plus risks from the clearing broker. Sub-risks: futures contracts, hedging, options, and swaps, including total return swaps and the risk "that the party with whom the Fund has entered into the swap will default".
• Early Close/Trading Halt Risk (page 6; page 15).
• Emerging Markets Risk (page 6; page 15).
• Equity Securities Risk (page 6; page 15).
• ETF Structure Risk (page 7; page 16).
• Foreign Securities Risk (page 7; page 17).
• Investing in Other ETFs Risk (page 7; page 17).
• Issuer Risk (page 7; page 17).
• Large Capitalization Company Risk (page 7; page 17).
• Leverage Risk (page 8; page 17). Flag: leverage. Covers borrowing, "entering into short sales," margin purchases and derivatives. The longer text warns of forced sales "to comply with limits on leverage and asset segregation requirements" under the 40 Act.
• Market Risk (page 8; page 18).
• Mid Cap Securities Risk (page 8; page 18).
• Short Sales Risk (page 8; page 18). Flag: shorting and counterparties. Loss is "theoretically unlimited". The longer text covers borrow recalls by the securities lender, "costs of borrowing and margin account maintenance costs", dividends owed on shorts, and the "negative cost of carry".
• Small Cap and Emerging Growth Securities Risk (page 8; page 18).

Listed as other (non-principal) risks: Operational and Cybersecurity Risk and Securities Lending Risk (FFLS-PR, page 19, "Other Risks"). No principal risk is named for the prime broker itself or for the custodian.

12. Relevance to our fund

• How close is its structure and leverage? Not close (my inference). FFLS is a net-long, thematic long/short equity fund. It ran 0.87x gross and 33.51% net on November 9, 2026. Our fund is 3.0x gross and market neutral. FFLS sits on the Ultimus Northern Lights platform, not Tidal. The overlap is the 40 Act ETF wrapper and direct shorting through a broker-dealer.
• What does it show about 3.0x gross in a 40 Act ETF? (my inference)
  • Nothing directly. It has never shown gross above 1.0x on the fact sheet.
  • Its fundamental policy bars buying "securities on margin" (FFLS-SAI, page 40, "Fundamental Investment Limitations"). In the direct-short formula in fund_context.md, the $50 × d term is a broker loan to buy longs. A trust with this policy wording could not take that loan without a shareholder vote. We should check Tidal's trust policies for the same wording before relying on broker financing.
  • The SAI's short-sale setup is collateral at the broker plus a segregated cover account at the custodian. That pattern holds back cash and liquid assets at two places. At 150% short, the cover account needs could limit how much short cash can fund longs. The SAI doesn't give figures, so the size of this drag at 3.0x is unknown.
• What does it show about financing, collateral, custody and costs? (my inference)
  • Custody: longs sit with Brown Brothers Harriman, and the short margin sits with an unnamed broker-dealer. The 44.08% "US DOLLAR BROKER" line fits Tidal's view that shorts are held away from the main custodian.
  • Visibility: short interest and dividends are reported, but combined (0.81% in fiscal 2026). We can't split dividends from borrow fees and margin interest. Dividends on shorts aren't a true financing cost, so 0.81% overstates financing.
  • Rough scale: the only short level on record is 26.56% on November 9, 2026. If the fiscal 2026 average was similar, 0.81% of net assets is about 3% of short value per year, dividends included (my arithmetic). That rate can't be applied to a 150% short book without knowing the split and the average short level.
  • Headline cost: the 1.24% cap leaves out short costs, and the fee table shows 1.24% net while the audited net ratio is 2.04%. Peers' headline ratios may hide short costs the same way. We should compare audited ratios that include short costs.

13. Gaps and open questions

What the documents don't answer, for a 150/150 fund:

• The prime broker's name and the margin type (Reg T or portfolio margin).
• Whether short sale proceeds are used to buy longs, or left as cash at the broker.
• What collateral is posted at the broker, and whether long stocks are pledged.
• How the 0.81% splits between short dividends, borrow fees and margin interest, and any rebate earned on short cash.
• Average long, short and gross exposure over the fiscal year. Only one date is given.
• Whether the fund runs a full Rule 18f-4 program, which VaR test it uses, and the reference portfolio.
• How much of the short exposure comes from put options, and whether swaps or futures have been used.
• Whether the fund lends securities, and through which agent.
• Beta and other risk statistics, the position count, and any Morningstar data.

Questions to ask:

• To the fund: Which broker-dealer holds your shorts? Is the account Reg T or portfolio margin? Is it under a Rule 17f-1 contract or a tri-party control agreement with Brown Brothers Harriman?
• To the fund: How did the 0.81% of interest and dividend expense in fiscal 2026 split between short dividends and borrow or financing charges?
• To the fund or Ultimus: Does the fundamental policy against buying "securities on margin" stop the fund from using a broker loan to buy longs? How is short sale cash treated under it?
• To the fund: Is the fee table's (1.24%) waiver line correct, given that the cap excludes short costs and the audited net ratio is 2.04%?
• To the fund: Which Rule 18f-4 VaR test and reference index did the board approve?
• To the fund: Why does the prospectus show the portfolio managers with the fund since January 2022 when the fund began on June 20, 2023?
• To Tidal: Do Tidal Trust's fundamental policies include the same "Purchase securities on margin" bar?

Search terms tried for fields left "Not stated":

• Prime broker and margin type: prime broker, borrow, margin, Regulation T, portfolio margin, counterparty, collateral, segregat.
• Leverage cost split: short sale, sold short, interest expense, dividend expense, rebate, line of credit, box spread, reverse repurchase, swap.
• VaR test: 18f-4, value at risk, VaR, derivatives risk manager, limited derivatives user.
• Commodity pool: commodity pool, 4.5, futures, options.
• Securities lending agent: securities lending, lend portfolio, lending agent.
• Beta and risk data: beta, Sharpe, volatility, drawdown, Morningstar (fact sheet read in full).
• History: predecessor, reorganiz, 351.
• Supplements: supplement (only the SAI cover's "as supplemented" wording found).

14. Documents used

Page numbering.

• FFLS-FS: no printed page numbers. It is a web page split across 15 PDF pages.
• FFLS-PR: PDF page 1 is the cover and page 2 the contents (no printed numbers). From PDF page 3 on, PDF page = printed page + 2. The summary section is PDF pages 3 to 10 (printed 1 to 8).
• FFLS-SAI: PDF page 1 is the cover and page 2 the contents. From PDF page 3 on, PDF page = printed page + 2.

15. Snapshot sources

• Ticker: FFLS-FS, page 1, header ("LONG/SHORT ETF (FFLS)"); FFLS-FS, pages 4 and 5, "FFLS Facts as of 11/09/2026". On ls_peers_list.md.
• Fund name: FFLS-FS, page 1, header ("THE FUTURE FUND LONG/SHORT ETF"); FFLS-PR, page 1, cover.
• As of date: "FFLS FACTS AS OF 11/09/2026" and "DAILY PERFORMANCE AS OF 11/09/2026" (FFLS-FS, pages 4 and 1).
• Adviser: FFLS-PR, page 1, cover ("Advised by: The Future Fund, LLC."); FFLS-PR, page 20, "The Adviser".
• Platform: (my inference). The fund is "a separate series of Northern Lights Fund Trust II" (FFLS-PR, page 1). The trust has "multiple series" (FFLS-SAI, page 48). Ultimus Fund Solutions is administrator and an affiliate of the distributor and compliance provider (FFLS-SAI, pages 56 and 58).
• Exchange: FFLS-PR, page 1, cover ("Exchange: NYSE Arca, Inc."); FFLS-SAI, page 1. The fact sheet says "NYSE" (FFLS-FS, page 5).
• Inception: FFLS-FS, page 5 ("Inception Date 6/20/23"); FFLS-PR, page 9 ("commenced operations on June 20, 2023").
• Net assets: $44,923,760.35, November 9, 2026 (FFLS-FS, pages 4 and 5, "FFLS Facts as of 11/09/2026").
• Strategy type: (my inference) from "The Fund will be managed with a net long exposure bias" (FFLS-PR, page 4, "Principal Investment Strategies") and 33.51% net exposure (FFLS-FS, page 10).
• Long %: "Long Exposure 60.07%", November 9, 2026 (FFLS-FS, page 10, "Portfolio Market Exposure"). Excludes options and cash.
• Short %: "Short Exposure -26.56%", November 9, 2026 (FFLS-FS, page 10).
• Gross: "Gross Exposure 86.63%" (FFLS-FS, page 10), shown as a multiple: 0.87x (my arithmetic).
• Above 2.0x: based on 86.63% gross (FFLS-FS, page 10).
• Net: "Net Exposure 33.51%" (FFLS-FS, page 10; also "Net Mkt. Exposure 33.51%", page 5).
• Short method: "the broker-dealer through which the short sale is made must borrow the security sold short" (FFLS-SAI, page 33, "Short Sales"). Put options are also named (FFLS-PR, page 4), but the Short method list has no options value.
• Prime broker or counterparty: the documents say only "the broker-dealer" (FFLS-SAI, page 33). The fact sheet's "US DOLLAR BROKER" line names no firm (FFLS-FS, page 6).
• Custodian: FFLS-SAI, page 58, "Custodian"; FFLS-PR, page 25, "Fund Service Providers".
• Management fee: FFLS-PR, page 3, fee table ("Management Fees 1.00%"); FFLS-SAI, page 51.
• Total expense ratio: fee table "Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursements 1.24%" (FFLS-PR, page 3). Audited "Ratio of net expenses to average net assets" 2.04% for the year ended May 31, 2026 (FFLS-PR, page 27, "Financial Highlights"). The two conflict; see section 8.
• Short costs in expense ratio: the fee table includes "Interest /Dividend Expense 0.81%" within Other Expenses (FFLS-PR, page 3). The audited ratios include them (FFLS-PR, page 27, footnote 3).
• 3-month return: 0.21% at NAV, quarter to September 30, 2026 (FFLS-FS, page 2, "Quarter-End Performance as of 09/30/2026").
• 1-year return: -1.83% at NAV, 1 year to September 30, 2026 (FFLS-FS, page 2, "Quarter-End Performance as of 09/30/2026").
• Beta: not given in any of the three documents.
• Beta benchmark: not stated, because no beta is given.
• Beta period: not stated, because no beta is given.
• Leverage Method: direct shorts from "the broker-dealer through which the short sale is made must borrow the security sold short" and "The Fund is required to make a margin deposit in connection with such short sales" (FFLS-SAI, page 33). No document says Reg T, Regulation T or portfolio margin. Single-stock options from "The Adviser will take short positions in, or purchase put options on, the securities of companies" (FFLS-PR, page 4, "Principal Investment Strategies"). No option holdings are shown on the fact sheet, and its exposure figures exclude options (FFLS-FS, page 10).
• Leverage cost: "Interest /Dividend Expense 0.81%" (FFLS-PR, page 3). The fiscal year is matched from the audited ratios: 2.48% gross minus 1.67% gross "Excluding interest expense and dividends on securities sold short" = 0.81% for the year ended May 31, 2026 (my arithmetic) (FFLS-PR, page 27, footnote 3).
• Short dividend expense: combined with interest in the same line (FFLS-PR, page 3; FFLS-PR, page 27, footnote 3).
• Ranking properties (Rank to Score): from the ranking of the 27 LS peers prepared November 11, 2026, using only the project's fund profiles. Each of the seven criteria scores Yes = 1, Partly = 0.5, No or Not stated = 0. Funds sort first by Portfolio margin (YES, LIKELY, POSSIBLE, UNLIKELY, NO), then by Score, then Tidal funds first, then higher gross exposure (my inference).
• Rank: 17 of 27, as of November 11, 2026.
• Long/short: net long, 60.07% long and 26.56% short on November 9, 2026 (FFLS-FS, page 10).
• Portfolio margin: UNLIKELY. Fundamental policy: the fund may not "Purchase securities on margin," apart from short-term credit for clearing trades, and changing it needs a shareholder vote (FFLS-SAI, page 40). That points away from portfolio margin (my inference).
• Cross-collateral: Not stated. The fund makes a margin deposit and provides collateral to the broker-dealer, type not stated (FFLS-SAI, page 33).
• Outside Reg T: Not stated.
• Short costs (includes dividends): No. 0.81% for the fiscal year ended May 31, 2026 (FFLS-PR, page 27; my arithmetic).
• Over 2.0x: No. 0.87x on November 9, 2026 (FFLS-FS, page 10).
• Tidal: No. The fund is a series of Northern Lights Fund Trust II, on the Ultimus platform (FFLS-PR, page 1; FFLS-SAI, pages 56 and 58).
• Score: 1 (my arithmetic).

16. Fund Documents

Fact Sheet

Prospectus

SAI