XOUT® U.S. Large Cap Fund Index

The only thing more important than what you put IN your portfolio is what you XOUT®.

XOUT® U.S. Large Cap Index (XOUTTR), applies a proprietary quantitative rule-based methodology to identify which of the 500 largest U.S. companies to exclude or “XOUT®” from the Index. The Index approach benefits from what it does NOT hold, as opposed to what it owns.

The methodology is driven by one of the largest forward-facing risks impacting all large companies, technological disruption. Each company in the investable universe receives a model score based on quantitatively derived inputs that qualify each company as being qualified or XOUT’d. The quantitative inputs informing the XOUT™ proprietary model include a combination of factors and/ or signals designed to identify industry and secular disruption being impacted by technological innovation.

Companies scoring in the aggregate below the median quintile in the investable universe are XOUT’d and the remaining names are owned in the Index and re-weighted by market capitalization.

August 2023 Disclosure Statement

Please be advised that while XOUT Capital® continues to own and control the XOUT® Index (XOUTR), it has decided to terminate its license with GraniteShares for the XOUT ETF. The Index License Agreement with Granite terminated on August 14, 2023.

We would like to take this opportunity to thank all of you for your constant support over the years as we embarked upon this journey of launching our first index.

Although the XOUT® index has performed well since inception vs the US Large cap index, our goal of licensing to an ETF that could raise sizable assets was not achieved. It is a rare accomplishment to launch an Index independently and find any market support if you are not part of the one of the large ETF sponsors. However, raising assets for an ETF is still a challenging business endeavor, even when you have a novel idea and performance to back it up.

It has been a remarkable experience that we learned a lot from. We hope to return to the market when the opportunity presents itself. Our thesis remains the same, it’s not what you put in your portfolio that matters, it’s what you XOUT®.

Thank you again for your support and if you have any questions please do not hesitate to contact us.

XOUT Capital®

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