Castellan Targeted Equity ETF

Cboe: CTEF

Listed June 18, 2025

Methodology

The Castellan Targeted Equity ETF (CBOE:CTEF) is an actively managed exchange-traded fund (ETF) that seeks to provide capital appreciation by investing in a select group of equity securities that exhibit growth at a reasonable price or GARP. In selecting equity securities for the Fund, Castellan employs a proprietary methodology to find equity securities with several strong fundamental factors, including earnings growth and value characteristics. Options strategies may be used to enhance returns on equity positions.

Why purchase this ETF?

The Targeted Equity ETF offers a disciplined, active approach to stock selection by combining three powerful investment factors: value, momentum, and earnings. Unlike traditional passive strategies, this ETF focuses on a concentrated portfolio of high-conviction stocks selected based on fundamental strength and earnings momentum.

What sets this ETF apart:

1. Dynamic Stock Selection: The portfolio adapts to market conditions, with entries and exits triggered by material changes in consensus earnings estimates and momentum scores, helping to stay ahead of the curve.
2. Value + Momentum Edge: Research shows combining value and momentum has historically produced superior risk-adjusted returns versus either factor alone.
3. Options-Enhanced Upside: Option strategies are selectively deployed to boost returns on new positions, creating a unique alpha source without adding excessive risk.

This ETF is designed for investors seeking a high-conviction, data-driven strategy that actively responds to changing market signals with the goal of delivering outperformance over the long run.

Fund Objective

The Castellan Targeted Equity ETF (the Fund) seeks to achieve capital appreciation.