ETF Education Report: UNLIMITED HFEQ EQUITY LONG/SHORT ETF (HFEQ)

What this ETF is trying to do

The UNLIMITED HFEQ EQUITY LONG/SHORT ETF (HFEQ) is an exchange-traded fund listed on the NYSE. Based on its name and holdings, it uses a "long/short" strategy. This means it likely holds some investments to profit when prices go up and other investments to profit when prices go down. Its portfolio includes a mix of different ETFs and index futures.

What the numbers show

As of September 23, 2026, the current price of HFEQ is $23.31.

When looking at how the fund has performed, it is important to look at two different types of returns:

• Price Return: This measures only the change in the share price. The year-to-date (YTD) price return is approximately 11.86%. The one-year price return is approximately 4.65%.

• Total Return: This includes the share price change plus any distributions (cash paid out). The YTD total return is approximately 11.86%. The one-year total return is significantly higher at approximately 15.49%.

An estimated price from roughly one year ago was $22.27.

Income and distribution explanation

HFEQ has a distribution yield of approximately 9.43%. This number describes the cash distributions relative to the ETF price. The trailing distributions are approximately $2.20.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value. This fund has an irregular or less frequent distribution schedule, with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing.

For HFEQ, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are the top holdings in the portfolio (note that this is a partial list):

• Vanguard MStar Value ETF: 17.44%

• E-mini Nasdaq 100 Future Dec 26: 17.32%

• MSCI Emerging Markets Index Future Dec 26: 16.73%

• Vanguard MStar Mid Cap ETF: 14.10%

• First American Government Obligs X: 13.66%

• MSCI EAFE Index Future Dec 26: 12.76%

• State Street® Materials Select Sector SPDR® ETF: 12.48%

Holdings can change over time. This data was updated on October 4, 2026.

Pros

• The one-year total return (15.49%) is higher than the one-year price return (4.65%), meaning distributions added value to the total return.

• The erosion-risk score suggests a stable profile.

Cons

• The distribution frequency is irregular, meaning investors cannot rely on a steady schedule of cash payments.

Beginner takeaway

When looking at HFEQ, notice the difference between price return and total return. The total return is higher because it includes the cash distributions. Also, while the distribution yield is high (9.43%), always remember that high yields do not guarantee the share price will stay stable.