ETF Evaluator:
LHA Market State Tactical Beta ETF ()
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(as of Aug 26)
Best Performing in Equity Hedged Over the Last Year
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ETF Details
LHA Market State Tactical Beta ETF Overview
LHA Market State Tactical Beta ETF (MSTB) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). Little Harbor Advisors launched the ETF in 2020.
The investment seeks long-term out-performance relative to the large-capitalization U.S. equity market.
The fund is an actively-managed ETF and seeks to achieve its objective principally by investing in instruments linked directly or indirectly to the performance and/or volatility of the S&P 500® Index based on statistical analyses that seek to estimate the direction of the S&P 500. Under normal market conditions, the fund’s baseline exposure each day to the S&P 500 is approximately 100%, which the fund’s portfolio managers then adjust based on a statistical method of analysis evaluating the movement of the VIX Index. The fund is non-diversified.
About LHA Market State Tactical Beta ETF (MSTB)
There are 2 members of the management team with an average tenure of 5.84 years: D. Matthew Thompson (2020) and Michael Thompson (2020). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. LHA Market State Tactical Beta ETF has 9 securities in its portfolio. The top 10 holdings constitute 122.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
LHA Market State Tactical Beta ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. LHA Market State Tactical Beta ETF has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 106.1% There is 0.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 6.3% (6.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). LHA Market State Tactical Beta ETF has -12.5% of the portfolio in cash.
Assets Under Management
The fund has $192 million in total assets, which is below the $294 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
MSTB Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The LHA Market State Tactical Beta ETF expense ratio is high compared to funds in the Equity Hedged category. LHA Market State Tactical Beta ETF has an expense ratio of 1.38%, which is 81% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. LHA Market State Tactical Beta ETF has a portfolio turnover rate of 2%, which indicates that it holds its assets around / 0.5 years. By way of comparison, the average portfolio turnover is 97% for the Equity Hedged category.
Recently, in the month of July 2026, LHA Market State Tactical Beta ETF returned -0.1%, which earned it a grade of C, as the Equity Hedged category had an average return of -1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
LHA Market State Tactical Beta ETF has a trailing yield of 0.38%, which is below the 3.45% category average.
The fund normally distributes its income annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
LHA Market State Tactical Beta ETF Grades
Year to date, the ETF has returned 7.5%, 0.3 percentage points better than the category, which translates into a grade of C. The fund has returned 13.2% over the past year (grade of C), 15.6% over the past three years (grade of A) and 7.6% per year over the past five years (grade of B).
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MSTB Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MSTB Return (NAV) | -0.1% | 2.4% | 13.2% | 15.6% | 7.6% | na |
| MSTB Return (Price) | -0.0% | 2.5% | 13.5% | 15.7% | 7.6% | na |
| NAV +/- Price Return | -0.084% | -0.097% | -0.375% | -0.113% | 0.005% | na |
| Equity Hedged Avg | -1.4% | 1.7% | 13.6% | 12.0% | 6.6% | 7.6% |
| MSTB Grade (NAV) | C | C | C | A | B | na |
| +/- Category (NAV) | 1.3% | 0.7% | -0.4% | 3.6% | 1.1% | na |
| MSTB Tax-Cost Ratio | na | na | 0.2% | 0.2% | 0.4% | na |
MSTB Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MSTB Return (NAV) | 7.5% | 18.3% | 18.4% | 16.7% | -22.1% | 22.2% | na | na | na | na | na |
| MSTB Return (Price) | 7.4% | 18.6% | 18.8% | 16.9% | -22.7% | 21.8% | na | na | na | na | na |
| NAV +/- Price Ret | -0.008% | 0.017% | 0.024% | 0.013% | 0.028% | -0.018% | na | na | na | na | na |
| Equity Hedged Avg | 7.1% | 12.6% | 14.6% | 14.8% | -12.9% | 15.6% | 10.2% | 9.9% | -6.3% | 12.2% | 3.0% |
| MSTB Grade (NAV) | C | A | C | B | F | A | na | na | na | na | na |
| +/- Category | 0.3% | 5.7% | 3.8% | 1.9% | -9.2% | 6.7% | na | na | na | na | na |
| Risk Measures | |
| Beta: | 0.92 |
| R-Squared: | 90% |
| Standard Deviation: | 12.7% |
| Category Risk Index: | 1.20 |
| Category Risk Rating: | High |
| Total Risk Index: | 1.03 |
| Total Risk Rating: | Average |
| Portfolio Characteristics | |
| Yield: | 0.4% |
| Total Assets: | $ 193 Mil |
| Share Class Assets: | $ 193 Mil |
| Turnover: | 2.0% |
| Expense Ratio: | 1.38% |
| Index Fund: | No |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 5.8 years | |||
| Average Tenure: 5.8 years | |||
| Managers (Year): Thompson D. Matthew (2020), Thompson Michael (2020) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 9 |
| % in Top 10 Holdings: | 122.7% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.5% |
Portfolio Allocation |
|
| Domestic Stock: | 106.1% |
| Foreign Stock: | 0.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 6.3% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | -0.5% |
| Cash: | -12.5% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Little Harbor Advisors |
| Phone Number: | 800-617-0004 |
| Website: | |
| Inception Date: | September 29, 2020 |
Expenses and Fees
| Expense Ratio (%): | 1.38% (Rating: High) |
| Category Average Expense Ratio (%): | 0.76% |
