Northern Lights Fund Trust III has made a significant move in the investment landscape by filing a new prospectus for its HCM Select 50 ETF. This filing, dated October 22, 2026, outlines the fund's objectives, management fees, and investment strategies, which are designed to attract investors seeking income and long-term capital appreciation.
The HCM Select 50 ETF will be actively managed by Howard Capital Management, LLC, using a proprietary investment model. This model is co-developed with Ned Davis Research, Inc., and aims to select a portfolio of stocks from the S&P 500 Index based on specific performance metrics. The fund's management fees are set at 0.95%, with total annual operating expenses estimated at 1.35%.
This update is crucial not only for Northern Lights Fund Trust III but also for the broader investment industry. As firms continue to innovate in fund offerings, the competition to attract investors intensifies. The HCM Select 50 ETF is positioned to compete with other ETFs and investment vehicles in a market that increasingly values unique strategies and transparent fee structures.
Background
Northern Lights Fund Trust III is an investment entity incorporated in Delaware. The company focuses on providing a range of investment products, including exchange-traded funds (ETFs). The HCM Select 50 ETF is part of its strategy to expand its offerings and appeal to a broader investor base. The recent filing is part of a series of documents submitted to the SEC, including various forms and certifications leading up to this prospectus.
What the Filing Says
The filing, accession number 0001580642-26-007022, details the investment objective of the HCM Select 50 ETF, which is to provide income and long-term capital appreciation. The fund will utilize a proprietary scoring system to select stocks based on dividend yield and EBITDA-to-Enterprise Value ratios. This method aims to identify companies that are likely to perform well in the market.
Impact
This development may affect a wide range of stakeholders, including potential investors looking for new investment opportunities and competitors in the ETF space. The emphasis on active management and specific investment strategies may attract investors seeking more tailored investment solutions. Additionally, the filing highlights the importance of understanding the risks associated with ETFs, particularly in a volatile market environment.
What's Next
The filing does not specify what happens next, but it is expected that Northern Lights Fund Trust III will continue to promote the HCM Select 50 ETF to potential investors as it prepares for its launch. Further updates may follow as the fund begins operations and provides performance data.