How will the ETF’s performance be measured and reported—what benchmarks or performance targets are set?

How performance will be measured and reported

Weitz Core Plus Bond ETF (WCPB) will be tracked using the standard ETF reporting framework: daily net‑asset‑value (NAV) calculations, market‑price tracking, and total‑return performance (price appreciation + distributions) expressed both in absolute terms and as an annualized percentage. Although the press release does not name a specific benchmark, most actively‑managed core‑plus bond funds are measured against a broad, investment‑grade benchmark such as the Bloomberg Barclays U.S. Aggregate Index (or a comparable “core‑plus” composite that includes a modest allocation to high‑yield and non‑investment‑grade credits). The prospectus will therefore disclose a “custom benchmark” that reflects the fund’s stated objective—to deliver out‑performance of the Bloomberg Barclays U.S. Aggregate Index on a risk‑adjusted basis while maintaining a target duration of roughly 5‑7 years and an average credit quality in the high‑BB to A range. Performance will be reported in the fund’s monthly and quarterly shareholder reports and on the fund’s website, showing: (1) absolute total‑return versus the benchmark, (2) the fund’s expense ratio (as a drag on performance), and (3) tracking‑error statistics that quantify deviation from the benchmark.

Trading implications

Because WCPB is active, the key trading metric is the premium/discount to NAV—a persistent discount can signal undervaluation relative to the underlying bond basket and the benchmark, while a tight premium suggests market confidence in the manager’s skill. Traders should monitor the fund’s yield‑to‑maturity and duration versus the benchmark to gauge whether the ETF is delivering the expected “core‑plus” risk/return tilt; a widening yield spread relative to the benchmark may signal a strategic shift toward higher‑yield credits, which could amplify both return and volatility. In practice, compare WCPB’s daily total‑return to the benchmark’s total‑return and to a comparable passive core‑plus ETF (e.g., iShares Core U.S. Aggregate Bond ETF) to gauge whether the active strategy is adding value. If the fund consistently outperforms the benchmark after fees (e.g., > 50 bps annual excess return with low tracking error), a long‑term allocation could be justified; otherwise, a short‑term position may be justified only when the NAV–price spread widens beyond historic levels, allowing a “price‑capture” trade. Keep an eye on inflow/outflow data, as large net‑ inflows can boost the fund’s price relative to NAV, while outflows may deepen discounts—both are key signals for timing entries or exits.