M&A - Tidal Trust II

Form Type: 497K

Filing Date: 2025-05-30

Corporate Action: Merger

Type: New

Accession Number: 000199937125006878

Filing Summary: The Return Stacked® Bonds & Merger Arbitrage ETF (the Fund) seeks long-term capital appreciation through investments primarily in U.S. Treasury securities and U.S. equities as part of its actively managed Bond strategy and passively managed Merger Arbitrage strategy. The Fund will maintain at least 80% of its net assets in these strategies. The merging operations will involve assessing merger completion probabilities based on various market conditions and statistical models. The document highlights details such as management fees of 0.95%, total annual operating expenses of 0.96%, and the risks involved in the investment strategies, including market risks, bond risks, and leverage risks. The Fund's investment objective is tightly interlinked with the underlying merger arbitrage strategy which is designed to exploit price discrepancies of stocks of companies involved in mergers and acquisitions. Transactions within this strategy focus on deals valued over $50 million with specific criteria for eligibility, such as daily turnover and the maximum estimated deal premium. The underlying strategies highlight a potential maximum leverage of 200% and the structured approach to managing investment risks related to derivatives and market volatility.