NRSH

About NRSH

The Fund uses a “passive management”(or indexing) approach to track the performance, before fees and expenses, of the Index. The Index is based on a proprietary methodologycreated by Aztlan Equity Management, LLC (“Aztlan”) that follows a non-discretionary, rules-based methodology to determinethe universe of potential Index components. The Index is owned, published, and administered by Aztlan, and it is calculated byS&P Dow Jones Indices. What is Nearshoring? Nearshoring is a business strategyinvolving the transfer of some or all of a company’s operations to a nearby country. The strategy offers various benefits,including cost savings, similar time zones, and cultural similarities. In addition, it mitigates some of the risks associatedwith offshoring, like communication and logistic complexities. Aztlan North America NearshoringPrice Return Index The Index will include equity securitieslisted on regulated exchanges in the United States, Canada, and Mexico. Each Index constituent must have amarket capitalization of at least $500 million USD at the time of its initial inclusion in the Index. The Index will be comprised of securitiesof at least 30 companies from three key sub-industries considered to be direct beneficiaries of the nearshoring secular trendin North America (each such company, a “Nearshoring Company”):    ● Industrial Real Estate-Focused Companies: These companies are focused on property used for industrial purposes, such as manufacturing, production, storage, distribution, and research and development. Such companies include real estate investment trusts (“REITs”), property developers (e.g., firms that buy land, finance real estate deals, build or have builders construct projects), property management companies, and real estate brokerage companies.    ● Storage and Warehousing Logistics Companies: These companies are involved in the process of storing goods and managing their movement through a supply chain. This includes a broad range of activities, such as receiving goods, inventory management, tracking, and tracing, storage, handling, and packing and order fulfillment.    ● Transportation Logistics Companies: These companies manage the movement of goods from one location to another. This can involve various modes of transportation, including trucking, rail, air, and sea. The initial universe for the Indexincludes companies that, according to Global Industry Classification Standard (“GICS”) classifications, belong toone of the following industries or sub-industries: (a) Industrial REITs, (b) Office REITs, (c) Real Estate Management & Development,(d) Specialized REITs, (e) Ground Transportation, (f) Air Freight & Logistics, (g) Transportation Infrastructure, or (h) MarineTransportation. The initial universe will also be limited to companies that Aztlan’s research has determined will have apecuniary benefit from nearshoring activities across North America. The Index is rebalanced annually at which time the initialuniverse for the Index is reconstituted based on GICS classifications at the time of rebalance. From the initial universe, the Indexuses a proprietary quantitative fundamental model to rank stocks based on the following five equally weighted fundamental factors:Value, Cash Flow, Growth, Quality, and Estimate Surprise. The Index analyzes each of the factors based on publicly available companyinformation. Please see the “Additional Information about the Index” section of the Fund’s Prospectusfor a description of each of the foregoing factors and how the Index calculates them. The Index includes the top 30 rankedstocks. Individual stock weights in the Index are set as follows are based on the 30-day average daily traded volume (“ADTV”)for a particular company’s stock, as follows:    ● If ADTV is less than $1 million USD, then stock weight = 0.50% of the Fund’s portfolio.   ● If ADTV is greater than $1 million USD and less than $5 million USD, then stock weight = 1.0% of the Fund’s portfolio.   ● If ADTV is greater than $5 million USD and less than $10 million USD, then stock weight = 5.0% of the Fund’s portfolio.   ● If ADTV is greater than $10 million USD, then stock weight = no set limit.  The Index will determine each stock’sweight in the Index based on mathematical calculations to ensure the Index’s constituents in the aggregate total 100%. Pleasesee the “Additional Information about the Index” section of the Fund’s Prospectus for a description ofthe calculations. The Fund’s Investment Strategy The Fund will invest all, or substantiallyall, of its assets in the component securities that make up the Index (the “Index Components”). Undernormal circumstances, at least 80% of the Fund’s net assets, plus the amount of any borrowings for investment purposes, willbe invested in equity securities of Nearshoring Companies that are component securities of the Index and that are incorporated in orthat are listed in the United States, Canada, or Mexico. The 80% policy has been adopted as a non-fundamental investment policy andmay be changed without shareholder approval upon approval by the Board of Trustees (the “Board”) of Tidal ETF Trust (the“Trust”) and 60 days’ written notice to shareholders. The Fund will generally use a “replication”strategy to achieve its investment objective, meaning it generally will invest in all of the Index Components. However, the Fundmay use a “representative sampling” strategy, meaning it may invest in a sample of the securities in the Index whoserisk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole, whenthe Adviser believes it is in the best interests of the Fund (e.g., when replicating the Index involves practical difficultiesor substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legalrestrictions or limitations that apply to the Fund but not to the Index). The Fund may invest in securities orother investments not included in the Index, but which the Adviser believes will help the Fund track the Index. For example, theFund may invest in securities that are not components of the Index to reflect various corporate actions and other changes to theIndex (such as reconstitutions, additions, and deletions). To the extent the Index concentrates(i.e., holds more than 25% of its total assets in the securities of a particular industry or group of related industries), theFund will concentrate its investments to approximately the same extent as the Index. The Fund is considered to be non-diversified,which means that it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number ofissuers than if it were a diversified fund.