Ninepoint energy ETFs take effect after a two-year wait and a July rewrite

Two Ninepoint energy series that Tidal Trust III added to its registration in August 2024 now have an effective prospectus, after a July rewrite that renamed one fund and recast its strategy around North American energy independence. An effective prospectus is permission to offer the shares, not a listing.

The paper, Post-Effective Amendment No. 202, is a Rule 485(b) filing, the form that lets an already-reviewed prospectus take effect on a date the registrant names. Tidal filed it Friday, September 4, and named September 7. The trust said the amendment responds to Securities and Exchange Commission staff comments on the two series and makes other changes the rule allows.

Under the prospectus now taking effect, Ninepoint North American Energy Independence ETF, which seeks long-term growth of capital and would generally own 25 to 50 North American energy stocks, would invest at least 80% of net assets, under normal circumstances, in issuers economically tied to Canada, Mexico, or the United States that get at least 50% of revenue or book value from oil, gas, coal, uranium, power generation, and energy services and infrastructure. Ninepoint scores names on North American exposure, strategic importance, and reliability, and expects the book to open roughly 50% to 60% upstream producers, 15% to 25% midstream infrastructure, and 10% to 20% nuclear and uranium, generally in companies of at least $5 billion in market capitalization.

A July 9 amendment under Rule 485(a) made material changes to those principal investment strategies and dropped the Ninepoint Energy ETF name. As first filed in August 2024, the sleeve had aimed at energy companies worldwide. The income series kept its name. Friday’s filing is the 485(b) follow-through on both.

Ninepoint Energy Income ETF, which would write covered calls on energy equities, seeks income and capital appreciation. It would invest primarily in North American energy companies, and for 2026 it aims for distributions of at least 7% annualized based on net asset value as of December 31, 2025, a target the prospectus does not guarantee. It has its own 80% test in energy companies and the covered-call strategy, and would seek monthly cash distributions.

Shareholders would pay a unitary management fee of 0.65% a year in the Energy Independence series and 0.95% in the Energy Income series. Under that contract, the adviser will pay, or require a sub-adviser to pay, ordinary fund expenses, with the usual exclusions for items such as interest, taxes, and brokerage. The 0.65% fee is in line with First Trust Energy AlphaDEX Fund FXN, which holds U.S. energy stocks, at 0.63%; the 0.95% income fee is above Global X MLP & Energy Infrastructure Covered Call ETF MLPD at 0.60%.

Tidal Investments LLC is the adviser. Ninepoint Partners LP, of Toronto, is the sub-adviser. Both series name NYSE Arca as the listing venue. The growth series would trade as ENRG, a ticker last used by the SoFi Smart Energy ETF, which ceased trading in February 2024; the income series would trade as NPEI. The prospectus dated September 7 states that the funds have not commenced operations, that no shares are outstanding, and that no financial highlights are shown.