EA Series Trust files for a StockSnips fund that would rotate sector ETFs

EA Series Trust on Oct. 13 filed an amendment to its registration statement with the U.S. Securities and Exchange Commission proposing the StockSnips AI Sector Sentiment Leaders ETF, a fund that would rotate sector ETFs. The prospectus is marked subject to completion and dated that day. The fund has not commenced operations, and the filing is not an approval to sell shares.

The trust asked for the amendment to become effective 75 days after the filing, but that requested date is not a listing date, and a later amendment can still move it.

Same managers, a fund of sector ETFs

Ravindra Koka, Robert Lindenberg and Leandro Lopez-Leon would manage the new fund. They already run the StockSnips AI-Powered Sentiment US All Cap ETF CNEWZ, and have since its inception in April 2024, that fund's May 31, 2026 summary prospectus says. Empowered Funds, doing business as EA Advisers, would be the adviser. Stock Snips, which already sub-advises that fund, would be the sub-adviser.

CNEWZ selects U.S.-listed stocks with what its prospectus calls a "News Media Sentiment Signal." The proposal, which seeks long-term capital appreciation, would put the same sub-adviser on a fund of funds that invests substantially all of its assets in ETFs holding companies in particular sectors, with a proprietary model setting the weights.

The stock fund remains a separate series, charging 0.75%, with $21.2 million in assets as of Oct. 16. The new prospectus does not change that fee or convert it into a sector fund.

The filing says the model allocates among sectors "using a proprietary sentiment signal and recent price trends." The prospectus says that signal is drawn with natural language processing from news articles, blogs and other text, and that the signal, a sector momentum signal and the portfolio's current weights are the principal inputs.

The prospectus says the model is trained "to maximize short-term, risk-adjusted portfolio return, net of a deduction for portfolio drawdowns," a penalty for stretches when the portfolio's value falls, in furtherance of the long-term objective.

No sector would have a fixed minimum or maximum weight. The prospectus says the assets may at times be concentrated in a single sector, and in a related group of industries, when the model calls for it, so one sector could dominate. The model's training is designed to discourage that concentration, without ruling it out.

The fund would also be non-diversified under the Investment Company Act of 1940, which would let it hold a larger share of its assets in a single issuer than a diversified fund may hold.

The model would generally be retrained, and the portfolio rebalanced, at least twice a quarter, the schedule the prospectus treats as normal. The sub-adviser may wait if the gap between target and current weights does not justify the trading cost, or move sooner if it does. Only in exceptional circumstances could the managers set the model aside and direct some or all of the assets to cash, short-term U.S. Treasury obligations, or a broad-based U.S. equity ETF.

What a buyer would pay

The ticker and the exchange are blank, and so are the management fee, other expenses, acquired-fund fees and the total.

The fund would own other ETFs, and the prospectus says it would indirectly pay a proportional share of those funds' operating expenses and management fees. Shareholders would bear that cost on top of this fund's own charge. With both figures left blank, the filing does not show an all-in cost.