6/21/2022. The Board of Trustees (the “Board”) of Collaborative Investment Series Trust (the “Trust”) has determined that it is in the best interests of shareholders to liquidate the NextGen Trend and Defend ETF (a “Fund”), and a series of the Trust, following a recommendation by the Funds’ investment adviser, NextGen ETFs, LLC. The Board has determined to liquidate the Fund with the liquidation payment to shareholders expected to take place on or about June 29, 2022 (“Liquidation Date”).

After the close of business on June 23, 2022, each Fund no longer will accept creation orders. The last day of trading on the CBOE BZX Exchange, will be June 23, 2022. Shareholders should be aware that while a Fund is preparing to liquidate, it will not be pursuing its stated investment objective or engaging in any business activities except for the purposes of winding up its business and affairs, preserving the value of their assets, paying its liabilities, and distributing its remaining assets to shareholders.

Shareholders may sell their holdings of a Fund on its Exchange until market close on June 23, 2022 and may incur typical transaction fees from their broker-dealer. The Fund’s shares will no longer trade on its Exchange after market close on June 23, 2022, and the shares will be subsequently delisted. Shareholders who do not sell their shares of the Fund before market close on June 23, 2022 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, in the cash portion of their brokerage accounts, on or about the Liquidation Date.

Shareholders generally will recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares. You may wish to consult your tax advisor about your particular situation. If you have questions or need assistance, please contact your financial advisor directly or a
Fund at (866) 505-1107. This Supplement and the Prospectus dated June 17, 2022, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information have been filed with the Securities and Exchange Commission and are incorporated by reference and can be obtained without charge by calling the Fund at (866) 904-0406.

Distributor: Foreside Fund Services, LLC
Source: Collaborative Investment Series Trust
For further information: Chuck Brokop at chuck@nextgenetfs.com

TRDF

Trend and Defend

Liquid Alternative Long/Short ETF

Simplify your hedged equity exposure with the first active long/short S&P 500 ETF
Tail Risk is when the stock market falls in value by more than what is expected over a period of time. The market crash of 2008, and Covid-19 are examples of “Tail Risk” events.

Strategy Characteristics

TRDF is not for everyone. The fund positioning ranges from 100% long the S&P 500 to 100% short the S&P 500 and should not be confused with a market neutral long/short strategy. Here are six key considerations to help you determine if you’re in the right place

How It Works

TRDF was designed for investors in US Equities that seek a portfolio strategy with less upside, but substantially less downside during market corrections and tail risk events like the COVID crash and the 2008 Financial Crisis.
We trend follow the S&P 500 Index using leading and confirming trend signals with shorter lookback periods than other trend following ETFs.
When there is a structural shift in volatility (measured by the Cboe Volatility Index (VIX)), the strategy shorts the S&P 500 index by purchasing a highly liquid inverse-S&P 500 ETF.
We overlay the trend following and volatility signals with a probability measure to reduce false-positive trade signals.
We follow a 5% stop loss rule on every trade, rotating the portfolio into treasury bills until a new trade signal is established.

Portfolio Positioning

Nobody can time the market. We are not market timers, we are asset allocators that seek to outperform during volatile bear markets, and underperform during low-Volatility bull markets.

When we are Short

TRDF will short the S&P 500 index when our trend signal is bearish, volatility is structurally higher relative to recent price data, and the odds of a signal reversal are low.

When we are Long

TRDF will be long the S&P 500 index when our trend signal is bullish, volatility is declining, and the odds of a signal reversal are low.

TRDF Characteristics

Nobody can time the market. We are not market timers, we are asset allocators that seek to outperform during volatile bear markets, and underperform during low-Volatility bull markets.

Negative Downside Capture

We seek to have a negative downside capture to large-cap US Equities during significant market selloffs and tail-risk events.

Positive Upside Capture

We seek to have a positive upside capture to Large Cap US Equities over long term (5+ year) investment periods.
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Portfolio Positioning

Nobody can time the market. We are not market timers, we are asset allocators that seek to outperform during volatile bear markets, and underperform during low-Volatility bull markets.

When we are Short

TRDF will short the S&P 500 index when our trend signal is bearish, volatility is structurally higher relative to recent price data, and the odds of a signal reversal are low.

When we are Long

TRDF will be long the S&P 500 index when our trend signal is bullish, volatility is declining, and the odds of a signal reversal are low.

TRDF Characteristics

Nobody can time the market. We are not market timers, we are asset allocators that seek to outperform during volatile bear markets, and underperform during low-Volatility bull markets.

Negative Downside Capture

We seek to have a negative downside capture to large-cap US Equities during significant market selloffs and tail-risk events.

Positive Upside Capture

We seek to have a positive upside capture to Large Cap US Equities over long term (5+ year) investment periods.
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US Stock Market Crash Coming?!

Most Likely. The Problem is we have no clue when. Nobody does. There is always “the next big market crisis” on the horizon, but trying to predict how, when, and the magnitude is a fools game. There are, however, leading indicators we can monitor to provide us insights into the state of markets and the economy from an empirical, evidence-based standpoint:
0 %

Market Cap to GDP

Historical High: 199% (current)
Current Value %Rank: 100%
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Case-Schiller PE

Historical High: 44.2 (Dec 1999)
Current Value %Rank: 99%
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US Debt to GDP

Historical High: 210% (current)
Current Value %Rank: 100%
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US Inflation Rate

Hiitorical High: 23.7% (Jun 1920)
Current Value %Rank: 85%

US Fiscal Deficit (trillions)

Hiitorical High: $3.3t (2020)
Current Value %Rank: 100%
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M1 Money Supply (%GDP)

Historical High: 80% (current)
Current Value %Rank: 100%

Why Invest Now?

Based on the empircal evidence, equity markets are significantly overvalued in the US. But our interpretation of “why” markets are going up or down is absent from our investment process.
TRDF stays invested despite this irrational exuberance we are witnessing in markets, and it shorts the US Equity market when the math shows a more-likely-than-not correction. Unknowns like the Fed’s policies, political events, and natural disasters are not captured in fundamentals, but price action captures everything.
If markets continue their upward trajectory, great. If markets correct, great. There are periods in history where trend following made more sense than passive investing, and we believe the current environment supports trend following over passive investing.

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