Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 12/11/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
18.7%
1 yr return
21.3%
3 Yr Avg Return
3.8%
5 Yr Avg Return
8.8%
Net Assets
$35.8 M
Holdings in Top 10
101.8%
Expense Ratio 2.63%
Front Load N/A
Deferred Load N/A
Turnover 27.00%
Redemption Fee N/A
Standard (Taxable)
$2,500
IRA
$1,000
Fund Type
Open End Mutual Fund
Name
As of 12/11/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Using the sub-advisers proprietary Defined Risk Strategy (DRS) to select the Funds investments, the Fund seeks to achieve its investment objective by investing directly, or indirectly in:
● | capitalization-weighted U.S. large capitalization ETFs that invest in equity securities that are represented in the S&P 500 Index, |
● | exchange-traded long-term put options on the S&P 500 Index for hedging purposes, and |
● | exchange-traded put and call options on various equity indices to generate additional returns. |
The DRS seeks to provide risk-managed growth of capital by matching or exceeding the long-term performance of the stock market while seeking to minimize the traditional losses incurred during bear markets. The Fund invests primarily in equity securities of large capitalization (over $10 billion) U.S. companies directly or through ETFs. The sub-adviser executes ETF trades through an exchange rather than trading directly with a fund. The Fund differs from other funds managed by the adviser and sub-adviser by focusing on growth over protection. The Fund purchases slightly out-of-the-money put options, i.e., put options where the current price of the underlying stock is above the strike price of the option, thus spending less on hedging. This small difference is spent on additional market exposure to increase growth potential.
The DRS philosophy is based upon the sub-advisers research indicating that market timing and/or stock selection is extremely difficult, may produce volatile returns and that asset allocation is limited in its risk reduction properties. Using DRS, the sub-adviser seeks to define risk by seeking to protect against large losses by hedging equity ETFs through investments in protective long-term S&P 500 Index put options. Additionally, the sub-adviser seeks to increase returns by buying and selling call and put options on several indices using hedging strategies. A call option is a contract that entitles the purchaser to receive from the seller a cash payment equal to the amount of any appreciation in the value of the reference index over a fixed price as of the valuation date of the option. A put option is a contract that entitles the purchaser to receive from the seller a cash payment equal to the amount of any depreciation in the value of the reference index below a fixed price as of the valuation date of the option. The Fund may be invested 75-95% in the iShares Core S&P 500 ETF or SPDR S&P 500 ETF, or a combination of the two.
Defined Risk Strategy
The DRS was created in 1997 by Randy Swan, President of the Adviser and sub-adviser. The objective of the DRS is to provide risk-managed growth of capital by offering a strategy that seeks to match or exceed the long-term performance of the stock market while seeking to minimize the traditional losses incurred during bear markets. The DRS philosophy is based upon the sub-advisers research indicating that market timing and/or stock selection is extremely difficult and that asset allocation is limited in its risk reduction properties.
Stock Selection
The Fund invests 75-95% of its assets in U.S. large capitalization ETFs. This underlying position is hedged with long-term put options.
Hedging Process
The sub-adviser applies a put hedging strategy to hedge the Funds equity exposure. The Fund invests in long-term put options (referred to as paying a premium) that gives the Fund the right to sell a security or index at a set (strike) price or sell the long-term put option on an option exchange. The put strategy is executed using exchange-traded S&P 500 Index put options to hedge the portfolio and to reduce volatility. The put strategy seeks to limit downside loss. Generally, S&P 500 Index put options have an inverse relationship to the S&P 500 Index and its sector-specific constituents.
Period | SDACX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 18.7% | -2.8% | 240.8% | 16.60% |
1 Yr | 21.3% | -4.3% | 140.6% | 38.26% |
3 Yr | 3.8%* | -8.3% | 18.3% | N/A |
5 Yr | 8.8%* | -5.0% | 17.3% | N/A |
10 Yr | N/A* | -4.6% | 13.2% | N/A |
* Annualized
Period | SDACX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | -11.6% | -34.1% | 904.0% | 19.37% |
2022 | -18.7% | -28.6% | 438.4% | 6.36% |
2021 | 21.8% | -93.5% | 8.2% | N/A |
2020 | 10.3% | -38.9% | 19.8% | N/A |
2019 | 21.2% | -10.9% | 12.8% | N/A |
Period | SDACX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 18.7% | -2.7% | 244.0% | 18.18% |
1 Yr | 21.3% | -4.3% | 140.6% | 34.78% |
3 Yr | 3.8%* | -8.3% | 18.3% | N/A |
5 Yr | 8.8%* | -5.4% | 17.3% | N/A |
10 Yr | N/A* | -4.6% | 13.2% | N/A |
* Annualized
Period | SDACX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 15.1% | -34.1% | 904.0% | 19.37% |
2022 | -18.7% | -5.9% | 438.4% | 6.36% |
2021 | 21.8% | -81.2% | 8.2% | N/A |
2020 | 10.9% | -29.0% | 19.8% | N/A |
2019 | 23.1% | -10.9% | 12.8% | N/A |
SDACX | Category Low | Category High | SDACX % Rank | |
---|---|---|---|---|
Net Assets | 35.8 M | 25 | 17.4 B | 56.55% |
Number of Holdings | 18 | 2 | 508 | 51.53% |
Net Assets in Top 10 | 36.1 M | -6.66 M | 5.12 B | 37.02% |
Weighting of Top 10 | 101.76% | 11.3% | 100.0% | 13.86% |
Weighting | Return Low | Return High | SDACX % Rank | |
---|---|---|---|---|
Stocks | 89.42% | -3.92% | 100.76% | 68.70% |
Cash | 5.37% | -0.76% | 100.29% | 27.10% |
Other | 5.21% | 0.00% | 45.92% | 83.21% |
Preferred Stocks | 0.00% | 0.00% | 3.08% | 79.77% |
Convertible Bonds | 0.00% | 0.00% | 20.91% | 80.92% |
Bonds | 0.00% | 0.00% | 97.96% | 80.92% |
Weighting | Return Low | Return High | SDACX % Rank | |
---|---|---|---|---|
Technology | 26.64% | 0.00% | 44.43% | 17.23% |
Healthcare | 13.38% | 0.00% | 25.91% | 28.15% |
Financial Services | 12.91% | 0.00% | 29.60% | 81.51% |
Consumer Cyclical | 12.36% | 0.00% | 19.02% | 29.41% |
Communication Services | 10.16% | 0.00% | 21.22% | 65.55% |
Industrials | 8.05% | 1.41% | 43.91% | 68.07% |
Consumer Defense | 6.30% | 0.00% | 22.87% | 34.03% |
Real Estate | 2.77% | 0.00% | 9.74% | 71.85% |
Energy | 2.67% | 0.00% | 69.54% | 82.77% |
Utilities | 2.50% | 0.00% | 13.35% | 35.29% |
Basic Materials | 2.26% | 0.00% | 60.58% | 70.59% |
Weighting | Return Low | Return High | SDACX % Rank | |
---|---|---|---|---|
US | 89.42% | -3.89% | 100.00% | 53.44% |
Non US | 0.00% | -2.17% | 99.33% | 63.74% |
SDACX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 2.63% | 0.20% | 6.78% | 4.53% |
Management Fee | 1.00% | 0.20% | 1.75% | 81.34% |
12b-1 Fee | 1.00% | 0.00% | 1.00% | 97.70% |
Administrative Fee | N/A | 0.02% | 0.28% | N/A |
SDACX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 4.75% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 1.00% | N/A |
SDACX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
SDACX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 27.00% | 0.00% | 456.80% | 36.16% |
SDACX | Category Low | Category High | SDACX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.00% | 0.00% | 3.76% | 82.16% |
SDACX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Annual | Annually | Monthly | Annually |
SDACX | Category Low | Category High | SDACX % Rank | |
---|---|---|---|---|
Net Income Ratio | -0.85% | -2.54% | 14.24% | 63.11% |
SDACX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Dec 27, 2023 | $3.525 | CapitalGainLongTerm |
Dec 29, 2020 | $0.072 | OrdinaryDividend |
Dec 26, 2019 | $0.073 | OrdinaryDividend |
Dec 26, 2019 | $0.050 | CapitalGainShortTerm |
Dec 26, 2019 | $0.073 | CapitalGainLongTerm |
Start Date
Tenure
Tenure Rank
Dec 27, 2018
3.43
3.4%
Rob manages and implements the Swan Defined Risk Strategy as a Portfolio Manager, including investment management and trading as well as development and maintenance of proprietary technology, enabling Swan to scale and execute the DRS across multiple platforms and thousands of accounts. He also provides daily oversight of Swan operations as COO. Prior to joining Swan, Rob’s previous positions have ranged from flight-test engineering and computer aided design software development at the Boeing Company, to director of operations and part owner of Object Publisher Web Services, the leading web service automation provider for custom brochure and catalog publishing. His analytical, technical, and computing skills have been developed and applied since 1988 in production software development, computer automation, process design and standardization, business and technical process modeling, and aerodynamics engineering.
Start Date
Tenure
Tenure Rank
Dec 27, 2018
3.43
3.4%
Randy Swan, President, is the founder of Swan Capital Management, LLC and Swan Global Management, LLC. Oversees the team that runs all of the firm's investment activities. Before starting the Sub-Adviser in 2014, the Adviser in 2012 and Swan Global Investments, LLC in 1997, Randy was a KPMG senior manager working in their Financial Services Group, primarily with insurance companies and risk managers. It was here where Randy conceived Swan’s investment strategy of using the options market to manage portfolio risk, similar to how the insurance companies were managing their insurance portfolios.
Start Date
Tenure
Tenure Rank
Dec 27, 2018
3.43
3.4%
Chris is the Director of Risk Management and Chief Market Technician at Swan and assists in the daily operations and trading for all Defined Risk Strategy investments and positions. Before joining Swan, Chris started his career as an investment banking analyst before transitioning to the trading pits of Chicago. In 1996, Chris became a market-maker for Wolverine Trading, LLC where he worked on the floor of the Chicago Mercantile Exchange, trading options on the S&P 500 futures index, and on the Pacific Stock Exchange, trading options on Microsoft. In April 1999 as Senior Trader, Chris joined an options broker-dealer (STC, LLC) founded and managed by Anthony Saliba. During that same period, he also served as lead instructor for the International Trading Institute Ltd., teaching option strategies and risk management techniques to market makers and traders from around the world. In January 2002, Chris joined CAZ Investments in Houston, TX, where he held the position of Senior Vice President. He re-joined Mr. Saliba in a new venture, Saliba Portfolio Management, as Senior Portfolio Manager and Chief Portfolio Strategist in January 2004 and ultimately became the Director of Trading Operations in January 2011.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 19.77 | 3.61 | 5.67 |
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