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Trending ETFs

Swan Defined Risk Emerging Markets Fund

mutual fund
SDFIX
Payout Change
Pending
Price as of:
$9.25 +0.01 +0.11%
primary theme
N/A
SDFIX (Mutual Fund)

Swan Defined Risk Emerging Markets Fund

Payout Change
Pending
Price as of:
$9.25 +0.01 +0.11%
primary theme
N/A
SDFIX (Mutual Fund)

Swan Defined Risk Emerging Markets Fund

Payout Change
Pending
Price as of:
$9.25 +0.01 +0.11%
primary theme
N/A

Name

As of 06/14/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$9.25

$26.6 M

0.84%

$0.08

1.75%

Vitals

YTD Return

2.8%

1 yr return

4.6%

3 Yr Avg Return

-1.7%

5 Yr Avg Return

1.1%

Net Assets

$26.6 M

Holdings in Top 10

98.7%

52 WEEK LOW AND HIGH

$9.2
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 1.75%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 6.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$100,000

IRA

$100,000


Fund Classification

Fund Type

Open End Mutual Fund


Name

As of 06/14/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$9.25

$26.6 M

0.84%

$0.08

1.75%

SDFIX - Profile

Distributions

  • YTD Total Return 2.8%
  • 3 Yr Annualized Total Return -1.7%
  • 5 Yr Annualized Total Return 1.1%
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio 0.20%
DIVIDENDS
  • Dividend Yield 0.8%
  • Dividend Distribution Frequency None

Fund Details

  • Legal Name
    Swan Defined Risk Emerging Markets Fund
  • Fund Family Name
    Swan
  • Inception Date
    Dec 30, 2014
  • Shares Outstanding
    N/A
  • Share Class
    I
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Randy Swan

Fund Description

Using the sub-adviser’s proprietary Defined Risk Strategy (“DRS”) to select the Fund’s investments, the Fund seeks to achieve its investment objective by investing directly, or indirectly through exchange-traded funds (“ETFs”), in:

  • foreign (including emerging markets) equity securities, including American depository receipts (“ADRs”), of any market capitalization,
  • exchange-traded long-term put options on U.S. exchanges for hedging purposes, and
  • buying and selling exchange-traded put and call options on various ETFs and foreign 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. Under normal market conditions, the Fund invests at least 80% of its assets (defined as net assets plus any borrowing for investment purposes) in securities economically tied to emerging markets. Securities considered to be economically tied to emerging market countries include, without limitation: (1) an issuer organized under the laws of or maintaining a principal office or principal place(s) of business in one or more emerging markets; (2) an issuer of securities that are principally traded in one or more emerging markets; (3) an issuer that derives or is currently expected to derive 50% or more of its total sales, revenues, profits, earnings, growth, or another measure of economic activity from, the production or sale of goods or performance of services or making of investments or other economic activity in, one or more emerging markets, or that maintains or is currently expected to maintain 50% or more of its employees, assets, investments, operations, or other business activity in one or more emerging markets; (4) a governmental or quasi-governmental entity of an emerging market; (5) any other issuer that the sub-adviser believes may expose the Fund’s assets to the economic fortunes and risks of emerging markets; or (6) options on securities of any of the above described issuers. The sub-adviser may consider an issuer to be economically tied to emerging markets even though it may be based in a developed market such as the United States. Emerging markets are generally those with a less-developed economy and per-capital income significantly lower than the U.S. Emerging market countries are those represented in the MSCI Emerging Markets Index. Representative emerging market countries include China, Brazil, Russia, India and Taiwan.

The sub-adviser executes ETF trades through an exchange rather than trading directly with a fund. The ETFs in which the Fund invests may also invest in small and medium capitalization companies.

The DRS philosophy is based upon the sub-adviser’s 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. Using DRS, the sub-adviser seeks to “define risk” by seeking to protect against large losses by hedging the equity securities in the Fund’s portfolio through investments in a protective long-term index or ETF put options. Additionally, the sub-adviser seeks to increase returns by buying and selling call and put options on several ETFs or 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.

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 without the traditional losses incurred during bear markets. The DRS philosophy is based upon the sub-adviser’s research indicating that market timing and/or stock selection is extremely difficult and that asset allocation is limited in its risk reduction properties.

Hedging Process

The sub-adviser applies a put hedging strategy to hedge the Fund’s 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 index and ETF put options to hedge the portfolio and to reduce volatility. The put strategy seeks to limit downside loss. Generally, index and ETF put options have an inverse relationship to the applicable underlying index or security.

Option Writing

To generate additional returns, the sub-adviser buys and sells short-term (generally 1-3 month) put and call options on (i) ETFs, (ii) foreign equity indices, (iii) foreign equity securities, and (iv) futures on a regular basis. Additionally, the sub-adviser regularly engages in various spread option strategies. Spread option strategies involve, for example, selling a 1-month call option while buying a 2-month call option.

Rebalancing

The sub-adviser may rebalance the portfolio to avoid excessive exposure to one economic sector or foreign country/region. Long-term protective put options are typically traded annually to protect capital and/or allow for profit potential by re-establishing a current-market strike price which depends on whether or not the market has increased or decreased.

The sub-adviser intends on having very little portfolio turnover since most of the equity portfolio is held indefinitely. Written options are bought back when the sub-adviser believes they present an unfavorable risk and reward profile. Purchased options are sold when the sub-adviser believes they present an unfavorable risk and reward profile or when more attractive investments are available.

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SDFIX - Performance

Return Ranking - Trailing

Period SDFIX Return Category Return Low Category Return High Rank in Category (%)
YTD 2.8% -2.8% 240.8% 86.96%
1 Yr 4.6% -4.3% 140.6% 73.91%
3 Yr -1.7%* -8.3% 18.3% 96.15%
5 Yr 1.1%* -5.0% 17.3% 83.05%
10 Yr N/A* -4.6% 13.2% N/A

* Annualized

Return Ranking - Calendar

Period SDFIX Return Category Return Low Category Return High Rank in Category (%)
2023 5.0% -34.1% 904.0% 60.36%
2022 -10.6% -28.6% 438.4% 94.80%
2021 -1.8% -93.5% 8.2% 60.00%
2020 3.4% -38.9% 19.8% 0.78%
2019 -1.8% -10.9% 12.8% 40.78%

Total Return Ranking - Trailing

Period SDFIX Return Category Return Low Category Return High Rank in Category (%)
YTD 2.8% -2.7% 244.0% 87.75%
1 Yr 4.6% -4.3% 140.6% 70.87%
3 Yr -1.7%* -8.3% 18.3% 94.23%
5 Yr 1.1%* -5.4% 17.3% 82.20%
10 Yr N/A* -4.6% 13.2% N/A

* Annualized

Total Return Ranking - Calendar

Period SDFIX Return Category Return Low Category Return High Rank in Category (%)
2023 5.9% -34.1% 904.0% 60.36%
2022 -9.3% -5.9% 438.4% 95.38%
2021 -1.7% -81.2% 8.2% 71.03%
2020 5.0% -29.0% 19.8% 0.78%
2019 4.2% -10.9% 12.8% 56.31%

NAV & Total Return History


SDFIX - Holdings

Concentration Analysis

SDFIX Category Low Category High SDFIX % Rank
Net Assets 26.6 M 25 17.4 B 76.03%
Number of Holdings 5 2 508 56.11%
Net Assets in Top 10 26.2 M -6.66 M 5.12 B 65.27%
Weighting of Top 10 98.66% 11.3% 100.0% 1.89%

Top 10 Holdings

  1. ISHA CORE EM 92.16%
  2. EEM US 12/19/25 P40 6.44%
  3. FRST AM-GV OB-X 0.32%
  4. EEM US 06/21/24 C44.5 -0.10%
  5. EEM US 06/21/24 P38.5 -0.15%

Asset Allocation

Weighting Return Low Return High SDFIX % Rank
Stocks
92.16% -3.92% 100.76% 55.34%
Other
6.19% 0.00% 45.92% 46.56%
Cash
1.65% -0.76% 100.29% 39.69%
Preferred Stocks
0.00% 0.00% 3.08% 2.29%
Convertible Bonds
0.00% 0.00% 20.91% 35.88%
Bonds
0.00% 0.00% 97.96% 38.93%

Stock Sector Breakdown

Weighting Return Low Return High SDFIX % Rank
Technology
21.45% 0.00% 44.43% 73.95%
Financial Services
21.01% 0.00% 29.60% 10.50%
Consumer Cyclical
12.03% 0.00% 19.02% 7.98%
Communication Services
9.81% 0.00% 21.22% 10.92%
Basic Materials
9.67% 0.00% 60.58% 10.08%
Industrials
6.41% 1.41% 43.91% 89.92%
Consumer Defense
5.52% 0.00% 22.87% 80.25%
Energy
4.51% 0.00% 69.54% 13.03%
Healthcare
4.48% 0.00% 25.91% 96.22%
Utilities
2.62% 0.00% 13.35% 84.87%
Real Estate
2.47% 0.00% 9.74% 23.53%

Stock Geographic Breakdown

Weighting Return Low Return High SDFIX % Rank
US
92.16% -3.89% 100.00% 97.33%
Non US
0.00% -2.17% 99.33% 1.15%

SDFIX - Expenses

Operational Fees

SDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.75% 0.20% 6.78% 28.81%
Management Fee 1.00% 0.20% 1.75% 74.63%
12b-1 Fee 0.00% 0.00% 1.00% 18.39%
Administrative Fee N/A 0.02% 0.28% 43.94%

Sales Fees

SDFIX 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

Trading Fees

SDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

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.

SDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 6.00% 0.00% 456.80% 46.88%

SDFIX - Distributions

Dividend Yield Analysis

SDFIX Category Low Category High SDFIX % Rank
Dividend Yield 0.84% 0.00% 3.76% 36.80%

Dividend Distribution Analysis

SDFIX Category Low Category High Category Mod
Dividend Distribution Frequency None Annually Monthly Annually

Net Income Ratio Analysis

SDFIX Category Low Category High SDFIX % Rank
Net Income Ratio 0.20% -2.54% 14.24% 19.67%

Capital Gain Distribution Analysis

SDFIX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

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SDFIX - Fund Manager Analysis

Managers

Randy Swan


Start Date

Tenure

Tenure Rank

Dec 30, 2014

7.42

7.4%

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.

Robert Swan


Start Date

Tenure

Tenure Rank

Nov 01, 2016

5.58

5.6%

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.

Christopher Hausman


Start Date

Tenure

Tenure Rank

Nov 02, 2018

3.58

3.6%

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.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.04 19.77 3.61 5.67