Cabana Target Drawdown 7 ETF (TDSB)

Overview

The Cabana Target Drawdown 7 ETF (TDW) seeks to provide investment results that correspond generally to the performance of the Cabana Target Drawdown 7 Index. The fund employs a rules-based asset allocation strategy designed to limit downside risk by adjusting exposure to equity markets based on market volatility. It focuses on risk management by targeting a specific drawdown level.

Reputation and Reliability

Cabana Asset Management is a registered investment advisor. While relatively newer compared to larger firms, they specialize in risk-managed investment solutions.

Management Expertise

Cabana Asset Management has a team focused on quantitative investment strategies and risk management, aiming to deliver consistent performance within defined risk parameters.

Goal

To provide investment results that correspond generally to the performance of the Cabana Target Drawdown 7 Index, focusing on limiting downside risk.

Investment Approach and Strategy

Strategy: The ETF tracks the Cabana Target Drawdown 7 Index, which adjusts asset allocation based on market volatility to manage drawdown risk. It's a rules-based approach.

Composition The ETF holds a mix of equities and fixed income securities. The allocation between these asset classes changes dynamically based on the volatility of the equity markets.

Market Share: TDW holds a relatively small market share within the broader tactical allocation ETF category.

Total Net Assets (AUM): 46498842

Key Competitors

• AOA
• AOM
• AOR
• AOK

Competitive Landscape

The tactical allocation ETF industry is highly competitive, dominated by larger players like iShares and Vanguard. TDW differentiates itself through its specific drawdown management strategy; however, this niche focus also means it faces challenges in gaining market share compared to broad-based allocation funds. Advantages of TDW include its drawdown focus, potentially providing better risk-adjusted returns in volatile markets. Disadvantages include smaller AUM and higher expense ratios.

Historical Performance: Historical performance data should be sourced from financial data providers. Please see sources below.

Benchmark Comparison: The ETF's performance should be compared to its underlying index, the Cabana Target Drawdown 7 Index, to assess tracking accuracy.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume for TDW is moderate, which could impact the ease of buying or selling large blocks of shares.

Bid-Ask Spread

The bid-ask spread is relatively small but can widen during periods of market volatility.

Market Environment Factors

TDW's performance is influenced by economic growth, interest rates, and equity market volatility. High volatility can trigger shifts in asset allocation, potentially impacting returns.

Growth Trajectory

Growth is dependent on the ETF's ability to attract investors seeking drawdown management and its ability to outperform similar strategies.

Competitive Edge

TDW's competitive edge lies in its defined drawdown management strategy, providing a specific level of downside protection. Its rules-based approach offers transparency and consistency. The focus on limiting losses during market declines can be attractive to risk-averse investors. However, this risk management may also limit potential upside during bull markets. Cabana's expertise in quantitative risk management contributes to its competitive positioning.

Volatility

TDW's volatility should be lower than the overall equity market due to its risk-managed asset allocation strategy.

Market Risk

The ETF is exposed to market risk from its equity holdings and interest rate risk from its fixed income holdings. The drawdown management strategy aims to mitigate these risks.

Ideal Investor Profile

TDW is suitable for risk-averse investors seeking downside protection and a more stable investment experience, especially those nearing retirement or with a low tolerance for market volatility.

Market Risk

TDW is best suited for long-term investors who prioritize capital preservation and are comfortable with potentially lower returns in exchange for reduced risk.

The Cabana Target Drawdown 7 ETF (TDW) offers a risk-managed approach to investing by dynamically adjusting asset allocation to limit downside risk. It is designed for investors with low-risk tolerance. Although the ETF offers downside protection, the total net assets are low relative to competitors. TDW's distinctive drawback management makes it appealing for risk-averse investors with a long-term investment horizon. It aims to deliver consistent returns while minimizing potential losses during market downturns.

Data Sources:

• ETF.com
• Morningstar.com
• Company Fact Sheet for TDW
• www.cabanafunds.com

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.