Cabana Target Drawdown 10 ETF (TDSC)

Overview

The Cabana Target Drawdown 10 ETF (TDWN) seeks to provide long-term capital appreciation while limiting downside risk by employing a proprietary tactical asset allocation strategy. The fund primarily invests in other ETFs representing various asset classes, adjusting allocations based on market conditions to manage drawdown risk. It targets a maximum drawdown of 10% over rolling one-year periods.

Reputation and Reliability

Cabana Asset Management is a relatively smaller but established asset manager known for its risk-managed investment strategies.

Management Expertise

Cabana Asset Management has a team of investment professionals with expertise in tactical asset allocation and risk management.

Goal

To provide long-term capital appreciation while limiting downside risk to a maximum drawdown of 10%.

Investment Approach and Strategy

Strategy: The fund utilizes a tactical asset allocation strategy, shifting investments among different asset classes based on market conditions.

Composition The ETF primarily invests in a portfolio of other ETFs, representing various asset classes such as US equities, international equities, fixed income, and alternative assets.

Market Share: TDWN's market share within the risk-managed ETF space is relatively small, reflecting its more niche approach.

Total Net Assets (AUM): 21040000

Key Competitors

• AGFiQ US Market Neutral Anti-Beta ETF (BTAL)
• Simplify US Equity PLUS Downside Convexity ETF (SPD)
• Pacer Trendpilot US Large Cap ETF (PTLC)

Competitive Landscape

The competitive landscape is characterized by a mix of larger, well-established ETFs and smaller, specialized funds like TDWN. TDWN's drawdown target and tactical approach offer a differentiated value proposition, but it faces competition from funds with broader appeal and larger marketing budgets. It must compete with funds offering different risk/return profiles to investors.

Historical Performance: Historical performance data should be gathered from sources like Morningstar, ETF.com, and TDWN's website. Performance varies with market conditions.

Benchmark Comparison: TDWN's benchmark should be a composite index representing its target asset allocation. Performance relative to the benchmark will indicate the effectiveness of its tactical asset allocation strategy.

Expense Ratio: 0.95

Average Trading Volume

The average daily trading volume for TDWN is relatively low, which may impact execution costs for larger trades.

Bid-Ask Spread

The bid-ask spread can fluctuate but tends to be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Economic indicators, interest rate changes, equity market volatility, and investor sentiment all influence the performance of TDWN's underlying asset classes and its tactical allocation decisions.

Growth Trajectory

The growth trajectory is dependent on its ability to attract assets by demonstrating consistent risk-adjusted performance and effective drawdown management.

Competitive Edge

TDWN's competitive advantage lies in its focus on managing drawdown risk through a proprietary tactical asset allocation model. Its clearly defined drawdown target of 10% is a key differentiator. This targeted approach is attractive to risk-averse investors seeking downside protection. By actively adjusting asset allocations based on market conditions, TDWN aims to deliver capital appreciation while mitigating potential losses during market downturns.

Volatility

TDWN's volatility is influenced by the volatility of its underlying assets and the effectiveness of its tactical allocation strategy in mitigating downside risk.

Market Risk

Market risk is the primary risk factor, as declines in equity or fixed income markets can negatively impact TDWN's performance. Its allocation strategy can adjust based on market risk, but is not a guarantee.

Ideal Investor Profile

The ideal investor is risk-averse, seeking long-term capital appreciation with a focus on downside protection and is comfortable with a tactical asset allocation approach.

Market Risk

TDWN is more suitable for long-term investors who prioritize risk management and are willing to accept potentially lower returns compared to purely equity-focused investments. It is not ideal for active traders or those seeking to match index performance.

Cabana Target Drawdown 10 ETF (TDWN) aims to provide long-term capital appreciation while managing downside risk with a 10% drawdown target. It utilizes a tactical asset allocation strategy investing in other ETFs. The fund suits risk-averse, long-term investors. Its relatively small size and less liquid nature should be considered. TDWNu2019s overall success is tied to managementu2019s effectiveness in implementing its stated strategy.

Data Sources:

• ETF.com
• Morningstar
• Cabana Asset Management Website

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.