Cabana Target Drawdown 10 ETF (TDSC)

Overview

This fund is an actively managed exchange-traded fund (ETF) designed to pursue its investment objective while striving to maintain limited volatility and attempting to minimize its correlation with the broad market's equity performance. Its strategy involves diversification across five major asset classes: equities, fixed income securities, real estate, currencies, and commodities, aiming to provide a balanced exposure to a range of investment avenues. The fund is managed with a specific focus on controlling drawdowns, targeting a maximum drawdown of 10% in an effort to protect investors' capital. However, the fund, its Adviser, and the Sub-Adviser note that maintaining this target drawdown is an objective and cannot guarantee its achievement, highlighting the inherent risks of the investment approach.

Products and Services

• Equities

Equities represent one of the core asset classes this ETF invests in, targeting a diversified range of stocks across various sectors and geographical locations to achieve growth. By investing in equities, the fund aims to capitalize on the long-term growth potential of companies while managing the risk through broad diversification.

• Fixed Income Securities

As part of its approach to limit overall fund volatility and provide income, the fund allocates a portion of its assets to fixed income securities. This category includes bonds and other debt instruments that offer regular interest payments, contributing to the fund's income generation capabilities and providing a buffer against market volatility.

• Real Estate

Real estate investments allow the fund to tap into the potential upside of property markets and real estate investment trusts (REITs). This asset class aims to provide stable income through rental yields and the possibility of appreciation in property values, thus offering a hedge against inflation and diversification benefits to the overall portfolio.

• Currencies

The fund's allocation to currencies involves engaging in foreign exchange transactions to exploit opportunities arising from fluctuations in currency values. This strategy seeks to benefit from the differential in interest rates between various currencies and the potential appreciation of undervalued currencies, adding a layer of diversification and hedging against domestic currency depreciation.

• Commodities

Investing in commodities, such as precious metals, energy, and agricultural products, offers the fund an alternative source of returns unrelated to the performance of the equity and bond markets. Commodities investment can serve as an inflation hedge and contribute to reducing the portfolio's overall correlation with traditional financial markets, while embracing the potential for speculative gains.