ETF Defense Defender Risk Adaptive 500 ETF (SPDF)

An SPDF ETF Overview: ETF Defense Defender Risk Adaptive 500 ETF (SPDF)

The Defender Risk Adaptive 500 ETF (ticker: SPDF), also referred to as the SPDF ETF, is an actively managed equity ETF that aims for long-term capital growth by investing in U.S. large-cap stocks. The fund mainly invests through ETFs, adding a risk management layer to adjust equity exposure based on changing market conditions.

Sound Capital Solutions LLC acts as the investment advisor for the SPDF ETF. Tamarisk Capital Management LLC and Penserra Capital Management are the sub-advisors. Within this setup, Tamarisk handles daily portfolio management, while Penserra takes care of trading execution and implementation.

Investment Strategy of the SPDF ETF

The ETF Defense Defender Risk Adaptive 500 ETF keeps investors engaged in U.S. equity markets during positive conditions, adjusting exposure dynamically when market signals weaken. Instead of passively tracking the S&P 500 (1), the strategy targets securities that the sub-advisors believe have a higher chance of outperforming the index over time. The goal is to improve risk-adjusted returns throughout market cycles.

Market Breadth Model and Risk Framework

Tamarisk Capital Management uses a special technical analysis method to evaluate market breadth and classify overall market conditions. This model includes various indicators, such as:

• NYSE all-issues advance-decline line
• NYSE common stocks only advance-decline line
• Percentage of NYSE securities above their 200-day, 150-day, and 50-day moving averages
• Percentage of securities reaching 52-week highs and lows

These elements help create a structured view of market participation and inform how the SPDF ETF adjusts its equity exposure over time.

Dynamic Exposure and Risk Management

The ETF Defense Defender Risk Adaptive 500 ETF operates with a flexible exposure framework that changes with market conditions:

• In favorable environments, the fund may stay fully invested in equities and can increase exposure above 100% using a tactical allocation program.
• Total equity exposure can go up to 140%, including investments in broad-based leveraged ETFs.
• In weaker or more unstable market conditions, the fund gradually reduces its exposure and, in rare situations, may go to 0% long exposure.
• For defensive positioning, assets might shift into U.S. Treasury ETFs and high-quality short-term fixed income instruments.

This flexible structure aims to balance participation in equity gains with systematic risk management.

Current Portfolio Positioning and Costs

As of May 21, 2026, the SPDF ETF held about:

• 99.71% in the State Street SPDR Portfolio S&P 500 ETF (SPYM)
• 0.29% in cash and other assets

The fund charges a management fee of 0.65% and acquired fund fees and expenses of 0.04%, leading to total annual operating expenses of 0.69%. Vincent Randazzo and Ryan Gorman co-manage the Defense ETF.