ETF Foundry
DRAFT — HYPOTHETICAL MODEL PORTFOLIO — NOT A REGISTERED FUND, NOT AN OFFER TO SELL SECURITIES, NOT INVESTMENT ADVICE.
value factor · long-only model fund

Foundry Technology Book-to-Market Value Factor ETF

ETF Foundry Research (hypothetical) · rebalanced monthly

FBMTHYPOTHETICAL MODEL
Since ’99
+279%
Expense Ratio
0.45%
placeholder
Holdings
58
cap-weighted
Inception
Mar 2020
placeholder
Full Sharpe
0.31
Ann. Return (LS)
7.7%
Ann. Volatility
24.6%
Max Drawdown
-77.0%
Test Sharpe ’19–26
0.20
Test FF5 α (ann.)
6.0%
vs Fama-French 5
Test FF5 α t-stat
0.49
not significant
Monthly turnover
12%
of the long leg, per rebalance
Cumulative return (LS)
279%
over 329 months
This fund holds the long leg only
Long leg Sharpe
0.58
what this fund holds
Long leg ann. return
19.2%
buyable, long-only
Long-short Sharpe
0.31
requires shorting
Bottom bucket ann. return
11.5%
the basket shorted

Every other metric on this page is the long-shortstrategy, which needs a short book. This fund is the long leg alone, so these are the figures for what it actually holds. The bottom-bucket number is that basket’s own return — not short P&L.

Hypothetical growth of $1 — long-short backtest

Gross of the placeholder expense ratio and trading costs · not investor results

329 months

Holdings

Every constituent of the long leg — sort, search or filter by sector

58 of 58 · 100.0% of book
TickerCompanySectorMarket capWeight
1INTC
INTEL CORPTechnology$477.67B
71.92%
2MSTR
STRATEGY INCTechnology$33.24B
5.00%
3FSLR
FIRST SOLAR INCTechnology$22.78B
3.43%
4AMKR
AMKOR TECHNOLOGY INCTechnology$15.60B
2.35%
5SMCI
SUPER MICRO COMPUTER INCTechnology$14.54B
2.19%
6ARW
ARROW ELECTRONICS INCTechnology$10.56B
1.59%
7AVT
AVNET INCTechnology$7.03B
1.06%
8INGM
INGRAM MICRO HOLDING CORPTechnology$6.78B
1.02%
9LYFT
LYFT INCTechnology$5.89B
0.89%
10ACMR
ACM RESEARCH INCTechnology$5.56B
0.84%
11VSH
VISHAY INTERTECHNOLOGY INCTechnology$5.15B
0.77%
12IPGP
IPG PHOTONICS CORPTechnology$4.43B
0.67%
13ACLS
AXCELIS TECHNOLOGIES INCTechnology$4.19B
0.63%
14DIOD
DIODES INCTechnology$4.00B
0.60%
15OLED
UNIVERSAL DISPLAY CORPTechnology$3.75B
0.56%
16XNDU
XANADU QUANTUM TECHNOLOGIES LTDTechnology$2.98B
0.45%
17RUN
SUNRUN INCTechnology$2.83B
0.43%
18BHE
BENCHMARK ELECTRONICS INCTechnology$2.81B
0.42%
19VISN
VISTANCE NETWORKS INCTechnology$2.74B
0.41%
20ROG
ROGERS CORPTechnology$2.36B
0.36%
21PLUS
EPLUS INCTechnology$2.33B
0.35%
22CNXN
PC CONNECTION INCTechnology$1.99B
0.30%
23QUBT
QUANTUM COMPUTING INCTechnology$1.76B
0.26%
24SHLS
SHOALS TECHNOLOGIES GROUP INCTechnology$1.73B
0.26%
25PLAB
PHOTRONICS INCTechnology$1.70B
0.26%
26AMBQ
AMBIQ MICRO INCTechnology$1.55B
0.23%
27DXC
DXC TECHNOLOGY COTechnology$1.55B
0.23%
28WOLF
WOLFSPEED INCTechnology$1.44B
0.22%
29WBTN
WEBTOON ENTERTAINMENT INCTechnology$1.41B
0.21%
30WLTH
WEALTHFRONT CORPTechnology$1.38B
0.21%
31AI
C3AI INCTechnology$1.37B
0.21%
32SCSC
SCANSOURCE INCTechnology$1.11B
0.17%
33CEVA
CEVA INCTechnology$1.06B
0.16%
34WYFI
WHITEFIBER INCTechnology$971M
0.15%
35AOSL
ALPHA & OMEGA SEMICONDUCTOR LTDTechnology$936M
0.14%
36DJCO
DAILY JOURNAL CORPTechnology$817M
0.12%
37NTGR
NETGEAR INCTechnology$602M
0.09%
38PUBM
PUBMATIC INCTechnology$591M
0.09%
39MEI
METHODE ELECTRONICS INCTechnology$532M
0.08%
40GDYN
GRID DYNAMICS HOLDINGS INCTechnology$484M
0.07%
41IBEX
IBEX LTDTechnology$474M
0.07%
42CLFD
CLEARFIELD INCTechnology$416M
0.06%
43XPER
XPERI INCTechnology$352M
0.05%
44BKKT
BAKKT INCTechnology$323M
0.05%
45AVNW
AVIAT NETWORKS INCTechnology$269M
0.04%
46RELL
RICHARDSON ELECTRONICS LTDTechnology$250M
0.04%
47DUOT
DUOS TECHNOLOGIES GROUP INCTechnology$241M
0.04%
48ALOT
ASTRONOVA INCTechnology$222M
0.03%
49IMMR
IMMERSION CORPTechnology$220M
0.03%
50GSIT
GSI TECHNOLOGY INCTechnology$208M
0.03%
51KVHI
KVH INDUSTRIES INCTechnology$178M
0.03%
52AMPG
AMPLITECH GROUP INCTechnology$168M
0.03%
53EXOD
EXODUS MOVEMENT INCTechnology$152M
0.02%
54FIRY
FIRY INCTechnology$130M
0.02%
55TRT
TRIO-TECH INTERNATIONALTechnology$103M
0.02%
56WATT
ENERGOUS CORPTechnology$83M
0.01%
57CSPI
CSP INCTechnology$82M
0.01%
58TACT
TRANSACT TECHNOLOGIES INCTechnology$54M
0.01%

Full long-leg book as of July 2026 · cap-weighted · total market cap $664.14B. Hypothetical model holdings — not a registered fund’s portfolio.

Sector Breakdown

1 sectors
Technology
100.0%

Portfolio Style

Size × value map of the long-leg book

58 classified
Value
Blend
Growth
Large
Mid
Small
86%6
·
·
6%11
3%5
·
3%30
1%6
·

Share of long-leg capital by market cap × book-to-market, using terciles of the 421-name universe at July 2026. Rows: Large ≥ $8.9B, Small < $1.9B. Columns: Value ≥ 0.63, Growth < 0.38 B/M. The dot marks the capital-weighted centroid of the book — 91% toward Large, 2% toward Growth. Hypothetical holdings — descriptive, not realized P&L.

Tilt over time
Size tilt91% → Large
SmallLarge
Value ↔ growth tilt2% → Growth
ValueGrowth

Capital-weighted centroid of the long leg, December 1999July 2026; the right-hand end is the same value as the box’s dot. 58 names now. Hypothetical holdings — descriptive, not P&L.

Constraint checks

How this book measures against the concentration and liquidity rules — as implemented here

How this book was built

These are UNCONSTRAINED factor sleeves: the construction pipeline sorts on a signal and cap-weights the top bucket, applying no issuer cap, no industry cap and no liquidity screen beyond the universe filter. A failing test therefore reports a constraint that was never applied during construction — it is not a defect in the strategy and not an error in the data. The same signal can be solved subject to these constraints.

Passed
4
Failed
2
Not tested
1
Independent checks
7

7 independent checks plus 1 arithmetically implied by another check (RIC / IRC 851(b)(3)(A) 50% bucket), which is reported separately so the tally cannot overstate scrutiny.

1 of 7 checks could not be tested. Those are neither passes nor failures — they are gaps in what the data can answer, and they are excluded from the passed count above rather than folded into it.

  • With respect to 75% of total assets, no more than 5% may be invested in the securities of any one issuer.

    Required
    >= 75.0%
    Actual
    33.1%
    Margin
    -41.9%
  • No more than 25% of total assets may be invested in the securities of any one issuer.

    Required
    <= 25.0%
    Actual
    71.9%
    Margin
    -46.9%
Reported separately — arithmetically implied
  • At least 50% of total assets must sit in cash, government securities, other RICs, and other securities limited to 5% of assets and 10% of the issuer's voting securities per issuer.

    Required
    >= 50.0%
    Actual
    33.1%
    Margin
    -16.9%

    Arithmetically entailed by '40 Act 5(b)(1) diversification (75%/5% asset leg) — it cannot fail independently, so it is reported outside the tally rather than counted as a separate check.

Engineering approximation of the cited rules for a DRAFT / HYPOTHETICAL model portfolio that is not a registered fund. This reports whether the portfolio passes the stated test AS IMPLEMENTED HERE; it is not a compliance opinion and is not a statement that any fund is compliant. Real filings need securities counsel.

No verdict sits within 1.0pp of its limit.

Data version — panel=20260719T025334 rows=2239262 asof=202607 issuers=20260719T014536 rates=20260804T224700

Measured on the 2026-07 formation date across 58 holdings (cap-weighted). A different formation date can produce different verdicts.

Derivatives risk (Rule 18f-4)

Whether this long-only book is subject to the VaR tests at all

This assessment describes the long-only book this fund holds — the top bucket only.

Governing rule
Rule 18f-4(c)(4) limited derivatives user exception

This fund QUALIFIES for the limited-derivatives-user exception, so it is excepted from the VaR tests; the ratio below is informational, not the operative limit.

Limited derivatives user exceptionby construction

Rule 18f-4(c)(4): a fund whose derivatives exposure (gross notional, including the value of assets sold short) is <= 10% of net assets is excepted from the VaR tests and the full derivatives risk management program.

Qualifies
Required
<= 10% of net assets
Exposure
0% of net assets
Margin
+10pp

No confidence interval: this follows from portfolio construction, not from an estimate.

Rule 18f-4(c)(2)(i): fund VaR at 99% over 20 trading days must not exceed 200% of the designated reference portfolio's VaR on the same basis.

Informational — does not govern

This fund is excepted from the VaR tests, so the ratio below is context rather than the operative limit. It is shown because it is still a description of the book’s risk, not because it decides anything.

Measured
1.9 (95% CI 1.4-2.5)
x reference VaR
Limit
2.00x
<= 2.00x reference VaR
Fund VaR
18.8%
99% / 20d
Reference
9.6%
FF5 market (mkt)

historical method · 329 monthly observations · about 3.3 in the 99% tail · paired percentile bootstrap over months

Same test, three estimators
historical
1.95x
within
parametric
2.08x
over
cornish fisher
2.49x
over · unreliable

The estimators disagree about the verdict, not just the value — the choice of method decides the answer here. Historical VaR gives ratio 1.95 (pass) but Gaussian VaR gives 2.08 (fail). The pass/fail conclusion is an artefact of estimator choice, not a property of the strategy.

Engineering approximation of SEC Rule 18f-4 for research display. Not a compliance opinion and not a determination that any fund is compliant. Hypothetical model portfolio, not a registered fund.

The research long-short construction behind this factor does not qualify for this exception — a dollar-neutral book counts its full short notional, which is 100% of net assets against a 10% threshold. This product sidesteps that by holding the long leg alone, which is also why the long-leg Sharpe is reported separately throughout the site.

See the long-short verdict on the factor page →

Since publication

Did the edge survive the paper coming out?

published 1980
Entirely since publication
All 329 months of our record post-date the 1980 paper.
Sharpe 0.317.7% p.a.March 1999July 2026

There is no “before” to compare against — the predictor was already public when our data begins, so every month shown is out-of-sample relative to the original study.

Split at January of the year after the factor was published. The post-publication stretch IS genuinely out-of-sample relative to the original study -- the predictor was public by then -- so it speaks to whether the effect survived being known. Nothing is fitted here, so this is performance SINCE PUBLICATION, not validation of a model. Note the 'pre' side is our data before publication (our panel starts ~1999), NOT the study's original in-sample period, which usually ran decades earlier; a decay figure compares before-vs-after within our sample and is not a comparison against the published result.

Consistency across eras

Is this record broadly durable, or one regime?

26 windows
Positive windows
50%
13 of 26 3-year windows made money
Worst window
-1.71
Sharpe, March 2006 – February 2009
March 1999July 2026
Median Sharpe
0.04
Dispersion
0.73
Best window
1.52

3-year rolling windows, stepping 1 year (26 windows). Dispersion is the spread of window Sharpes — higher means the record depends more on which era you look at.

Rules-based factors fit no parameters, so these windows are not out-of-sample tests and do not validate a fitted model. They show whether the factor's record is consistent across eras or driven by one regime.

Returns

Long leg is what this fund holds — long-short is shown for reference

since March 1999
Trailing
PeriodLong legLong-short
1 yearcum.194.0%147.4%
3 yearsp.a.47.7%21.0%
5 yearsp.a.23.5%3.2%
10 yearsp.a.24.4%0.3%
Since inceptionp.a.15.0%5.0%
Calendar years
YearLong legLong-short
20267 mo85.8%69.9%
202590.6%64.5%
2024-27.2%-48.0%
202374.7%1.5%
2022-38.1%-5.7%
202114.4%-14.4%
202034.2%-11.5%
201939.0%5.7%
2018-10.6%-25.1%
201744.1%6.8%
201626.0%16.1%
2015-18.5%-17.6%
201417.5%6.2%
201365.8%35.6%
20129.3%-8.7%
2011-14.2%-5.9%
201023.2%7.1%
200989.9%18.6%
2008-54.2%-23.0%
2007-10.0%-22.4%
20066.4%-8.0%
2005-0.2%6.3%
200414.9%2.1%
200379.8%42.5%
2002-35.4%2.6%
20013.1%81.9%
20003.3%60.1%
199910 mo122.9%11.3%

Long leg = the top bucket this fund holds; long-short additionally shorts the bottom bucket and is not achievable in a long-only vehicle. Trailing figures run through July 2026: 1 year is a plain cumulative 12-month return (cum.), 3 years and longer are annualised (p.a.). Years marked with a month count are partial. These match the fact sheet’s tables by construction. Hypothetical backtest, gross of the placeholder expense ratio and trading costs — not investor results.

Fund Facts

Ticker (pseudo)FBMT
IssuerETF Foundry Research (hypothetical)
SeriesHypothetical Model Portfolio Series (not a registered trust)
Expense ratio0.45% (placeholder)
Inception2020-03-01 (placeholder)
Listing exchangeNot listed (hypothetical)
CUSIPNot applicable (hypothetical model portfolio)
RebalanceMonthly
Holdings as ofJuly 2026
Total mkt cap (long leg)$664.14B

Methodology

The Foundry Technology Book-to-Market Value Factor ETF tracks a rules-based model that ranks Technology common stocks each month by a Book-to-Market Value signal and holds the top quintile with the highest values. Signals are computed from point-in-time Sharadar fundamentals and total-return prices. The portfolio reconstitutes monthly and is cap-weighted within the long leg.

This is a hypothetical model portfolio for research display only — not a registered fund, not an offer, and not investment advice.

Documents (draft — hypothetical)

Auto-generated from the model’s metrics and current holdings. Every document is labeled DRAFT / hypothetical.

Summary Prospectus

Objective, fees, strategy, and key risks.

View →
Prospectus

Full strategy, model methodology, and risks.

View →
Statement of Additional Information

Policies, construction, and governance.

View →
Fact Sheet

One-page snapshot with top holdings.

View →
Daily Holdings

Full current constituent list.

View →

DRAFT — HYPOTHETICAL MODEL PORTFOLIO — NOT A REGISTERED FUND, NOT AN OFFER TO SELL SECURITIES, NOT INVESTMENT ADVICE.