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

Foundry Energy CompEquIss Factor ETF

ETF Foundry Research (hypothetical) · rebalanced monthly

FCOEHYPOTHETICAL MODEL
Since ’99
−35%
Expense Ratio
0.45%
placeholder
Holdings
24
cap-weighted
Inception
Dec 2022
placeholder
Full Sharpe
-0.02
Ann. Return (LS)
-0.3%
Ann. Volatility
17.6%
Max Drawdown
-68.9%
Test Sharpe ’19–26
-0.12
Test FF5 α (ann.)
-4.7%
vs Fama-French 5
Test FF5 α t-stat
-0.67
not significant
Monthly turnover
15%
of the long leg, per rebalance
Cumulative return (LS)
-35%
over 271 months
This fund holds the long leg only
Long leg Sharpe
0.38
what this fund holds
Long leg ann. return
11.9%
buyable, long-only
Long-short Sharpe
-0.02
requires shorting
Bottom bucket ann. return
12.2%
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

271 months

Holdings

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

24 of 24 · 100.0% of book
TickerCompanySectorMarket capWeight
1VLO
VALERO ENERGY CORPEnergy$91.95B
19.52%
2MPC
MARATHON PETROLEUM CORPEnergy$91.26B
19.37%
3WMB
WILLIAMS COMPANIES INCEnergy$89.74B
19.05%
4TRGP
TARGA RESOURCES CORPEnergy$60.72B
12.89%
5FTI
TECHNIPFMC PLCEnergy$28.73B
6.10%
6WES
WESTERN MIDSTREAM PARTNERS LPEnergy$18.10B
3.84%
7PAA
PLAINS ALL AMERICAN PIPELINE LPEnergy$16.84B
3.57%
8DTM
DT MIDSTREAM INCEnergy$14.80B
3.14%
9PBF
PBF ENERGY INCEnergy$7.42B
1.58%
10AROC
ARCHROCK INCEnergy$6.51B
1.38%
11WFRD
WEATHERFORD INTERNATIONAL PLCEnergy$5.80B
1.23%
12PAGP
PLAINS GP HOLDINGS LPEnergy$5.07B
1.08%
13SEI
SOLARIS ENERGY INFRASTRUCTURE INCEnergy$4.43B
0.94%
14INSW
INTERNATIONAL SEAWAYS INCEnergy$4.29B
0.91%
15DK
DELEK US HOLDINGS INCEnergy$3.88B
0.82%
16PARR
PAR PACIFIC HOLDINGS INCEnergy$3.82B
0.81%
17TDW
TIDEWATER INCEnergy$3.77B
0.80%
18CLMT
CALUMET INCEnergy$3.73B
0.79%
19CVI
CVR ENERGY INCEnergy$3.53B
0.75%
20NGL
NGL ENERGY PARTNERS LPEnergy$1.89B
0.40%
21LPG
DORIAN LPG LTDEnergy$1.76B
0.37%
22PBT
PERMIAN BASIN ROYALTY TRUSTEnergy$1.32B
0.28%
23NPKI
NPK INTERNATIONAL INCEnergy$1.21B
0.26%
24NGS
NATURAL GAS SERVICES GROUP INCEnergy$488M
0.10%

Full long-leg book as of July 2026 · cap-weighted · total market cap $471.09B. Hypothetical model holdings — not a registered fund’s portfolio.

Sector Breakdown

1 sectors
Energy
100.0%

Portfolio Style

Size × value map of the long-leg book

24 classified
Value
Blend
Growth
Large
Mid
Small
2%1
23%2
64%6
2%2
2%2
4%4
<1%1
<1%1
1%2

Share of long-leg capital by market cap × book-to-market, using terciles of the 137-name universe at July 2026. Rows: Large ≥ $7.1B, Small < $1.8B. Columns: Value ≥ 0.64, Growth < 0.40 B/M. The dot marks the capital-weighted centroid of the book — 95% toward Large, 83% toward Growth. +2% unclassified (3 missing size/value). Hypothetical holdings — descriptive, not realized P&L.

Tilt over time
Size tilt95% → Large
SmallLarge
Value ↔ growth tilt83% → Growth
ValueGrowth

Capital-weighted centroid of the long leg, December 2003July 2026; the right-hand end is the same value as the box’s dot. 24 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
5
Failed
1
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
    48.1%
    Margin
    -26.9%
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
    48.1%
    Margin
    -1.9%

    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 24 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
2.2 (95% CI 1.4-2.9)
x reference VaR
Limit
2.00x
<= 2.00x reference VaR
Fund VaR
20.2%
99% / 20d
Reference
9.4%
FF5 market (mkt)

historical method · 271 monthly observations · about 2.7 in the 99% tail · paired percentile bootstrap over months

Same test, three estimators
historical
2.15x
over
parametric
2.12x
over
cornish fisher
2.87x
over · unreliable

The estimators agree, which is mild evidence the number isn’t an artefact of one method.

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 2006
Before publication (pre-2006)
0.50
Sharpe · 7.1% p.a.
January 2004December 2006 · 36 mo
Since publication
-0.08
Sharpe · -1.5% p.a.
January 2007July 2026 · 235 mo
Change in Sharpe−0.58the return reversed sign — the published edge now runs the other way

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?

21 windows
Positive windows
62%
13 of 21 3-year windows made money
Worst window
-1.40
Sharpe, January 2008 – December 2010
January 2004July 2026
Median Sharpe
0.14
Dispersion
0.72
Best window
1.24

3-year rolling windows, stepping 1 year (21 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 January 2004
Trailing
PeriodLong legLong-short
1 yearcum.35.3%-14.7%
3 yearsp.a.21.9%4.7%
5 yearsp.a.19.0%-3.9%
10 yearsp.a.9.1%0.1%
Since inceptionp.a.7.1%-1.9%
Calendar years
YearLong legLong-short
20267 mo37.7%1.6%
20254.2%-8.2%
202423.1%20.4%
2023-1.4%-14.1%
202245.6%3.5%
202119.1%-34.7%
2020-23.1%31.6%
2019-6.5%-15.1%
2018-22.0%-9.4%
201716.3%33.5%
201614.2%-7.2%
2015-25.1%14.3%
20141.4%21.5%
201330.2%7.2%
20124.4%-0.3%
20119.1%9.1%
20108.3%-5.8%
20096.4%-45.1%
2008-57.0%-33.1%
200736.6%18.3%
200612.5%-12.9%
200565.7%21.3%
200448.4%13.5%

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)FCOE
IssuerETF Foundry Research (hypothetical)
SeriesHypothetical Model Portfolio Series (not a registered trust)
Expense ratio0.45% (placeholder)
Inception2022-12-03 (placeholder)
Listing exchangeNot listed (hypothetical)
CUSIPNot applicable (hypothetical model portfolio)
RebalanceMonthly
Holdings as ofJuly 2026
Total mkt cap (long leg)$471.09B

Methodology

The Foundry Energy CompEquIss Factor ETF tracks a rules-based model that ranks Energy common stocks each month by a CompEquIss signal and holds the top quintile with the lowest 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.

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Prospectus

Full strategy, model methodology, and risks.

View →
Statement of Additional Information

Policies, construction, and governance.

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Fact Sheet

One-page snapshot with top holdings.

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Daily Holdings

Full current constituent list.

View →

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