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 Industrials CompEquIss Factor ETF

ETF Foundry Research (hypothetical) · rebalanced monthly

FCOIHYPOTHETICAL MODEL
Since ’99
+158%
Expense Ratio
0.45%
placeholder
Holdings
72
cap-weighted
Inception
Jan 2019
placeholder
Full Sharpe
0.38
Ann. Return (LS)
5.2%
Ann. Volatility
13.7%
Max Drawdown
-39.1%
Test Sharpe ’19–26
0.43
Test FF5 α (ann.)
8.1%
vs Fama-French 5
Test FF5 α t-stat
1.36
not significant
Monthly turnover
13%
of the long leg, per rebalance
Cumulative return (LS)
158%
over 271 months
This fund holds the long leg only
Long leg Sharpe
0.71
what this fund holds
Long leg ann. return
15.3%
buyable, long-only
Long-short Sharpe
0.38
requires shorting
Bottom bucket ann. return
10.2%
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

72 of 72 · 100.0% of book
TickerCompanySectorMarket capWeight
1CAT
CATERPILLAR INCIndustrials$405.49B
17.91%
2GE
GE AEROSPACEIndustrials$361.93B
15.99%
3PH
PARKER-HANNIFIN CORPIndustrials$120.19B
5.31%
4VRT
VERTIV HOLDINGS COIndustrials$111.22B
4.91%
5HWM
HOWMET AEROSPACE INCIndustrials$109.00B
4.81%
6PWR
QUANTA SERVICES INCIndustrials$94.32B
4.17%
7CMI
CUMMINS INCIndustrials$89.48B
3.95%
8RCL
ROYAL CARIBBEAN CRUISES LTDIndustrials$76.96B
3.40%
9HON
HONEYWELL INTERNATIONAL INCIndustrials$71.29B
3.15%
10GWW
WW GRAINGER INCIndustrials$65.86B
2.91%
11URI
UNITED RENTALS INCIndustrials$65.48B
2.89%
12BE
BLOOM ENERGY CORPIndustrials$61.14B
2.70%
13FIX
COMFORT SYSTEMS USA INCIndustrials$58.93B
2.60%
14WAB
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPIndustrials$44.47B
1.96%
15RKLB
ROCKET LAB CORPIndustrials$39.14B
1.73%
16EME
EMCOR GROUP INCIndustrials$33.07B
1.46%
17CRS
CARPENTER TECHNOLOGY CORPIndustrials$27.71B
1.22%
18CW
CURTISS WRIGHT CORPIndustrials$26.15B
1.15%
19MTZ
MASTEC INCIndustrials$26.04B
1.15%
20ATI
ATI INCIndustrials$25.41B
1.12%
21XPO
XPO INCIndustrials$25.25B
1.12%
22NVT
NVENT ELECTRIC PLCIndustrials$25.05B
1.11%
23WWD
WOODWARD INCIndustrials$23.41B
1.03%
24FTAI
FTAI AVIATION LTDIndustrials$21.28B
0.94%
25STRL
STERLING INFRASTRUCTURE INCIndustrials$19.59B
0.87%
26CLH
CLEAN HARBORS INCIndustrials$16.41B
0.72%
27WCC
WESCO INTERNATIONAL INCIndustrials$15.97B
0.71%
28BWXT
BWX TECHNOLOGIES INCIndustrials$15.68B
0.69%
29MLI
MUELLER INDUSTRIES INCIndustrials$13.08B
0.58%
30MOG.A
MOOG INCIndustrials$12.46B
0.55%
31AIT
APPLIED INDUSTRIAL TECHNOLOGIES INCIndustrials$12.43B
0.55%
32DY
DYCOM INDUSTRIES INCIndustrials$12.23B
0.54%
33IESC
IES HOLDINGS INCIndustrials$12.21B
0.54%
34R
RYDER SYSTEM INCIndustrials$10.52B
0.46%
35POWL
POWELL INDUSTRIES INCIndustrials$8.48B
0.37%
36AGX
ARGAN INCIndustrials$7.73B
0.34%
37FSS
FEDERAL SIGNAL CORPIndustrials$7.11B
0.31%
38NPO
ENPRO INCIndustrials$6.82B
0.30%
39MATX
MATSON INCIndustrials$6.72B
0.30%
40MYRG
MYR GROUP INCIndustrials$6.10B
0.27%
41CAR
AVIS BUDGET GROUP INCIndustrials$5.67B
0.25%
42VSEC
VSE CORPIndustrials$5.60B
0.25%
43GVA
GRANITE CONSTRUCTION INCIndustrials$5.43B
0.24%
44AIR
AAR CORPIndustrials$5.38B
0.24%
45MDU
MDU RESOURCES GROUP INCIndustrials$4.42B
0.20%
46GFF
GRIFFON CORPIndustrials$4.20B
0.19%
47TPC
TUTOR PERINI CORPIndustrials$4.14B
0.18%
48GEO
GEO GROUP INCIndustrials$3.94B
0.17%
49SXI
STANDEX INTERNATIONAL CORPIndustrials$3.67B
0.16%
50CXW
CORECIVIC INCIndustrials$3.03B
0.13%
51CXT
CRANE NXT COIndustrials$2.95B
0.13%
52CECO
CECO ENVIRONMENTAL CORPIndustrials$2.87B
0.13%
53DXPE
DXP ENTERPRISES INCIndustrials$2.60B
0.12%
54PBI
PITNEY BOWES INCIndustrials$2.51B
0.11%
55ATRO
ASTRONICS CORPIndustrials$2.41B
0.11%
56TH
TARGET HOSPITALITY CORPIndustrials$1.64B
0.07%
57PLPC
PREFORMED LINE PRODUCTS COIndustrials$1.60B
0.07%
58WLFC
WILLIS LEASE FINANCE CORPIndustrials$1.35B
0.06%
59NWPX
NWPX INFRASTRUCTURE INCIndustrials$1.33B
0.06%
60GHM
GRAHAM CORPIndustrials$1.26B
0.06%
61CVLG
COVENANT LOGISTICS GROUP INCIndustrials$1.19B
0.05%
62UPWK
UPWORK INCIndustrials$1.12B
0.05%
63LMB
LIMBACH HOLDINGS INCIndustrials$867M
0.04%
64PSIX
POWER SOLUTIONS INTERNATIONAL INCIndustrials$697M
0.03%
65NVRI
ENVIRI CORPIndustrials$643M
0.03%
66QUAD
QUAD/GRAPHICS INCIndustrials$446M
0.02%
67ESOA
ENERGY SERVICES OF AMERICA CORPIndustrials$299M
0.01%
68UP
WHEELS UP EXPERIENCE INCIndustrials$229M
0.01%
69RCMT
RCM TECHNOLOGIES INCIndustrials$196M
0.01%
70EAF
GRAFTECH INTERNATIONAL LTDIndustrials$181M
0.01%
71TAYD
TAYLOR DEVICES INCIndustrials$176M
0.01%
72ESP
ESPEY MFG & ELECTRONICS CORPIndustrials$172M
0.01%

Full long-leg book as of July 2026 · cap-weighted · total market cap $2.26T. Hypothetical model holdings — not a registered fund’s portfolio.

Sector Breakdown

1 sectors
Industrials
100.0%

Portfolio Style

Size × value map of the long-leg book

72 classified
Value
Blend
Growth
Large
Mid
Small
9%9
24%20
66%22
1%7
<1%4
<1%2
<1%4
·
·

Share of long-leg capital by market cap × book-to-market, using terciles of the 706-name universe at July 2026. Rows: Large ≥ $2.8B, Small < $315M. Columns: Value ≥ 0.60, Growth < 0.34 B/M. The dot marks the capital-weighted centroid of the book — 100% toward Large, 79% toward Growth. Hypothetical holdings — descriptive, not realized P&L.

Tilt over time
Size tilt100% → Large
SmallLarge
Value ↔ growth tilt79% → 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. 72 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
6
Failed
0
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
    75.8%
    Margin
    0.8%

    Close to the line. The engine flags this verdict as one a routine data rebuild could flip. Read it as borderline rather than settled — the margin beside it is the whole story.

Reported separately — arithmetically implied

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.

1 verdict(s) sit within 1.0pp of their limit and can be flipped by a routine data rebuild; do not headline them, and always show the margin.

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

Measured on the 2026-07 formation date across 72 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
2.0 (95% CI 1.2-2.1)
x reference VaR
Limit
2.00x
<= 2.00x reference VaR
Fund VaR
18.8%
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
2.01x
over
parametric
1.40x
within
cornish fisher
1.47x
within

The estimators disagree about the verdict, not just the value — the choice of method decides the answer here. Historical VaR gives ratio 2.01 (fail) but Gaussian VaR gives 1.40 (pass). 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 2006
Before publication (pre-2006)
0.71
Sharpe · 7.4% p.a.
January 2004December 2006 · 36 mo
Since publication
0.34
Sharpe · 4.8% p.a.
January 2007July 2026 · 235 mo
Change in Sharpe−0.37Sharpe weakened since publication35% of the prior annual return given up

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
76%
16 of 21 3-year windows made money
Worst window
-0.46
Sharpe, January 2008 – December 2010
January 2004July 2026
Median Sharpe
0.39
Dispersion
0.47
Best window
1.17

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.31.5%26.3%
3 yearsp.a.32.0%14.1%
5 yearsp.a.20.4%11.4%
10 yearsp.a.18.2%7.2%
Since inceptionp.a.13.8%4.3%
Calendar years
YearLong legLong-short
20267 mo23.1%28.8%
202533.8%9.0%
202432.1%4.8%
202324.4%-1.7%
2022-14.8%3.0%
202126.4%15.1%
20207.9%-8.1%
201930.4%-1.5%
2018-6.6%16.5%
201728.0%10.7%
201614.3%-5.6%
20150.7%25.1%
201418.6%5.9%
201342.3%-8.2%
201212.7%-6.0%
20113.8%10.7%
201039.3%9.0%
200930.9%8.5%
2008-53.2%-35.4%
200726.4%15.4%
200615.2%6.7%
20057.2%12.7%
200423.5%2.1%

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)FCOI
IssuerETF Foundry Research (hypothetical)
SeriesHypothetical Model Portfolio Series (not a registered trust)
Expense ratio0.45% (placeholder)
Inception2019-01-04 (placeholder)
Listing exchangeNot listed (hypothetical)
CUSIPNot applicable (hypothetical model portfolio)
RebalanceMonthly
Holdings as ofJuly 2026
Total mkt cap (long leg)$2.26T

Methodology

The Foundry Industrials CompEquIss Factor ETF tracks a rules-based model that ranks Industrials 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.

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.