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 Industrials RD Factor ETF

ETF Foundry Research (hypothetical) · rebalanced monthly

FRDIHYPOTHETICAL MODEL
Since ’99
+765%
Expense Ratio
0.45%
placeholder
Holdings
23
cap-weighted
Inception
Oct 2019
placeholder
Full Sharpe
0.46
Ann. Return (LS)
10.3%
Ann. Volatility
22.4%
Max Drawdown
-38.8%
Test Sharpe ’19–26
0.10
Test FF5 α (ann.)
-5.1%
vs Fama-French 5
Test FF5 α t-stat
-0.57
not significant
Monthly turnover
13%
of the long leg, per rebalance
Cumulative return (LS)
765%
over 331 months
This fund holds the long leg only
Long leg Sharpe
0.71
what this fund holds
Long leg ann. return
18.5%
buyable, long-only
Long-short Sharpe
0.46
requires shorting
Bottom bucket ann. return
8.1%
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

331 months

Holdings

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

23 of 23 · 100.0% of book
TickerCompanySectorMarket capWeight
1EXPE
EXPEDIA GROUP INCIndustrials$32.26B
41.00%
2CNH
CNH INDUSTRIAL NVIndustrials$13.19B
16.77%
3AGCO
AGCO CORPIndustrials$8.35B
10.61%
4JOBY
JOBY AVIATION INCIndustrials$7.11B
9.04%
5DLB
DOLBY LABORATORIES INCIndustrials$4.64B
5.90%
6FLY
FIREFLY AEROSPACE INCIndustrials$3.09B
3.92%
7TRIP
TRIPADVISOR INCIndustrials$1.70B
2.16%
8ENOV
ENOVIS CORPIndustrials$1.56B
1.98%
9LZ
LEGALZOOMCOM INCIndustrials$1.33B
1.68%
10UPWK
UPWORK INCIndustrials$1.12B
1.42%
11KODK
EASTMAN KODAK COIndustrials$748M
0.95%
12FAC
FACTORIAL ENERGY INCIndustrials$610M
0.77%
13TWI
TITAN INTERNATIONAL INCIndustrials$493M
0.63%
14SPIR
SPIRE GLOBAL INCIndustrials$488M
0.62%
15CMCO
COLUMBUS MCKINNON CORPIndustrials$414M
0.53%
16SERV
SERVE ROBOTICS INCIndustrials$394M
0.50%
17LTBR
LIGHTBRIDGE CORPIndustrials$256M
0.33%
18UP
WHEELS UP EXPERIENCE INCIndustrials$229M
0.29%
19AIRO
AIRO GROUP HOLDINGS INCIndustrials$205M
0.26%
20EAF
GRAFTECH INTERNATIONAL LTDIndustrials$181M
0.23%
21AOUT
AMERICAN OUTDOOR BRANDS INCIndustrials$174M
0.22%
22ULBI
ULTRALIFE CORPIndustrials$92M
0.12%
23LNZA
LANZATECH GLOBAL INCIndustrials$56M
0.07%

Full long-leg book as of July 2026 · cap-weighted · total market cap $78.68B. 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

23 classified
Value
Blend
Growth
Large
Mid
Small
67%4
21%2
·
4%5
·
4%2
1%5
·
·

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 — 95% toward Large, 15% toward Growth. +4% unclassified (5 missing size/value). Hypothetical holdings — descriptive, not realized P&L.

Tilt over time
Size tilt95% → Large
SmallLarge
Value ↔ growth tilt15% → Growth
ValueGrowth

Capital-weighted centroid of the long leg, December 1998July 2026; the right-hand end is the same value as the box’s dot. 23 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
    41.7%
    Margin
    -33.3%
  • No more than 25% of total assets may be invested in the securities of any one issuer.

    Required
    <= 25.0%
    Actual
    41.0%
    Margin
    -16.0%
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
    41.7%
    Margin
    -8.3%

    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 23 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
1.6 (95% CI 1.1-2.1)
x reference VaR
Limit
2.00x
<= 2.00x reference VaR
Fund VaR
15.3%
99% / 20d
Reference
9.6%
FF5 market (mkt)

historical method · 331 monthly observations · about 3.3 in the 99% tail · paired percentile bootstrap over months

Same test, three estimators
historical
1.59x
within
parametric
1.61x
within
cornish fisher
1.53x
within

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 2001
Before publication (pre-2001)
1.15
Sharpe · 37.2% p.a.
January 1999December 2001 · 36 mo
Since publication
0.34
Sharpe · 7.0% p.a.
January 2002July 2026 · 295 mo
Change in Sharpe−0.81Sharpe weakened since publication81% 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?

26 windows
Positive windows
88%
23 of 26 3-year windows made money
Worst window
-0.46
Sharpe, August 2023 – July 2026
January 1999July 2026
Median Sharpe
0.55
Dispersion
0.43
Best window
1.57

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 January 1999
Trailing
PeriodLong legLong-short
1 yearcum.0.3%-12.7%
3 yearsp.a.9.5%-10.4%
5 yearsp.a.4.2%-5.3%
10 yearsp.a.15.7%2.5%
Since inceptionp.a.16.2%8.1%
Calendar years
YearLong legLong-short
20267 mo-8.1%-14.0%
202522.5%-5.6%
202417.1%-12.2%
202317.9%1.5%
2022-17.7%9.3%
202127.5%3.5%
202052.3%17.3%
201922.5%-1.3%
2018-3.7%23.2%
201718.7%-2.1%
201640.2%25.3%
2015-13.5%7.8%
20147.5%10.0%
201341.7%-1.1%
201210.7%15.9%
20117.2%6.8%
201031.7%9.2%
200961.8%18.2%
2008-41.9%16.4%
200713.9%-18.3%
200640.0%9.4%
20055.1%7.0%
200417.1%13.1%
200338.4%-21.1%
2002-7.0%24.6%
200149.8%37.4%
200032.5%103.0%
199933.1%-6.7%

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)FRDI
IssuerETF Foundry Research (hypothetical)
SeriesHypothetical Model Portfolio Series (not a registered trust)
Expense ratio0.45% (placeholder)
Inception2019-10-24 (placeholder)
Listing exchangeNot listed (hypothetical)
CUSIPNot applicable (hypothetical model portfolio)
RebalanceMonthly
Holdings as ofJuly 2026
Total mkt cap (long leg)$78.68B

Methodology

The Foundry Industrials RD Factor ETF tracks a rules-based model that ranks Industrials common stocks each month by a RD 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.