Cabana Target Drawdown 7 ETF (TDSB US) – Portfolio Construction Methodology

The investment process underpinning the actively managed Cabana Target Drawdown 7 ETF seeks long-term growth with equity-like upside while stabilising volatility through a multi-asset, fund-of-funds approach driven by Cabana’s Cyclical Asset Reallocation Algorithm (CARA). The portfolio allocates across ETFs and direct securities spanning global equities, fixed income, real estate, currencies, and commodities, including exposure to high yield and emerging markets, to maintain diversified sources of return. CARA continuously evaluates yield-curve structure, broad earnings trends, and price momentum to tilt toward asset classes judged attractive in the business cycle and away from those signalling deteriorating conditions. Portfolio construction targets an aggregate one-year rolling beta of approximately 0.35 versus a broad U.S. equity reference index, with allocations dynamically shifted toward short-term Treasuries and lower-risk assets when risk signals deteriorate. Holdings are adjusted frequently, with the sub-adviser retaining discretion to override model outputs when market structure appears to change.

To explore TDSB in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/TDSB_US