FEDX — Emles Federal Contractors ETF

FEDX Fund Overview

FEDX — Emles Federal Contractors ETF is a US ETF managed by Emles Trust, categorised as United States Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Emles Trust
• Category: United States Blend / Core Equity
• Assets under management: $5.92M
• 1-year return: -2.4%
• Ticker: FEDX
• SEC CIK: 0001755351
• SEC series ID: S000070038
• Share class ID: C000222946

FEDX Investment Objective and Strategy

Emles Federal Contractors ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Emles Trust.

Investment objective

The Emles Federal Contractors ETF (the Fund) seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Emles Federal Contractors Index (the Index).

Principal investment strategy

The Fund attempts to replicate the Index by investing all, or substantially all (no less than 80%), of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index. As of October 22, 2021, there were 19 issues in the Index. The Index is comprised of U.S. equity securities that provide exposure to the Indexs theme of U.S. federal contractors. Companies relevant to the Indexs federal contractor theme are those that had at least 40% revenue exposure to federal contracts with the U.S. government in the previous fiscal year (defined as ending on September 30th). Companies that are awarded federal contracts amounting to at least 40% of revenues may include companies whose principal business is offering products or providing services related to: aerospace & defense, information technology, cybersecurity, and healthcare (each of the foregoing, a sub-theme).

The Index may at times include companies that do not fall into the listed sub-themes, but nonetheless satisfy the 40% revenue exposure requirement. The Index aims to have a weighted average federal contract revenue exposure of 50% or above. The Fund concentrates its investments (i.e., under normal circumstances, invest 25% or more of its total assets) in the aerospace and defense industry, to the extent that the Index is concentrated in that industry. Emles Indexing LLC (the Index Provider) analyzes the eligible companies in accordance with its proprietary methodology, which uses publicly available information, such as annual reports, business descriptions, and financial news, to rate and weight the companies based on the degree to which the company, including its products or services, provides exposure to the applicable sub-theme(s).

In addition to having a 40% revenue exposure to federal contracts with the U.S. government, securities included in the Index must have, for the six months prior to inclusion in the Index, (i) a minimum average daily trading volume of 100,000 shares, (ii) $10 million in average daily trading value and (iii) a minimum share price of $5.00. Further, each security must have a market capitalization of at least $100 million. Securities must meet the above requirements at that time in which they are selected to be included in the index, including upon rebalancing. The Index Providers Index Committee may determine to include a security with less than $10 million average daily trading value, provided it satisfies the remaining inclusion criteria and is deemed appropriate for inclusion in the Index.

The Index seeks to rebalance quarterly, and under certain circumstances, such as a merger between two Index constituents, a special rebalance will be completed to maintain the Indexs weighting scheme. Emles Indexing LLC (an affiliate of Emles Advisors LLC (the Adviser)) is the index provider for the Index. S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (S&P) is the calculation agent for the Index and independently prices the Index on a continuous basis during equity market hours. The Fund has adopted procedures pursuant to Rule 17j-1 of the Investment Company Act of 1940, as amended (the 1940 Act) and the Adviser has adopted procedures to address any potential conflicts in accordance with Rule 204(A)(1) of the Investment Advisers Act of 1940. These procedures address the types of conflicts that may arise in connection with a self-indexing fund.

The Index Providers methodology does not require that a company from each of the sub-themes be included in the Index. In addition, companies included in the Index may also operate business lines that generate revenue in other sub-themes. The Adviser uses a passive or indexing approach to try to achieve the Funds investment objective. The Fund does not try to beat the index it tracks and would not necessarily sell a security because of overall market decline or if a certain issuer was experiencing financial troubles or appeared overvalued, unless that issuers security was removed from the Index. Indexing may eliminate the chance that the Fund will substantially outperform the Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.

The Adviser uses a full replication strategy, an indexing strategy that involves investing in all securities from the Index that collectively has an investment profile similar to that of the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market value and industry weightings) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities in the Index. The Fund seeks to invest from 80% (at the minimum) to significantly all of its net assets (plus borrowings for investment purposes) in the component securities of the Index.

FEDX Performance

Total returns for FEDX (as of 2026-10-01), from SEC filings.

FEDX Risk Information

Risk metrics for FEDX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 17.4%

FEDX Costs and Fees

FEDX costs about $60 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.60%
• Gross expense ratio: 0.60%
• Portfolio turnover: 55%
• Brokerage commissions: 5.53 bps of average net assets (SEC N-CEN)

FEDX Cashflows

Over the 12 months to 2022-09, Emles Federal Contractors ETF had net inflows of $5.83M, from monthly SEC N-PORT filings.

FEDX Debt Constituents

No individual debt constituents are reported in Emles Federal Contractors ETF's latest SEC N-PORT filing.

FEDX Prospectus and SEC Filings

Official Emles Federal Contractors ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus supplement (497) — filed 2021-11-02
• Prospectus supplement (497) — filed 2020-12-09
• Portfolio holdings (N-PORT) — filed 2022-11-29
• Portfolio holdings (N-PORT) — filed 2022-08-26
• Portfolio holdings (N-PORT) — filed 2022-05-25
• Annual census (N-CEN) — filed 2022-09-13
• Annual census (N-CEN) — filed 2021-09-13

Related Funds

Other United States Blend / Core Equity funds tracked on ABC INVEST:

• International Small Company Portfolio (DFISX)
• iShares Preferred and Income Securities ETF (PFF)
• Guggenheim Macro Opportunities Fund (GIOAX)
• Emerging Markets Portfolio (DFEMX)
• Eaton Vance Global Macro Absolute Return Advantage Fund (EGRAX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.