RFUN — RiverFront Dynamic Unconstrained Income ETF
Data updated: 2021-10-29
RFUN — RiverFront Dynamic Unconstrained Income ETF. Bond · $14.16M AUM · 0.55% expense ratio · 5.6% 1-yr return. Holdings, fees, performance and SEC filings.
RFUN Fund Overview
RFUN — RiverFront Dynamic Unconstrained Income ETF is a US ETF managed by ALPS ETF Trust, categorised as Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US ETF
- Manager: ALPS ETF Trust
- Category: Bond
- Assets under management: $14.16M
- 1-year return: 5.6%
- Ticker: RFUN
- SEC CIK: 0001414040
- SEC series ID: S000051618
- Share class ID: C000162389
RFUN Investment Objective and Strategy
RiverFront Dynamic Unconstrained Income ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ALPS ETF Trust.
Investment objective
The Fund seeks total return, with an emphasis on income as the source of that total return.
Principal investment strategy
"The Fund seeks to achieve its investment objective by investing in a global portfolio of fixed income securities of various maturities, ratings and currency denominations. The Fund allocates its investments based upon the analysis of RiverFront Investment Group, LLC (""RiverFront"", or the ""Sub-Adviser"") of the pertinent economic and market conditions, as well as yield, maturity, credit and currency considerations. The Fund's portfolio is constructed by RiverFront through a two-step process. The first step involves setting the strategic allocation among a broad array of fixed income asset classes, with the objective being to construct an allocation that is designed to balance the probability of upside returns with downside risks, assuming a five-year time horizon. The second step involves RiverFront tactically adjusting these allocations as market conditions warrant and determining security selection within the asset classes in order to seek to maximize potential returns.
The Fund's allocation across long-term, medium-term and short-term investment grade securities, long-term and short-term high yield securities, and emerging market debt is adjusted at least annually, but may be adjusted more frequently if, in the sole discretion of RiverFront, market conditions warrant. RiverFront's allocation decisions will be based on a quantitative methodology, the inputs for which reflect RiverFront's qualitative judgements about market conditions. This methodology models historical returns as a function of initial valuation conditions and creates estimates of potential returns and downside risks consistent with historical market behavior. The estimates produced by this methodology are then incorporated into a proprietary Mean Reversion Optimization (MRO) process to determine the weighting for each of the relevant fixed income asset classes.
The Fund may purchase fixed income securities issued by U.S. or foreign corporations or financial institutions, including debt securities of all types and maturities, convertible securities and preferred stocks. The Fund also may purchase securities issued or guaranteed by the U.S. Government or foreign governments (including foreign states, provinces and municipalities) or their agencies and instrumentalities (""government entities"") or issued or guaranteed by international organizations designated or supported by multiple government entities to promote economic reconstruction or development (""supranational entities""). The Fund may invest in mortgage-backed securities (""MBS"") issued or guaranteed by federal agencies and/or U.S. government sponsored instrumentalities, such as the Government National Mortgage Administration (""Ginnie Mae""), the Federal Housing Administration (""FHA""), the Federal National Mortgage Association (""Fannie Mae"") and the Federal Home Loan Mortgage Corporation (""Freddie Mac"").
The Fund may invest up to 20% of its total assets in MBS (which may include commercial MBS (""CMBS"") or asset-backed securities (""ABS"") issued or guaranteed by private entities. The MBS in which the Fund may invest may also include collateralized mortgage obligations (""CMOs""). The Fund may purchase or sell securities on a when issued, delayed delivery or forward commitment basis. The Fund may also invest in other exchange-traded funds (""ETFs"") and/or closed-end funds which invest in fixed income securities. The Fund has not established any credit rating criteria for the fixed income securities in which it may invest, and it may invest entirely in high yield securities (""junk bonds""). Junk bonds are debt securities that are rated below investment grade by nationally recognized statistical rating organizations (""NRSROs""), or are unrated securities that the Sub-Adviser believes are of comparable quality.
The Sub-Adviser considers the credit ratings assigned by NRSROs as one of several factors in its independent credit analysis of issuers. The Fund may invest without limitation in U.S. dollar-denominated securities of foreign issuers in developed markets. The Fund may invest up to 50% of its assets in securities denominated in foreign currencies and up to 50% of its assets in securities of issuers located in emerging markets. In certain circumstances, the Sub-Adviser may attempt to offset a portion or all of the foreign currency exposure in these securities by entering into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date (""forward contracts""). The Fund may elect to enter into swap contracts that effectively bundle the purchase of foreign bonds and the hedging of foreign currency into a single transaction.
The average maturity or duration of the Fund's portfolio of fixed income securities will vary based on the Sub-Adviser's assessment of economic and market conditions, as well as current and anticipated changes in interest rates; however, the Sub-Adviser intends to manage the Fund's portfolio so that it has an average duration of between two and ten years, under normal circumstances. Duration measures the price sensitivity of a security to interest rate changes. The longer the duration, the more sensitive the Fund's portfolio will be to a change in interest rates. A 1% change in interest rates is typically estimated to change the price of a fixed income security by 1% for each year of the security's duration. For example, if a fixed income security has a duration of three years, a 1% rise in interest rates would typically be expected to reduce the price of the security by approximately 3%.
Similar estimates would typically apply to a portfolio of fixed income securities, such as the Fund's, based on the portfolio's average duration. As the value of a security changes over time, so will its duration, which in turn will affect the Fund's duration."
RFUN Performance
Total returns for RFUN (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 5.6% |
| 3 years (annualised) | 5.0% |
RFUN Risk Information
Risk metrics for RFUN, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 2.3%
RFUN Costs and Fees
RFUN costs about $55 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.55%
- Gross expense ratio: 0.55%
- Portfolio turnover: 38%
- Brokerage commissions: 0.11 bps of average net assets (SEC N-CEN)
RFUN Cashflows
Over the 12 months to 2021-08, RiverFront Dynamic Unconstrained Income ETF had net inflows of $1.30M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2021-08 | $1.28M |
| 2021-07 | −$1.30M |
| 2021-06 | $0 |
| 2021-05 | $0 |
| 2021-04 | $0 |
| 2021-03 | $0 |
RFUN Debt Constituents
No individual debt constituents are reported in RiverFront Dynamic Unconstrained Income ETF's latest SEC N-PORT filing.
RFUN Prospectus and SEC Filings
Official RiverFront Dynamic Unconstrained Income ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2021-03-30
- Prospectus (485BPOS) — filed 2020-04-21
- Prospectus (485BPOS) — filed 2019-04-17
- Portfolio holdings (N-PORT) — filed 2021-10-29
- Portfolio holdings (N-PORT) — filed 2021-07-30
- Portfolio holdings (N-PORT) — filed 2021-04-27
- Annual census (N-CEN) — filed 2021-02-11
- Annual census (N-CEN) — filed 2020-02-07
Related Funds
Other Bond funds tracked on ABC INVEST:
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.