SDRYX — Swan Defined Risk Fund

Data updated: 2026-09-11

SDRYX — Swan Defined Risk Fund. United States Multi-Cap / All-Cap Blend / Core Equity · $589.99M AUM. Holdings, fees, performance and SEC filings.

SDRYX Fund Overview

SDRYX — Swan Defined Risk Fund is a US mutual fund managed by Northern Lights Fund Trust III, categorised as United States Multi-Cap / All-Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: Northern Lights Fund Trust III
Category: United States Multi-Cap / All-Cap Blend / Core Equity
Assets under management: $589.99M
1-year return: 20.1%
Ticker: SDRYX
SEC CIK: 0001537140
SEC series ID: S000037505
Share class ID: C000205837

SDRYX Investment Objective and Strategy

Swan Defined Risk Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust III.

Investment objective

The Fund seeks income and growth of capital.

Principal investment strategy

Using the sub-advisers proprietary Defined Risk Strategy (DRS) to select the Funds investments, the Fund seeks to achieve its investment objective by investing directly, or indirectly through exchange traded funds (ETFs), in: ? equity securities that are represented in the S&P 500 Index, ? exchange-traded long-term put options on the S&P 500 Index for hedging purposes, and ? buying and selling exchange-traded put and call options on various equity indices to generate additional returns. The DRS seeks to provide risk-managed growth of capital by matching or exceeding the long-term performance of the stock market while avoiding the traditional losses incurred during bear markets. The Fund invests primarily in equity securities of large capitalization (over $10 billion) US companies directly or through ETFs.

The Fund may also have small investments in equity securities of smaller and foreign companies through sector-based or S&P 500 Index ETFs. The sub-adviser anticipates income from dividend payments made by ETFs and individual securities, as well as income from short term trades and option premiums, although option income is also described as capital appreciation for tax and accounting purposes. The sub-adviser anticipates executing ETF trades through an exchange rather than trading directly with a fund. The DRS philosophy is based upon the sub-advisers research indicating that market timing and/or stock selection is extremely difficult, may produce volatile returns and that asset allocation is limited in its risk reduction. Using DRS, the sub-adviser seeks to define risk by seeking to protect against large losses by hedging equity ETFs through investments in protective long-term S&P 500 Index put options.

Additionally, the sub-adviser seeks to increase returns by buying and selling call and put options on several indices using hedging strategies. Defined Risk Strategy The DRS was created in 1997 by Randy Swan, President of the sub-adviser. The objective of the DRS is to provide risk-managed growth of capital by offering a strategy that seeks to match or exceed the long-term performance of the stock market without the traditional losses incurred during bear markets. The DRS philosophy is based upon the sub-advisers research indicating that market timing and/or stock selection is extremely difficult and that asset allocation is limited in its risk reduction properties. Hedging Process The sub-adviser applies a protective put hedging strategy to hedge the Funds equity exposure. The Fund invests in long-term put options (referred to as paying a premium) that gives the Fund the right to sell a security or index at a set (strike) price or sell the long-term put option on an option exchange.

The protective put strategy is executed using exchange-traded S&P 500 Index put options to hedge the portfolio and to reduce volatility. The protective put strategy seeks to limit downside loss. Generally, S&P 500 Index put options have an inverse relationship to the S&P 500 Index and its sector-specific constituents. Option Writing To generate additional returns, the sub-adviser buys and sells short-term (generally 1-3 month) (i) put and call options on equity indices, such as the S&P 500, Sector SDPR and Russell 2000, (ii) ETFs and (iii) futures on a regular basis. Additionally, the sub-adviser will regularly engage in various spread option strategies. Spread option strategies involve, for example, selling a 1-month call option while buying a 2-month call option. Each option strategy includes a hedging element so that the Fund is not exposed to significant losses on written options.

Rebalancing The sub-adviser may rebalance the ETF portfolio to maintain approximately equal weighting across the sectors of the S&P 500 to avoid excessive exposure to one economic sector. Long-term protective put options are typically traded annually to protect capital and/or allow for profit potential, by re-establishing a current-market strike price which depends on whether or not the market has increased or decreased. As discussed further below the sub-adviser intends on having very little portfolio turnover since most of the ETF portfolio will be held indefinitely. Written options are bought back when the sub-adviser believes they present an unfavorable risk and reward profile. Purchased options are sold when the sub-adviser believes they present an unfavorable risk and reward profile or when more attractive investments are available.

SDRYX Holdings

Top 10 holdings of Swan Defined Risk Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

Holding	% of net assets
Ishares Trust	59.40%
Select Sector Spdr Trust (the)	13.98%
Select Sector Spdr Trust (the)	4.00%
Select Sector Spdr Trust (the)	3.12%
Select Sector Spdr Trust (the)	3.08%
Select Sector Spdr Trust (the)	3.03%
Select Sector Spdr Trust (the)	2.72%
Select Sector Spdr Trust (the)	1.57%
Select Sector Spdr Trust (the)	1.04%
Select Sector Spdr Trust (the)	0.74%

View all SDRYX holdings

SDRYX Portfolio Allocation

Asset-class allocation of Swan Defined Risk Fund by percentage of net assets, from the latest SEC N-PORT filing.

Asset class	Allocation
Equity	93.9%
Cash & Equivalents	0.4%

SDRYX Performance

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

Period	Total return
1 year	20.1%
3 years (annualised)	9.0%

SDRYX Risk Information

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

1-year volatility (annualised): 6.8%

SDRYX Costs and Fees

SDRYX costs about $113 per $10,000 invested per year in fund expenses.

Net expense ratio: 1.13%
Gross expense ratio: 1.29%
Portfolio turnover: 12%
Brokerage commissions: 5.39 bps of average net assets (SEC N-CEN)

SDRYX Cashflows

Over the 12 months to 2026-06, Swan Defined Risk Fund had net outflows of $71.61M, from monthly SEC N-PORT filings.

Month	Net flow
2026-06	−$12.37M
2026-05	−$10.34M
2026-04	−$23.93M
2026-03	−$10.04M
2026-02	−$8.67M
2026-01	−$9.12M

SDRYX Debt Constituents

No individual debt constituents are reported in Swan Defined Risk Fund's latest SEC N-PORT filing.

SDRYX Prospectus and SEC Filings

Official Swan Defined Risk Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other United States Multi-Cap / All-Cap Blend / Core Equity 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.