Abacus FCF Innovation Leaders ETF

Abacus FCF Innovation Leaders ETF (ABOT) tracks the Abacus FCF Innovation Leaders Index, about 50 US-listed companies with strong free cash flow (cash left after paying for operations and investment) and heavy research spending. As of July 31, 2026, Apple, Nvidia and Broadcom led its tech-heavy portfolio, and about $4 million in assets made it the smallest of its peers. Its 0.39% expense ratio, after a fee waiver, is near the 0.36% peer average.

• Over the year to Oct 27, 2026, ABOT returned +14.2%, 6th of 9 among similar funds.
• Its worst full calendar year was 2025 (+8.4%); its best was 2025 (+8.4%).
• The deepest fall in its price history was 22.7% (Feb 18, 2025 to Apr 8, 2025), recovered by Jul 3, 2025.

As of Jul 31, 2026, the fund held 50 securities; the ten largest made up 32.48% of assets. It also reported 3.52% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $1.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.57%, -4.06%, +4.37%.

ABOT aims to match, before fees, the Abacus FCF Innovation Leaders Index. Its index provider is an affiliate of the adviser, Abacus FCF Advisors LLC, a potential conflict the prospectus discloses. To qualify, a stock must be US-listed, pass a size screen excluding the smallest companies, average over $75 million in monthly trading over six months, and report free cash flow and positive research and development (R&D) spending over the past 12 months.

The adviser's model scores each company on free cash flow return on invested capital (FCF-ROIC), roughly the spare cash produced per dollar of capital invested, then adds a measure of R&D spending. The index sets weights from that score, adjusts them for each stock's price volatility over the past 12 months, and blends in free-float market value (the value of shares available to trade). Selection stops at 50 stocks or once holdings cover over 90% of eligible stocks' combined weight.

The index resets weights and reselects stocks every quarter, with a 25% turnover cap. The prospectus filed November 26, 2025 showed 79% portfolio turnover (the share of holdings replaced yearly); trading costs aren't in the expense ratio. The fund may use exchange-traded futures but held none as of July 31, 2026. As of September 30, 2025, the index was concentrated in information technology.

• ABOT charges 0.39% a year, versus an average of 0.36% for the similar funds below (5th of 9, cheapest first).
• Of that, 0.59% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.2% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $719 over 10 years (assuming a 5% annual return).

It holds a concentrated, tech-heavy group of about 50 stocks, pays little income and lost 24.05% in 2022, so it fits as a small slice beside broader funds rather than as a core.

ABOT could add a concentrated stake in US companies with strong free cash flow and heavy research spending. It launched December 7, 2020, after the 2008 crisis and 2020 COVID crash, so it has no record for either. In 2022, a bear market year, it lost 24.05%, its worst calendar year, including a 17.14% drop in the second quarter. Since December 13, 2024, its deepest fall was 22.7%, from February 18 to April 8, 2025; it recovered by July 3, 2025, about 2.8 months after the low. Withdrawing money during a slide like that would have locked in losses.

Income is minimal: a 0.24% yield over the 12 months to October 27, 2026, paid quarterly. The 0.39% expense ratio is slightly above the 0.36% average of similar funds. Past results don't predict future ones, and a retirement plan should weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.