At a glance
CAOS charges 0.63% a year. It has $705.1M in assets. Over the past year it returned +1.5% with distributions reinvested (S&P 500: +11.5%); over three years it returned +4.1% a year.
The short version
Alpha Architect Tail Risk ETF (CAOS) is an actively managed fund that holds options on the S&P 500 instead of stocks. It aims for modest steady returns and a payoff if the market crashes. Its exposure to the index can swing between 120% and -40%. It also keeps protective options, which gain value when stocks plunge. It charges 0.63% a year and had paid no distributions through October 27, 2026.
Price history
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CAOS +1.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CAOS official prospectus, to Dec 31, 2025 | — | +2.58% | — | +1.55% | +3.05% | +3.47% |
| CAOS price data to Oct 27, 2026 | +1.7% | +1.5% | +4.1% | — | — | +6.8% |
- Over the year to Oct 27, 2026, CAOS returned +1.5%.
- Its worst full calendar year was 2025 (+2.6%); its best was 2024 (+5.3%).
- The deepest fall in its price history was 3.6% (Apr 8, 2025 to May 9, 2025), recovered by Oct 16, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.7% | — |
| 2025 | +2.6% | +2.58% |
| 2024 | +5.3% | +5.24% |
| 2023 | — | +13.30% |
| 2022 | — | -14.14% |
| 2021 | — | +2.83% |
| 2020 | — | +22.42% |
| 2019 | — | +3.20% |
| 2018 | — | -6.36% |
| 2017 | — | +4.75% |
| 2016 | — | +0.95% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Jun 30, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jun 30, 2026, investors added a net $40.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.23%, -0.10%, -0.11%.
How it works
CAOS is actively managed by Arin Risk Advisors and Alpha Architect, sub-advisers for the issuer, ETF Architect. It owns no stocks and tracks no index. It trades options: contracts that give the right to buy (calls) or sell (puts) at a set price by a set date. Most are options on the S&P 500 (SPX options) or on SPY, an ETF that follows that index. When the fund sells an option, it collects a payment called a premium. It profits as the option loses value over time, a decay traders call "theta." Its exposure to the index can range from 120% to -40%, so at times it may briefly bet against the market.
The fund also holds protective options aimed at a "tail risk event." That means the index drops more than 25% within a few months and expected volatility stays above 50, as in 2008-09 and 2020. As of June 30, 2026, nearly all of its 13 positions were options. The largest was a deep in-the-money SPY put expiring September 18, 2026, at 89.55% of net assets. Paired with a SPY call, it looks like a box spread, which the prospectus calls a synthetic bond. Small SPX puts at strikes of 2,600 and 2,800 appear to be the crash protection.
Portfolio turnover was 90%. If the index rises past certain levels, gains are capped at the premium received. Options the fund sells can lose more than that premium.
What it really costs
- CAOS charges 0.63% a year.
- Using the prospectus's standard example, $10,000 invested would cost about $64 in the first year and $786 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CAOS | $64 | $202 | $351 | $786 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
Its prospectus says it aims to limit losses and profit from sudden market crashes, not to deliver growth or income.
CAOS could sit beside stock funds as crash protection. The ETF began trading in March 2023, but its prospectus reports returns from earlier years. It gained 22.42% in 2020, and its strongest quarter, the one ending March 31, 2020, rose 28.99%. In 2022's slow bear market it lost 14.14%, its worst calendar year. Since launch, its deepest drop was 3.6%, from April 8 to May 9, 2025. Recovery took about 17 months, until October 16, 2026. So it may not cushion every downturn. It paid no distributions through October 27, 2026, so selling shares would be the only way to raise cash from it. It costs 0.63% a year, or $64 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a sleeve designed to profit from sudden crashes like 2008-09 and 2020, and who accept modest returns in calmer years.
- People comfortable with an all-options portfolio, 90% turnover, and managers who shift S&P 500 exposure anywhere from 120% to -40%.
- Investors who value small price swings: three-year volatility was 3.5% and one-year beta was -0.04 as of October 27, 2026.
Look elsewhere if
- Retirees who need regular cash flow, since no distributions were recorded through October 27, 2026.
- Investors seeking stock-market growth: the prospectus shows 1.55% a year over five years and 3.05% over ten through December 31, 2025.
- Anyone expecting protection in every downturn: the prospectus shows a 14.14% loss in 2022 and a worst quarter of -14.16%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is CAOS a good hedge against a stock market crash?
Partly. CAOS holds protective put options, which gain value when the S&P 500 falls. They are meant to pay off in a "tail risk event," meaning a drop of more than 25% within a few months with expected volatility above 50, as in 2008-09 and 2020. The prospectus shows a 22.42% gain in 2020. But in 2022's slower bear market the fund lost 14.14%. It is built for sudden crashes, not every decline.
Does CAOS pay dividends?
No. CAOS recorded no distributions through October 27, 2026, even though its strategy collects option premiums. Any gains have shown up in the share price instead. Investors who need cash would have to sell shares. If the fund pays out option income in the future, that income is usually taxed as ordinary income rather than at the lower rate for qualified dividends.
What is the CAOS expense ratio?
CAOS charges 0.63% a year, all of it a management fee, according to its prospectus filed January 28, 2026. The SEC's standard example assumes $10,000 invested and a 5% annual return. On that basis, costs would total about $64 after one year, $202 after three, $351 after five and $786 after ten. The expense ratio does not include the trading costs from the fund's 90% portfolio turnover.
How has CAOS performed?
Modestly. The prospectus shows average annual returns through December 31, 2025 of 2.58% over one year, 1.55% over five years and 3.05% over ten. The longer figures include years before the ETF launched on March 6, 2023. Based on market price, CAOS returned 1.5% over the year to October 27, 2026 and 4.1% a year over three years. Its three-year volatility, a measure of price swings, was 3.5%.
How is CAOS different from an S&P 500 index fund?
They work very differently. An index fund owns the stocks and rises and falls with the market. CAOS owns only options on the S&P 500 and on SPY, and it does not track the index. Its market exposure can range from 120% to -40%. Its one-year beta, a measure of how closely it moves with the market, was -0.04 as of October 27, 2026. It gives up some upside when markets rise strongly.