At a glance
DRAI charges 1.32% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $20.9M in assets, the 8th largest of that group; it paid 1.69% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +7.6% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
Draco Evolution AI ETF (DRAI) is an actively managed fund of funds that uses an AI-driven model to shift among ETFs for stocks, Treasuries, gold and the US dollar, seeking growth while trying to limit swings. It stands apart for holding leveraged ETFs, trading heavily (1,741% portfolio turnover) and charging 1.32% a year, high for an ETF. It is small, with about $20.9 million in assets as of August 31, 2026.
Price history
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DRAI +7.6% 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 | |
|---|---|---|---|---|---|---|
| DRAI official prospectus, to Dec 31, 2025 | — | +33.62% | — | — | — | +16.56% |
| DRAI price data to Oct 27, 2026 | +8.6% | +7.6% | — | — | — | +13.6% |
- Over the year to Oct 27, 2026, DRAI returned +7.6%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+33.7%); its best was 2025 (+33.7%).
- The deepest fall in its price history was 13.7% (Jul 16, 2024 to Apr 8, 2025), recovered by May 14, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.6% | — |
| 2025 | +33.7% | +33.62% |
| 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 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2800 | |
| 2025 | $0.4500 |
What's inside
As of Aug 31, 2026, the fund held 5 securities; the ten largest made up 80.2% of assets, and 19.81% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| WisdomTree Bloomberg U.S. Dollar Bullish Fund | 32.74% | |
| iShares 20+ Year Treasury Bond ETF | 21.13% | |
| iShares Gold Trust | 13.26% | |
| ProShares UltraPro QQQ | 6.59% | |
| Direxion Daily S&P 500 Bull 3X ETF | 6.48% |
By country
United States 80.2%By asset type
Stocks 80.2%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $1.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.73%, -4.46%, +0.77%.
How it works
DRAI, offered through ETF Architect, is actively managed, not tied to an index. Its sub-adviser, Draco Evolution Corp., uses a proprietary system, the Draco Model, to choose among US stocks, bonds, gold, foreign securities and currencies. It expects to hold 10 to 20 other ETFs, possibly including leveraged ETFs and inverse ETFs, which aim to gain when markets fall. Being non-diversified, it can concentrate in a few holdings.
The Draco Model has two parts. An AI model, trained on past price trends and momentum, makes short-term calls on market direction and drives about 70% of the choices and weights. A second model reads slower economic data, such as jobless claims and the gap between long- and short-term interest rates, to make the mix more aggressive or more conservative. The sub-adviser may override the model in extreme conditions.
Trading is heavy: yearly portfolio turnover was 1,741%, meaning it traded many times its own value. As of August 31, 2026, it held five ETFs plus about 20% cash: USDU, a bet on a stronger dollar (32.7%); TLT, long-term Treasuries (21.1%); IAU, gold (13.3%); and leveraged stock funds TQQQ and SPXL (about 6.5% each). DRAI isn't leveraged itself, but those funds target a multiple of each day's index return, so over longer periods their results can stray from that multiple.
What it really costs
- DRAI charges 1.32% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $134 in the first year and $1,590 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| DRAI | $134 | $418 | $723 | $1,590 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
Its short record, small size, 1.32% fee and an AI model that can hold leveraged and inverse ETFs point to a small position rather than a core one.
DRAI could add a model-driven mix of stocks, long-term Treasuries, gold and the dollar, aiming for smoother returns. It launched on July 10, 2024, missing the 2008, 2020 and 2022 downturns. Its only full calendar year, 2025, was a 33.6% gain, so there is no losing year to study. Its deepest drop, 13.7%, ran from July 16, 2024 to April 8, 2025; it recovered by May 14, 2025. Anyone withdrawing money during that slide would have done so at lower prices, and its leveraged holdings could deepen a future drop.
Income is modest: it paid 1.69% of its price over the 12 months to October 27, 2026, in quarterly payments. Costs are high, at 1.32% a year, or $1,590 over 10 years on $10,000 in 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 wanting a small slice of their portfolio to move among stocks, long-term Treasuries, gold and the US dollar on an AI model's signals.
- Those comfortable with heavy trading (1,741% turnover) and a model that can hold leveraged ETFs such as TQQQ and SPXL.
- Investors who accept a short record: a 33.6% gain in 2025 and a 13.7% deepest drop since the July 2024 launch.
Look elsewhere if
- Cost-conscious investors: the 1.32% expense ratio adds up to $1,590 over 10 years on $10,000 in the SEC's standard example.
- Income seekers: the trailing yield was 1.69% as of October 27, 2026, and payouts can shift as holdings change.
- Anyone wanting a long track record or a large fund: DRAI had about $20.9 million in assets as of August 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DRAI this fund | 1.32% | $20.9M | +7.6% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does DRAI invest in?
DRAI invests in other ETFs picked by its AI-driven model, not in individual stocks or bonds. As of August 31, 2026, it held five: WisdomTree Bloomberg U.S. Dollar Bullish Fund (32.7%), iShares 20+ Year Treasury Bond ETF (21.1%), iShares Gold Trust (13.3%), ProShares UltraPro QQQ (6.6%) and Direxion Daily S&P 500 Bull 3X ETF (6.5%), plus about 20% in cash. The last two are leveraged stock funds. The mix can change quickly as the model shifts.
How has DRAI performed since it launched?
DRAI gained 33.62% in 2025, its first full calendar year, according to its prospectus. Its strongest quarter, ended June 30, 2025, added 22.23%. From its July 10, 2024 launch through December 31, 2025, it averaged 16.56% a year. Over the year to October 27, 2026, it returned 7.6%, and 8.6% for 2026 through that date. With just over two years of history, these figures say little about long-term results.
What is DRAI's expense ratio?
DRAI's expense ratio is 1.32% a year, according to its prospectus filed September 25, 2026. The management fee accounts for 0.85%; the rest covers other expenses, which for a fund that owns other ETFs can include those funds' own fees. In the SEC's standard example, $10,000 earning 5% a year would cost about $134 in the first year, $723 over five years and $1,590 over 10. Trading costs from its heavy turnover are not included in the expense ratio.
Does DRAI pay dividends?
Yes, DRAI pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $0.55 per share, a trailing yield (the past year's payouts divided by the share price) of 1.69%. Because the fund owns other ETFs, its payouts depend on what those holdings pay and can swing as the model changes them. Income is not the aim: the fund's stated objective is long-term capital appreciation, meaning growth.
What's the difference between DRAI and BUFR?
BUFR is a buffer ETF; DRAI is not. FT Vest Laddered Buffer ETF (BUFR) relies on options to cushion part of a stock market loss over set periods, in exchange for a cap on gains. DRAI has no buffer or cap; its AI model moves among ETFs for stocks, bonds, gold and the dollar. BUFR is much larger, about $10.5 billion versus $20.9 million as of August 31, 2026, and cheaper, at 0.95% versus 1.32%. Over the year to October 27, 2026, BUFR returned 11.6% and DRAI 7.6%.