Aptus Defined Risk ETF

The Aptus Defined Risk ETF (DRSK) is an actively managed fund of funds. It puts 75% to 95% of its assets into investment-grade bond ETFs and gets its stock exposure by purchasing options rather than shares, with put options meant to limit losses. Unlike buffer funds, it has no preset floor. Its 0.79% expense ratio is below the 0.86% average of the buffer funds it is often grouped with.

• Over the year to Oct 27, 2026, DRSK returned -4.1%, 8th of 8 among similar funds.
• Its 5-year annualized return was +2.1%.
• In the 2020 COVID crash it fell 8.2% and regained its old high 0.9 months after the low.
• Its worst full calendar year was 2022 (-9.6%); its best was 2020 (+13.8%).
• The deepest fall in its price history was 19.9% (Nov 5, 2021 to Oct 31, 2023), recovered by Aug 15, 2024.

As of Jul 31, 2026, the fund held 10 securities; the ten largest made up 94.3% of assets.

• Over the three months to Jul 31, 2026, investors added a net $42.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.49%, -1.85%, -1.16%.

DRSK doesn't track an index. Aptus Capital Advisors, the fund's adviser, splits the portfolio between bonds and stocks. Typically 75% to 95% goes into bond ETFs that track indexes of investment-grade bonds, which are bonds rated as having a lower risk of default. As of July 31, 2026, ten term corporate bond ETFs from Invesco BulletShares and iShares iBonds made up 94.3% of assets. Each holds bonds that mature around a single year, from 2029 to 2034. The largest were BSCW at 12.1% and BSCV at 11.8%. The bond side is rebalanced quarterly.

The stock side uses call options. A call option is the right to purchase a stock at a set price before a set date, in exchange for an upfront payment called a premium. Aptus chooses stocks with a "yield plus growth" screen that looks at yield, growth, valuation and momentum. It may also use options on indexes or ETFs. The options run one week to six months and are reset monthly, with 0.25% to 1.00% of assets per stock. The fund may also write calls, which brings in premium but limits gains above the strike price. It also uses put options to limit losses when markets fall. As of July 31, 2026, options made up 1.31% of assets, led by calls on Amazon and Broadcom. If stocks fall, a call can lose its whole premium, but no more.

• DRSK charges 0.79% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.69% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).

Most of the fund is in investment-grade corporate bond ETFs, with only a small, options-based slice tied to stocks.

DRSK could add a mostly-bond holding with some stock upside. Its trailing 12-month yield was 4% ($1.09 per share) as of October 27, 2026, paid quarterly. It launched in 2018, so it has no record from 2008. In the 2020 COVID crash it fell 8.2% and recovered within a month. In the 2022 bear market it fell 11.7% and did not recover until June 2024. Its worst calendar year was 2022, at -9.43%. Its deepest drop, 19.9% from November 2021 to October 2023, was not made up until August 2024. That is a reminder that its bonds carry interest-rate risk, and that money withdrawn during those years came out of a smaller balance. In the SEC's standard example, costs on $10,000 come to $81 after one year and $978 after ten. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.