Formidable ETF

Formidable ETF (FORH) is an actively managed, concentrated stock fund whose managers hand-pick holdings and add an options overlay. They sometimes earn extra income by writing options on holdings, and they typically own options that gain value if small-company stocks or high-yield bonds fall, aiming to soften losses. The trade-offs are a 1.19% annual expense ratio and heavy concentration: Acacia Research alone was 10% of assets as of June 30, 2026.

• Over the year to Oct 27, 2026, FORH returned -11.1%.
• Its 5-year annualized return was +1.1%.
• Its worst full calendar year was 2024 (-5.6%); its best was 2025 (+16.3%).
• The deepest fall in its price history was 20.8% (Apr 20, 2022 to Apr 8, 2025), recovered by Sep 22, 2025.

As of Jun 30, 2026, the fund held 37 securities; the ten largest made up 46.37% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $631K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.34%, +0.08%, -2.77%.

FORH does not track an index. The adviser, Formidable Asset Management, and sub-adviser Tidal Investments pair top-down research on broad themes with bottom-up study of individual companies, weighing fundamentals, valuation and price trends. They look for companies that stand to benefit most from new trends in commerce, of any size or sector, in the US or abroad.

The fund is "non-diversified," meaning it can hold fewer companies in bigger amounts. Position sizes are the managers' call. As of June 30, 2026, the 10 largest positions were 46% of assets, led by Acacia Research at 10% and three Treasury bills at about 5% each. Portfolio turnover was 73.1%, so holdings change often.

The options overlay has two parts. When a holding looks volatile or nears the managers' target exit price, the fund may write a covered call: it collects cash, called a premium, for giving someone the right to purchase that stock at a set price, capping the fund's gain. Premiums help pay for the hedge, usually puts or put spreads (options that pay off when prices fall) on the iShares Russell 2000 ETF (IWM) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The fund may also use customizable FLEX options and volatility-linked ETFs or ETNs. Derivatives can create economic leverage: exposure larger than its assets.

• FORH charges 1.19% a year, versus an average of 0.85% for the similar funds below.
• Using the prospectus's standard example, $10,000 invested would cost about $121 in the first year and $1,443 over 10 years (assuming a 5% annual return).

With 10% in one stock, a 1.19% expense ratio and an uneven record, this concentrated, actively managed fund fits a small side position rather than a portfolio's foundation.

FORH launched in April 2021, so it has no record in the 2008 or 2020 crashes. Over the market's 2022 slump it lost 7.1%, though from its own peak to its low that year it fell 14.5%. Recovery was slow: after sliding to its deepest drop of 20.8% by April 8, 2025, it did not regain its April 20, 2022, high until September 22, 2025. Its worst calendar year was 2024, a 6.25% loss. Withdrawals taken during that stretch would have come from shares worth less than at the 2022 peak.

Income is modest: the yield over the 12 months to October 27, 2026, was 1.88%, paid once a year. Costs are high at 1.19% a year, or $1,443 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).