Gabelli Commercial Aerospace and Defense ETF

Gabelli Commercial Aerospace and Defense ETF (GCAD) is an actively managed fund that holds dividend-paying aerospace and defense stocks. Its holdings range from Boeing and Lockheed Martin to smaller suppliers such as Albany International and Moog. The fund's 0.90% management fee is fully waived, which leaves a 0% expense ratio in the April 30, 2026 prospectus, compared with a 0.46% average for similar funds. With about $43.7 million in assets as of June 30, 2026, it is far smaller than its rivals.

• Over the year to Oct 27, 2026, GCAD returned +6.2%, 2nd of 8 among similar funds.
• Its worst full calendar year was 2024 (+26.5%); its best was 2025 (+39.3%).
• The deepest fall in its price history was 17.8% (Aug 14, 2026 to Oct 23, 2026), not yet recovered.

As of Jun 30, 2026, the fund held 54 securities; the ten largest made up 47.47% of assets.

• Over the three months to Jun 30, 2026, investors added a net $13.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.85%, +7.52%, +1.92%.

GCAD does not track an index. Its adviser, part of GAMCO Investors, picks the stocks. Under normal conditions, at least 80% of net assets go into income-producing stocks in the aerospace and defense sectors. As a fixed policy, at least 25% must stay concentrated in those industries. A company counts if it earns at least 50% of its revenue from aerospace or defense work, or puts at least 50% of its assets there. The fund can buy US-listed common and preferred stock of any size. It can also hold foreign companies through American Depositary Receipts (US-traded shares that stand in for a foreign stock).

When choosing stocks, the manager looks for a dividend yield above the average for the S&P 500 Index, plus room for the share price to grow. It favors companies with strong free cash flow (cash left after running and investing in the business), regular dividends and earnings growth. It also looks for a possible "catalyst," such as a spin-off or a change in management. The manager may buy preferred stock of struggling companies, because those shares can rise sharply if the business recovers.

The fund is non-diversified, which means it can put a large share of its money into a few companies. As of June 30, 2026, it held 54 positions. The top 10 made up about 47% of assets, and a Treasury bill made up about 3%. The fund uses no leverage or derivatives. Portfolio turnover was 9%, so the manager trades little.

• GCAD charges 0% a year, versus an average of 0.46% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.9% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.9% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $0 in the first year and $1,035 over 10 years (assuming a 5% annual return).

It is a concentrated, non-diversified bet on one sector with a short record, so it fits better as a small addition than as a foundation.

GCAD could add focused exposure to aerospace and defense companies, along with a modest income stream. The trailing 12-month yield was 1.99% as of October 27, 2026, paid once a year. Its record is short. The fund launched on January 3, 2023, so it never went through the 2008, 2020 or 2022 sell-offs. Every full calendar year has been positive, according to the prospectus; the weakest was 2023 at 14.14%. Still, the fund fell 17.8% from August 14 to October 23, 2026, and it had not recovered as of October 27, 2026. A retiree who had to sell during a drop like that would lock in losses. Funds that focus on one sector can also fall harder than the broad market.

The 0% expense ratio depends on a fee waiver. The SEC's standard example shows $1,035 in costs over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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