ALPS Active Equity Opportunity ETF

ALPS Active Equity Opportunity ETF (RFFC) is an actively managed fund of mostly U.S. stocks, chosen from dividend payers and businesses earning high or improving returns on the capital they invest. It may suit investors who want a manager, not an index, choosing stocks, but its 0.48% expense ratio is over double the 0.22% average of similar funds, and it trailed the S&P Composite 1500 Index over five years through December 31, 2025.

• Over the year to Oct 27, 2026, RFFC returned +16.7%, 1st of 9 among similar funds.
• Its 5-year annualized return was +12.0% and its 10-year +13.0%.
• In the 2020 COVID crash it fell 36.2% and regained its old high 5.4 months after the low.
• Its worst full calendar year was 2022 (-14.6%); its best was 2019 (+24.8%).
• The deepest fall in its price history was 36.3% (Feb 12, 2020 to Mar 23, 2020), recovered by Sep 2, 2020.

As of Aug 31, 2026, the fund held 58 securities; the ten largest made up 41.06% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $1.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.68%, -0.81%, +2.42%.

RFFC has no index to follow; its managers pick stocks. Normally it keeps at least 80% of net assets in equities, which can include real estate investment trusts (REITs, companies that own or finance property). The main deciding factor is a mix of dividend-paying stocks and companies with high or improving return on invested capital (ROIC), a measure of the profit a business earns on the money put into it. Managers research companies one by one, a “bottom up” approach, while weighing economic factors such as interest rates.

It can own small, mid-size and large companies, normally keeps at least 75% of net assets in U.S. issuers, may invest heavily in financial services and can hold other ETFs or closed-end funds. The prospectus summary gives no weighting formula or rebalancing schedule. Managers may drop a stock if earnings or cash flow weaken, if its price looks expensive next to other holdings, after a change in management or control, or to raise cash. Turnover, the share of the portfolio replaced in a year, was 42%.

As of August 31, 2026, it had 58 holdings, with 41% in the top 10, led by Microsoft (5.8%), Nvidia (5.4%), Apple (5.2%), Taiwan Semiconductor (5.0%) and Alphabet (4.7%). Technology, the largest sector, was 27.7%. It held no derivatives: no leverage, swaps or options.

• RFFC charges 0.48% a year, versus an average of 0.22% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $49 in the first year and $603 over 10 years (assuming a 5% annual return).

With 58 holdings, 41% of assets in the top 10 as of August 31, 2026, and a 0.48% fee, it works more as an active add-on to a broad, low-cost stock core than as the core itself.

RFFC is almost all stocks, so it adds growth potential, not cushioning. Launched in June 2016, it has no 2008 record. Its deepest drop came in the 2020 COVID crash: 36.3% from February 12 to March 23, fully recovered by September 2, 5.4 months after the low. In the 2022 bear market it fell 22.3% and took 14.6 months, until December 18, 2023, to recover; 2022 was its worst calendar year, a 14.6% loss. Drawing income in a slump like 2022 means cashing out shares at depressed prices for over a year.

Income is small despite the dividend screen: the trailing 12-month yield was 0.64% as of October 27, 2026, paid quarterly. The 0.48% fee costs $49 after one year and $603 after 10 in the SEC's standard $10,000 example. 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.