RH Tactical Rotation ETF

RH Tactical Rotation ETF (RHRX) is an actively managed fund that owns other ETFs. Its prospectus now calls it the Adaptive Tactical Rotation ETF. It pairs an S&P 500 core with rotating growth, value and sector funds. When its model sees a falling market, it can move into cash, Treasury bond funds or inverse ETFs. That flexibility comes with a 1.38% expense ratio and 227% portfolio turnover, and the fund has recorded no distributions.

• Over the year to Oct 27, 2026, RHRX returned +16.2%, 2nd of 5 among similar funds.
• Its worst full calendar year was 2022 (-20.1%); its best was 2024 (+22.2%).
• The deepest fall in its price history was 25.3% (Dec 29, 2021 to Oct 14, 2022), recovered by May 15, 2024.

As of May 31, 2026, the fund held 5 securities; the ten largest made up 98.3% of assets, and 2.43% sat in cash and money-market holdings.

• Over the three months to May 31, 2026, investors added a net $12.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -2.80%, +10.47%, +5.20%.

RHRX does not track an index. The advisor splits the portfolio into a core segment and an opportunistic segment. The core targets about 25% in large US companies, usually through ETFs that track the S&P 500. It may be hedged with put and call options, which are contracts that gain value when prices fall below or rise above a set level. In the opportunistic segment, about 25% goes to large-cap growth or value ETFs. The advisor's Growth or Value Indicator picks between them by comparing the past performance and momentum of the S&P 500 Growth and S&P 500 Value indexes. The other 50% or so goes to three roughly equal sector positions, chosen from 15 sector ETFs. Each sector gets a ranking from Bullish to Bearish based on momentum, valuation, how it holds up in rising and falling markets, and market breadth.

A risk model tracks price trends and volatility. When it signals trouble, the fund may hold a lot of cash, Treasury bond ETFs, exchange-traded notes, volatility products or inverse ETFs, which are built to rise when stocks fall. Leveraged and inverse ETFs reset daily, so over longer periods their returns can drift from their targets.

As of May 31, 2026, the largest holdings were a State Street SPDR fund (47.0%), a SPDR Portfolio S&P 500 fund (18.3%), the iShares PHLX Semiconductor ETF (16.1%), and industrial (8.5%) and materials (8.4%) sector funds.

• RHRX charges 1.38% a year, versus an average of 1.28% for the similar funds below (3rd of 5, cheapest first).
• Of that, 1% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.88% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $140 in the first year and $2,527 over 10 years (assuming a 5% annual return).

RHRX is a costly, heavily traded tactical stock strategy, and its downside controls did not prevent a deep loss in 2022, so it fits as a small add-on rather than a foundation.

RHRX could add a rules-based way to rotate among sectors and step out of stocks. Its record shows the limits of that approach. The prospectus reports a 19.76% loss in the first quarter of 2020 and a 19.85% loss in 2022, its worst calendar year. The fund fell 25.3% from its December 29, 2021 peak to October 14, 2022, and it did not get back to that peak until May 15, 2024, about 19 months later. Someone who had to sell shares in late 2022 would have locked in much of that loss. The fund has no record from the 2008 crisis. It has recorded no distributions, so it provides no income. It costs 1.38% a year, or $140 in the first year on $10,000 in the SEC's standard example, above the 1.28% average of similar funds. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

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