FundX Investment Conservative ETF

FundX Investment Conservative ETF (XRLX) is an actively managed ETF-of-ETFs, meaning it owns other ETFs rather than individual stocks or bonds. It held 19 ETFs as of June 30, 2026, spread across stocks, bonds, pooled corporate loans and arbitrage strategies, and its manager picks them with a trend-following method it calls “Upgrading.” Its 1.20% expense ratio is high. Despite the fund's name, growth and momentum stock ETFs were its largest holdings.

• Over the year to Oct 27, 2026, XRLX returned +5.9%, 8th of 8 among similar funds.
• Its worst full calendar year was 2025 (+7.9%); its best was 2024 (+17.6%).
• The deepest fall in its price history was 15.3% (Feb 14, 2025 to Apr 8, 2025), recovered by Aug 8, 2025.

As of Jun 30, 2026, the fund held 19 securities; the ten largest made up 63.37% of assets. It also reported 15.36% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors withdrew a net $3.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.24%, +4.26%, -0.19%.

XRLX does not track an index. FundX runs it with an active strategy called “Upgrading,” which tries to follow global market trends. The fund buys ETFs it judges to be in step with the parts of the market that are leading. It sells an ETF when it falls out of step or when a more attractive one appears. The prospectus sets no fixed weights or rebalancing calendar. Turnover was 84%, so the lineup changes often.

FundX sorts ETFs into five risk groups. From riskiest to safest, they are Sector Equity, Aggressive Equity, Core Equity, Total Return and Bond. This fund draws on the three milder groups. Core Equity ETFs hold broad mixes of U.S. and foreign companies. Total Return ETFs blend stocks and bonds, or use hedged methods such as long/short, market-neutral and arbitrage strategies. Bond ETFs can hold bonds of any maturity or credit quality, including high-yield “junk” bonds. Some of the ETFs it owns may also borrow money to increase their exposure.

Because XRLX is a fund of funds, its holdings are other ETFs. The largest as of June 30, 2026, were Vanguard Growth ETF (VUG, 9.2%), Invesco S&P 500 Top 50 ETF (XLG, 8.1%) and Invesco S&P 500 Momentum ETF (SPMO, 6.8%). It also held bond and loan funds, such as iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB, 5.3%) and Janus Henderson AAA CLO ETF (JAAA, 4.8%). JAAA invests in slices of pooled corporate loans.

• XRLX charges 1.2% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
• Of that, 1% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $122 in the first year and $1,455 over 10 years (assuming a 5% annual return).

It is designed to soften stock swings with bond and hedged-strategy ETFs, but it still lost 12.54% in 2022 and leaned toward growth stocks as of June 30, 2026.

XRLX aims for a gentler ride than an all-stock fund, but it is not low-risk. Its prospectus record starts in 2016, before the ETF listed in October 2023. That record shows a 12.54% loss in 2022, its worst calendar year. It also shows a 13.2% drop in the first quarter of 2020, though 2020 ended up 11.64%. It has no record for 2008. As an ETF, its deepest drop was 15.3%, from February 14 to April 8, 2025, and it recovered about four months later. Anyone who had to sell near that low to cover spending would have locked in the loss.

Income is modest. The trailing yield was 2.63% as of October 27, 2026, and the fund pays once a year. Costs are high at 1.20%, or $122 in the first year on $10,000 in the SEC's example. 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.