Fund Evaluator:
Swan Defined Risk I (SDRIX)
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Fund Details
Swan Defined Risk I Overview
Swan Defined Risk I (SDRIX) is an actively managed Nontraditional Equity Equity Hedged fund. Swan launched the fund in 2012.
The investment seeks long term capital appreciation. The fund seeks to achieve its investment objective by investing directly, or indirectly through exchange traded funds ("ETFs"), in equity securities that are represented in the S&P 500 Index, exchange-traded long-term put options on the S&P 500 Index for hedging purposes, and buying and selling exchange-traded put and call options on various equity indices to generate additional returns.
About Swan Defined Risk I (SDRIX)
There are 3 members of the management team with an average tenure of 10.50 years: Robert Swan (2016), Christopher Hausman (2018), Randy Swan (2012). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Swan Defined Risk I has 19 securities in its portfolio. The top 10 holdings constitute 97.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Swan Defined Risk I is part of the Equity global asset class and is within the Nontraditional Equity fund group. Swan Defined Risk I has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.8%. There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Swan Defined Risk I has 0.6% of the portfolio in cash.
Assets Under Management
The fund has $415 million in total assets, which is below the $432 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
SDRIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Swan Defined Risk I expense ratio is high compared to funds in the Equity Hedged category. Swan Defined Risk I has an expense ratio of 1.25%, which is 10% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Swan Defined Risk I has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 69% for the Equity Hedged category.
Recently, in the month of July 2026, Swan Defined Risk I returned -0.8%, which earned it a grade of D, as the Equity Hedged category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Swan Defined Risk I has a trailing yield of 0.00%, which is below the 0.94% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Swan Defined Risk I Grades
Year to date, the fund has returned 4.9%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 11.8% over the past year (grade of C), 10.3% over the past three years (grade of C) and 6.0% per year over the past five years (grade of C) and 6.1% per year over the past 10 years (grade of D).
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SDRIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SDRIX Return (NAV) | -0.8% | 2.6% | 11.8% | 10.3% | 6.0% | 6.1% |
| SDRIX Grade | D | B | C | C | C | D |
| +/- Category | -0.7% | 0.5% | 1.2% | 0.5% | 0.1% | -0.5% |
| Equity Hedged Avg | -0.0% | 2.1% | 10.6% | 9.9% | 5.9% | 6.6% |
| SDRIX Tax Cost Ratio | na | na | 2.3% | 2.1% | 1.3% | 0.8% |
SDRIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SDRIX Return (NAV) | 4.9% | 10.7% | 11.5% | 12.4% | -12.8% | 17.4% | 5.2% | 12.7% | -8.8% | 10.2% | 7.1% |
| SDRIX Grade | D | B | D | C | D | A | D | C | F | B | B |
| +/- Category | -0.5% | 1.3% | -0.7% | 0.0% | -3.1% | 6.2% | -5.6% | -1.4% | -6.1% | 1.4% | 2.6% |
| Equity Hedged Avg | 5.4% | 9.4% | 12.2% | 12.3% | -9.8% | 11.3% | 10.8% | 14.1% | -2.7% | 8.9% | 4.5% |
| Risk Measures | |
| Standard Deviation: | 7.4% |
| Total Risk Index: | 0.61 - Below Average |
| Category Risk Index: | 0.94 - Average |
| Category Risk Grade: | C (41% Rank) |
| Beta: | 0.53 |
| R-Squared: | 85% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $578 Mil |
| Fund Total Assets: | $ 415 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 12% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 14.0 years | |||
| Average Tenure: 10.5 years | |||
| Managers (Year): Swan Randy (2012), Swan Robert (2016), Hausman Christopher (2018) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 19 |
| % in Top 10 Holdings: | 97.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.6% |
Portfolio Allocation |
|
| Domestic Stock: | 98.8% |
| Foreign Stock: | 0.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.6% |
Purchase Information
| Fund Family: | Swan |
| Phone Number: | 877-896-2590 |
| Website: | www.swandefinedriskfund.com |
| Status: | Open |
| Inception Date: | July 30, 2012 |
| Min. Initial Purchase: | $100,000 |
| Min. Initial IRA Purchase: | $100,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.25% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.39% |
| Share Class: | Swan Defined Risk I |
| Min. Subsequent Purchase: | $ 500 |
| Min. Subsequent IRA Purchase: | $ 500 |
