Donoghue Forlines Lists Risk-Managed ETF on NYSE ARCA

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11/18/2025 - 07:03 AM

(DFTT) uses advanced technical trading techniques to mitigate impact of market drawdowns

BOSTON--(BUSINESS WIRE)-- The DF Tactical 30 ETF (Ticker: DFTT) started trading on the NYSE ARCA on November 12, 2025. The ETF applies a disciplined rules-based investment approach by allocating to companies exhibiting strong momentum characteristics in favorable market environments, but attempts to reduce market exposure when conditions soften. The underlying index, the DF Risk-Managed Tactical Top 30 Index, was developed by Donoghue Forlines in conjunction with Syntax Indexes.

The largest 100 U.S. stocks have outperformed the S&P 500 Index over the trailing 1, 2, 3, 5, 7, 10, 15, and 20 year period ending September 30, 2025 (Paul Kenney, Syntax, Pure Momentum with Downside Risk Management, Oct. 23, 2025, pp. 2-3). The DF Risk-Managed Tactical Top 30 Index utilizes a proprietary methodology to identify and rotate quarterly amongst the thirty top momentum stocks within the one hundred largest U.S. stocks. Technical trend following indicators are then applied to seek to identify a downtrend condition with the possibility of a continuation of a drawdown. When a downtrend is signaled, assets transition from equities into U.S. treasuries.

Momentum investing is well documented to outperform the broader market in bullish cycles and underperform in bearish cycles (Paul Kenney, Syntax, Pure Momentum with Downside Risk Management, Oct. 23, 2025, pp. 2-3).

“In creating this index, we sought to harvest the outperformance of momentum factor investing, while seeking to mitigate significant drawdowns during lengthy deep recessive periods,” said Jeff Thompson, Chief Executive Officer of Donoghue Forlines.

“The index was developed to apply a straightforward, repeatable framework across changing market conditions,” said Andrei Senyuk, Head of Index Product at Syntax Data. “We are excited to support Donoghue Forlines in delivering this disciplined risk-managed exposure to investors.”

“Markets are balancing between the growth prospects of AI-driven innovative technological advances and richly priced equity valuations,” added Thompson. “DFTT utilizes a combination of rotational momentum with a tactical overlay seeking to harness upside potential while attempting to provide a hedge against the inevitable recessive environment.”

ABOUT DONOGHUE FORLINES

Donoghue Forlines is a Boston-based tactical investment firm that has specialized in active risk-managed portfolios since 1986. We offer a full suite of proactive strategies designed to help advisors and their clients de-risk when market circumstances warrant it, enabling them to stay disciplined to meet their investment objectives. For more information, please click here, or email info@donoghueforlines.com, or call 1(800) 642-4276.

ABOUT SYNTAX DATA

Syntax Data is a financial data and technology company that empowers investment managers, wealth advisors, and financial institutions with precise, transparent data solutions that optimize index development, portfolio customization, and investment analysis to drive better investment outcomes. Syntax operates through three segments: Affinity® Data, Syntax Direct, and Syntax Indices. Built on its patented Functional Information System (FIS®) technology inspired by systems sciences, Syntax’s solutions are powered by the most comprehensive, granular, and accurate revenue-derived data available on the market. Learn more at www.SyntaxData.com.

Past performance is no guarantee of future results. ETFs involve risk including possible loss of principal. An investor should consider the ETF’s investment objectives, risks, charges, and expenses carefully before investing. This and other information about the ETF is contained in the prospectus, which can be obtained by calling toll free 1-800-642-4276. Please read the prospectus carefully before investing.

The Donoghue Forlines ETFs are distributed by Northern Lights Distributors LLC, member FINRA/SIPC. Donoghue Forlines LLC is not affiliated with Northern Lights Distributors, LLC.

Important Risks:

The ETF is newly formed and has limited operating history. One cannot invest in an index.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. The value of the fund’s shares, when redeemed, may be worth more or less than their original cost. While the shares of ETFs are tradeable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns.

Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions. Large-cap companies may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.

The Fund’s Index, and consequently the Fund, may not succeed in its objective and may not be optimal in its construction, causing losses to a Fund. Securities in which the Fund invests will not be able to replicate exactly the performance of the index. Because the Fund seeks to track its designated index, the Fund may forego certain attractive investment opportunities available to an actively managed fund. In following the Fund’s designated index’s methodology, a Fund may hold fewer securities than other diversified funds. Accordingly, the Fund’s performance may be more sensitive to market changes than other diversified funds.

Definitions:

S&P 500 Index: The S&P 500 is a stock market index weighted by market capitalization that is made up of 500 of the largest public companies in the United States. DF Risk-Managed Tactical Top 30 Index: The DF Risk-Managed Tactical Top 30 Index employs trade signals based on exponential moving averages (EMAs) of the Syntax US MegaCap 100 Total Return Index (Ticker: SY100G) to tactically alternate the Index’s allocation between equities chosen for their price momentum, and ETFs comprising short-term US Treasuries. Momentum Investing: Momentum investing is a strategy of buying securities with recent strong performance and selling those with poor performance, based on the idea that trends will continue. This approach aims to profit from short-term price movements by "buying high and selling higher," and it relies on the belief that past performance can indicate future performance, though it's a strategy that acknowledges the risks of a potential market downturn or rapid trend reversal. Rotational Momentum: rotational momentum is a strategy that involves periodically rebalancing a portfolio to invest in the currently best-performing assets, asset classes, or sectors based on their recent price momentum (relative strength). The strategy gets its name from the act of "rotating" capital into the investments with the strongest positive momentum, while selling those that are underperforming or whose momentum is fading. Drawdown: drawdown is the decline in an investment's value from a peak to a subsequent trough before the value recovers. It represents the maximum loss an investment experienced over a specific period and is a key indicator of risk and volatility. Tactical overlay: Tactical overlay is a technique that uses trend following technical indicators to modify a portfolio’s risk and return characteristics. Upside Potential: Upside potential is the expected increase in an investment's value from its current price. It represents the potential for positive returns, and is a key factor in evaluating a stock, bond, or other asset. This potential is often calculated by comparing the current price to an analyst's price target, which reflects factors like the company's financial health, market trends, and future prospects. Trend Following Indicators: Trend following indicators are technical analysis tools used to identify the direction and strength of a market trend, with the goal of using that information to decide whether to buy or sell an asset. They help investors follow the momentum of a trend in the expectation that it will continue, rather than trying to predict the future price level.