WEBs Defined Volatility℠ Sector ETFs Celebrate One Year of Helping Investors Navigate Volatile Markets
Rhea-AI Summary
WEBs Investments marks the first anniversary of its 11‑fund Defined Volatility℠ Sector ETF suite, launched on July 23, 2025 to provide rules‑based volatility management across S&P 500 sectors. The strategy adjusts equity exposure up when realized volatility is below target and shifts toward U.S. Treasuries and cash equivalents when volatility exceeds that threshold, seeking capital preservation without forcing sales.
According to WEBs Investments, the ETFs delivered positive returns in 8 of 11 sectors since inception, led by Technology, Energy, Industrials and Health Care. One‑year NAV returns to 7/22/26 range from -11.13% (XLY) to 60.91% (XLE), with gross expense ratios of 0.89% for all funds and creation baskets of 5,000 shares to support liquidity. WEBs highlights that the funds are passively managed, non‑diversified ETFs whose performance depends largely on their underlying sector ETFs, and emphasizes standard ETF and market risks, including potential loss of principal and no assurance of achieving investment objectives.
Positive
- 8 of 11 sector ETFs delivered positive returns since inception on 7/23/25
- Technology sector ETF (DVXK) 1‑year NAV return of 51.10% as of 7/22/26
- Energy sector ETF (DVXE) 1‑year NAV return of 60.91% as of 7/22/26
- Health Care sector ETF (DVXV) 1‑year NAV return of 28.31% as of 7/22/26
- Industrials sector ETF (DVIN) 1‑year NAV return of 20.34% as of 7/22/26
- All 11 ETFs show a consistent gross expense ratio of 0.89%
- Creation basket size of 5,000 shares aims to support ETF liquidity
Negative
- Communication Services ETF (DVXC) 1‑year NAV return of -5.56% as of 7/22/26
- Consumer Discretionary ETF (DVXY) 1‑year NAV return of -11.13% as of 7/22/26
- Real Estate ETF (DVRE) since‑inception NAV return of -1.53% as of 6/30/26
- Funds are newly formed with limited operating history, adding uncertainty
- Each fund is classified as non‑diversified, increasing issuer concentration risk
- Fund performance largely depends on the associated underlying sector ETF
- Rebalancing errors or inability to rebalance could misalign exposure with objectives
News Market Reaction – WHG
In the Jul 27 session, WHG gained 2.13%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 22 | Earnings call notice | Neutral | -0.2% | Second-quarter earnings release and conference call scheduled for August 6, 2026 |
| Jul 08 | Fund distributions | Positive | -4.6% | Monthly distributions announced for MDST, WEEI, and YLDW funds |
| Jun 03 | Fund distributions | Positive | -0.7% | June monthly distributions announced for three Westwood income funds |
| May 06 | Fund distributions | Positive | -1.3% | Monthly distributions announced alongside return-of-capital disclosure |
| Apr 30 | Quarterly earnings report | Positive | -2.7% | First-quarter revenue, earnings, assets, cash, and debt results reported |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
WHG's recent distribution, conference, and earnings announcements were followed by negative 24-hour reactions, indicating repeated divergence from the announcements' generally neutral or positive framing.
Key Terms
creation basket financial
realized market volatility technical
non-diversified financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
The 11-fund suite delivered systematic volatility management across S&P 500 sectors during turbulent market conditions
PARK CITY, Utah, July 27, 2026 (GLOBE NEWSWIRE) -- One year ago, WEBs Investments launched its Defined Volatility℠ Sector ETF suite into a market environment that would quickly test its core premise. Over the past 12 months, investors navigated sharp volatility spikes, rapid sector rotations, and the kind of whipsaw conditions that can challenge traditional buy-and-hold sectors. The WEBs Defined Volatility℠ Sector ETFs were built for exactly that environment: seeking to reduce portfolio risk when markets deteriorate and to increase equity exposure when markets stabilize.
Launched on July 23, 2025, the 11 Defined Volatility℠ Sector ETFs expanded the firm's Defined Volatility℠ ETF lineup beyond broad market exposure, joining the flagship WEBs Defined Volatility℠ SPY ETF (Nasdaq: DVSP) and WEBs Defined Volatility℠ QQQ ETF (Nasdaq: DVQQ). For advisors seeking sector exposure with built-in risk management, the Defined Volatility℠ funds offer a rules-based alternative to traditional sector ETFs, one designed to adjust equity exposure systematically as market conditions evolve.
"The past year reminded investors why volatility management matters and why timing the market manually is so difficult," said Ben Fulton, CEO of WEBs ETFs. "What we've learned in our first year is that advisors are drawn to the systematic nature of the approach. They don't have to make a judgment call about when to dial up or pull back risk. The methodology does it for them, rules-based and transparently. As market volatility becomes a more permanent feature of the landscape, we believe dynamic risk management is only going to become more important for advisors building portfolios for clients who can't afford to sit through the full brunt of a drawdown.”
Each fund employs a transparent, systematic methodology that dynamically adjusts equity exposure based on realized market volatility. When volatility falls below a target level, the strategy increases exposure to the underlying sector ETF. When volatility rises above that threshold, exposure is reduced and assets shift to U.S. Treasuries and cash equivalents, seeking to preserve capital without requiring an investor to sell their position or realize a gain. When conditions normalize, the strategy moves back in, again systematically and without triggering a taxable event. The result is a portfolio tool designed to help investors stay invested in sectors they want exposure to, with a built-in shock absorber for periods of elevated volatility.
Liquidity is a foundational feature of the Defined Volatility℠ Sector ETF suite. With a creation basket size of 5,000 shares and each fund linked to some of the most actively traded sector ETFs in the market, advisors and their clients can access and exit positions efficiently, even during periods of elevated market stress. The funds' direct linkage to high-volume, well-established sector ETFs provides meaningful transparency into how the strategy trades in practice.
Despite significant market volatility and sharp sector rotations during the past year, the Defined Volatility Sector ETFs delivered positive returns in 8 of 11 sectors since inception on July 23, 2025, led by Technology, Energy, Industrials and Health Care.
| Fund | Gross Expense Ratio | 1-Year (NAV) As of 7/22/26 | Since Inception (NAV) As of 6/30/26 | Since Inception (Market Price) As of 6/30/26 | ||||
| WEBs Defined Volatility XLB ETF (Nasdaq: DVXB) | ||||||||
| WEBs Defined Volatility XLC ETF (Nasdaq: DVXC) | - | - | - | |||||
| WEBs Defined Volatility XLE ETF (Nasdaq: DVXE) | ||||||||
| WEBs Defined Volatility XLF ETF (Nasdaq: DVXF) | - | |||||||
| WEBs Defined Volatility XLK ETF (Nasdaq: DVXK) | ||||||||
| WEBs Defined Volatility XLI ETF (Nasdaq: DVIN) | ||||||||
| WEBs Defined Volatility XLRE ETF (Nasdaq: DVRE) | - | - | ||||||
| WEBs Defined Volatility XLU ETF (Nasdaq: DVUT) | ||||||||
| WEBs Defined Volatility XLY ETF (Nasdaq: DVXY) | - | - | - | |||||
| WEBs Defined Volatility XLP ETF (Nasdaq: DVXP) | ||||||||
| WEBs Defined Volatility XLV ETF (Nasdaq: DVXV) | ||||||||
Performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end and standardized performance, please call 844.455.9327 or visit websinv.com.
WEBs’ focus going forward is deepening advisor education and continuing to demonstrate how these funds work across a full market cycle. Visit the WEBs Learning Hub for more.
About WEBs Investments Inc.
WEBs Investments Inc. ("Westwood Engineered Beta") is an investment adviser registered with the U.S. Securities and Exchange Commission, dedicated to developing innovative strategies that democratize access to institutional-caliber investment solutions. WEBs was founded in 2024 by ETF industry veterans Ben Fulton, Keith Cunningham, Kevin Rich and Tony Trevisan.
The Funds are distributed by Foreside Fund Services, LLC, which is not affiliated with WEBs Investments Inc., Westwood Holdings Group, Inc., U.S. Bank, or any of their affiliates.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing.
To determine if this fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectus or summary prospectus which may be obtained by downloading at websinv.com or calling 844.455.9327. Please read the prospectus or summary prospectus carefully before investing.
The Funds are newly formed and have limited operating history. The Funds are passively managed ETFs listed for trading on the Exchange. Each Fund implements its investment objective by investing, under normal market conditions, at least
The Market Price and NAV may differ. Market Price represents the current price at which shares are bought and sold on the exchange. Market Performance is based on the last trade price or closing price for each trade date. NAV represents the dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. NAV Performance is calculated using the NAV at the end of each business day.
WEBs Media Inquiries:
For WEBs Investments Inc. Gregory
webs@gregoryagency.com
