(DFTT) uses advanced technical trading techniques to mitigate impact of market drawdowns
The DF Tactical 30 ETF 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 US 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 US 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 US 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.”
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