TACK Portfolio Manager Commentary | October 2025

Core Insights - The Fairlead Tactical Sector ETF (TACK) employs a model-driven methodology focused on capital appreciation with limited drawdowns, utilizing technical analysis to identify long-term trends and major reversals [1][6] Performance Summary - TACK achieved a total return of 4.20% in September, outperforming the Russell 1000 Equal Weight Index (0.97%) and the SPDR S&P 500 ETF (3.56%) [2] - For Q3, TACK returned 6.68%, compared to 6.07% for the Russell 1000 Equal Weight Index, benefiting from exposure to outperforming ETFs like GLDM and XLK [4] - Year-to-date return for TACK in 2025 stands at 10.76%, ahead of the benchmark return of 9.31% [2] Sector Contributions - Key holdings contributing to TACK's outperformance include SPDR® Gold MiniShares Trust (GLDM), Technology Sector SPDR® (XLK), Communication Services Sector SPDR® (XLC), Utilities Sector SPDR® (XLU), and Consumer Discretionary Sector SPDR® (XLY) [3] - TACK's strategy involved removing exposure to underperforming sectors such as Consumer Staples (XLP), Energy (XLE), and Materials (XLB), which has positively impacted performance [4] Positioning and Strategy - As of Q3, TACK maintained a disciplined positioning with approximately 87.2% equity exposure, complemented by allocations to Treasuries and gold [5] - The model will continue to drive exposure into Q4, with no changes made for October as technical indicators remain positive for the same sectors held in September [6] Market Dynamics - The S&P 500 Index in 2025 is led by a concentrated group of megacap stocks, particularly in technology and communication services, which may impact major indices due to a recent loss of momentum [7] - Defensive sectors like utilities are expected to gain favor in a weaker market environment, while technology remains a focus for long-term investment [8] Risk Management - TACK's methodology mitigates single-cohort risk by anchoring decisions to sector trend momentum rather than market capitalization, refreshing sector exposure on a monthly basis [9][10]