A stock/bond ETF that targets a 10-year time horizon, helping to align assets with intermediate-term planning goals.
Overview
DDX is a Defined Duration™ ETF targeting a 10-year time horizon across its holdings using a systematic and time-weighted stock/bond asset allocation. DDX is designed to generate a balance of capital growth and preservation over 10-year periods to help align with corresponding financial planning needs.
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Time-horizon disciplineTargets a consistent profile and rebalances to stay aligned.
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Countercyclical rebalancingMaintains a fixed time horizon by counterbalancing market trends.
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Planner-friendlyDesigned to integrate into asset–liability matching and financial planning processes.
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Use CasesModerately long time horizon ALM and planning; replacing target date funds, 10-year and “balanced” instruments.
Fund Details
| Legal Name | The Defined Duration 10 ETF |
|---|---|
| Structure | ETF |
| Total Annual Expense | 0.29% |
| Expense Waiver | (0.04%)* |
| Total Net Expense | 0.25% |
| Goal | Balanced preservation of capital and growth |
| Rebalance | Time-weighted, algorithmic |
* The Fund’s investment adviser has contractually agreed to reduce its management fee from 0.25% to 0.21% of the Fund’s average daily net assets. This Agreement will remain in place until November 30, 2026, unless terminated sooner by the Trustees.
Portfolio Construction
DDX seeks to maintain a constant 10-year portfolio time horizon through a rules-based blend of assets using the Defined Duration method. The Fund holds 30–70% in high-quality U.S. bonds and 30–70% in global equities, rebalancing countercyclically to reduce interest-rate and equity-market skew.
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Allocation
- Fund of funds: Allocates across highly liquid, broadly diversified ETFs/funds for exposure to thousands of underlying global stocks and high quality US bonds.
- Stocks (30-70%): Holds a diversified global equity allocation.
- Bonds (30-70%): Holds high quality US investment grade bonds, typically US government bonds.
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Time-weighted rebalancingThe balance of stocks and bonds is time-weighted thereby helping to target a potentially more stable return over 10-year periods. This means reducing the relative stock versus bond weighting when stocks become higher valuation and higher potential risk instruments and vice versa, while also managing the underlying duration of bonds to avoid excessive bond duration skew over time.
DDX Hypothetical Liability Match
For illustration only. Not indicative of future results or exact allocations.
DDX Hypothetical Average Allocation
Hypothetical average allocation (55% high-quality bonds, 45% global equities). For illustration only. Not indicative of current or future allocations.
Why DDX vs Other 10 Year Funds?
Diversified Asset Liability Matching
Traditional asset-liability matching strategies are typically limited to bonds only. Because DDX is multi-asset it can potentially enhance ALM by building a 10-year target instrument with greater diversification and similar risk/return profiles to traditional 10-year instruments. This has the potential to improve performance while maintaining a temporal target.
Countercyclical Rebalancing
Most multi-asset stocks/bond funds are not actually balanced at all. For example, a 50/50 stocks/bond fund generates over 80% of its volatility from its equity sleeve, making it a relatively procyclical instrument. That is, its equity sleeve will drive most of the underlying risk in the portfolio because it has a procyclical structure. This means the fund can become inherently riskier during large stock market booms as it becomes a longer duration instruments thereby creating financial planning uncertainty. For example, when valuations surge (and expected future returns go down) in periods like 1999 or 2007 these funds can become riskier and create greater sequence of returns risk. By rebalancing in a countercyclical manner, DDX has the potential to throttle some of the excess stock market risk thereby creating better potential balance over the 10-year planning period.
Fixed Duration Target
Most multi-asset funds and 10 year instruments have floating markets caps and bond durations (interest rate sensitivity). DDX establishes a target 10-year defined duration and rebalances to this target. For example, a 50/50 stock/bond fund will typically allow its underlying stock allocation to skew as the market cap of its underlying equities changes. This means it can suffer from concentration risk or excessively high valuations in concentrated sectors. Furthermore, its bond component tends to have duration skew as it accumulates bonds based on issuance, rather than targeting risk. DDX counterbalances this by setting a fixed defined duration and rebalancing to it consistently, thereby reducing the impact of market cap skew in equities and duration drift in bonds.
Systematic & Efficient
Rules-based, tax-efficient structure with a net expense ratio of 0.25% and gross expense ratio of 0.29% (fee waiver of 0.04%) as of October 16, 2025.
FAQs
Why did DSCF change to DDX?
Exchange-traded funds (ETFs) are designed to provide access to diversified portfolios through a transparent and cost-effective structure. We continue to develop and expand our ETF offerings. While the underlying strategy in DSCF has not changed, the way we utilize it has been upgraded and more clearly defined inside of the Defined Duration methodology. In addition, we reduced fees from 0.39% to 0.25% (and gross expenses ratio from 0.43% to 0.29%) and refined algorithms to more closely maintain a 10-year defined duration (previously ~8–12 years).
What does “Defined Duration” mean in practice?
Defined Duration Investing aligns assets to planning horizons by estimating risk/return and sequence-of-returns characteristics (e.g., via cyclical adjusted p/e ratios for equities) and blending assets to match a time target. We created a quantifiable process by which we can assign the defined duration, or time horizon of reasonable expected real returns of certain assets.
Because equities are long duration instruments, typically ranging from 15-25 years in defined duration, they can be blended with bonds to create reasonable expectations of real returns and sequence of returns risk over time. We can then rebalance a portfolio based on how the defined duration changes over time thereby creating an asset allocation that can enhance the financial planning process by providing greater clarity over what is needed and when while potentially reducing sequence of returns risk across assets.
CAPE Ratio (Cyclically Adjusted Price-to-Earnings Ratio): A valuation metric that compares a stock index’s current price to its average inflation-adjusted earnings over the past 10 years to assess long-term market valuation.
Sharpe Ratio: A measure of risk-adjusted return that compares an investment’s excess return (over the risk-free rate) to its volatility, showing how much return is earned per unit of risk.
Is DDX a low-risk fund?
DDX targets a better balance between stability and growth over constant 10-year horizons. It bears market risk and can lose value, especially over short periods.
How does DDX fit within a broader plan?
DDX aligns to 7–15-year goals (e.g., retirement bridging, college funding, other intermediate planning needs).
What is countercyclical rebalancing?
As equities outgrow bonds, mixes drift procyclically (e.g., 50/50 to 60/40). DDX trims/adds to restore the intended horizon and risk balance. Likewise, if valuations and assets fall significantly, the defined duration of stocks and bonds should decline and a countercyclical rebalancing strategy will overbalance to maintain a target defined duration.
How do the stock and bond sleeves function?
DDX is really two strategies in one. The primary algorithm targets the relative stock/bond weight since stocks typically contribute significantly more volatility to a portfolio relative to bonds. When valuations are high and market risks appear elevated the algorithm will target a lower level of stocks vs bonds, within the 30-70% band. On average the stock allocation will reflect a globally diverisified stock allocation although its stock sleeve can also tilt to lower defined duration equities when valuations are extreme.
The secondary algorithm measures the riskiness of the bond sleeve. DDX targets a high quality bond allocation with a US only bond allocation. It focuses on high quality bonds because foreign bonds often perform like stocks during financial panics. Within this sleeve the algorithm assesses the riskiness of underlying interest rate risk and exposure to excessive duration skew. For instance, if interest rates are low and modified bond durations are high the fund will typically hold more short-term or intermediate bonds to reduce its potential interst rate risk and better align with a target 10 year defined duration.
How much does DDX cost? Is it tax efficient?
DDX has a net expense ratio 0.25% and gross expense ratio of 0.29% with a fee waiver of 0.04%. Its fund-of-funds structure enables internal rebalancing, which may help reduce realized capital gains compared to holding the same allocation through individual component funds.
However, investors may still realize taxable distributions, and individual tax outcomes depend on personal circumstances. DDX’s tax efficiency is not guaranteed and may vary depending on market conditions and fund activity.
IMPORTANT INFORMATION
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. Click here for the Fund's Prospectus, and here for the Fund's SAI. All fund documents can be found at https://disciplinefunds.com/documents/. A free hardcopy of any prospectus may be obtained by calling +1.215.882.9983. Read carefully before investing.
There is no assurance that the Funds will achieve their investment objectives. The Funds may underperform their benchmarks or fail to meet defined duration targets or positive returns.
New Fund Risk. The Funds are recently organized management investment companies with limited operating history. There can be no assurance that the Funds will grow to or maintain an economically viable size.
Equity Investing Risk. An investment in the Funds involve risks similar to those of investing in any fund holding equity securities, such as market fluctuations, changes in interest rates and perceived trends in stock prices. The values of equity securities could decline generally or could underperform other investments. In addition, securities may decline in value due to factors affecting a specific issuer, market or securities markets generally.
Foreign Investment Risk. Returns on investments in underlying ETFs that invest foreign securities could be more volatile than, or trail the returns on, ETFs that invest in U.S. securities. Investments in foreign securities involve political, economic, and currency risks, greater volatility and differences in accounting methods. These risks are magnified in emerging markets.
Frontier Markets Risk. Compared to foreign developed and emerging markets, investing in frontier markets may involve heightened volatility.
Emerging Markets Risk. DDX and DDXX may invest indirectly in companies organized in developing and emerging market nations. Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or investments in more developed international markets. Such conditions may impact the ability of the Funds to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Funds shares and cause the Funds to decline in value.
Bond and Fixed Income Risks. DDV and DDX will be subject to bond and fixed income risks when it invests in bond ETFs. Changes in interest rates generally will cause the value of fixed-income and bond instruments held by underlying bond ETFs to vary inversely to such changes.
Countercyclical Investing Style Risk. DDV and DDX are subject to the risk of periods of underperformance versus comparable passively-managed funds due to counter-cyclical investing. If the equity markets are rising and the economy is robust, the counter-cyclical style may cause the Funds to hold less equity securities, which may cause it to underperform for a period. In the event of a large equity market or macroeconomic decline (that is, the U.S. economy is performing poorly), the countercyclical rebalancing methodology may result in a higher equity allocation.
Quantitative Security Selection Risk. Data for some ETFs and for some of the companies in which the underlying ETFs invest may be less available and/or less current than data for companies in other markets due to various causes. The ETFs selected using a quantitative model could perform differently from the financial markets as a whole, as a result of the characteristics used in the analysis, the weight placed on each Characteristic, and changes in the characteristic's historical trends.
Fund of Funds Risk. Because the Funds invest primarily in other funds, the Funds' investment performance largely depends on the investment performance of the selected underlying exchange-traded funds (ETFs). An investment in the Funds is subject to the risks associated with the ETFs that then-currently comprise the Funds' portfolio.
Management Risk. The Funds are actively managed and may not meet their investment objective based on the Adviser's or Sub-Adviser's success or failure to implement investment strategies for the Funds.
Growth Investing Risk. DDXX invests in growth securities, which may be more volatile than other types of investments, may perform differently than the market as a whole and may underperform when compared to securities with different investment parameters. Under certain market conditions, growth securities have performed better during the later stages of economic recovery (although there is no guarantee that they will continue to do so). Therefore, growth securities may go in and out of favor over time.
Long Duration Investing Risk. DDXX seeks to invest in equity ETFs with a Defined Duration target of 20 years. Stocks with longer durations are more sensitive to changes in interest rates, which means that as interest rates rise, the present value of future cash flows decreases more significantly. This makes stocks with long durations riskier in a rising interest rate environment.
U.S. Government Securities Risk. DDV and DDX will invest in U.S. Treasury securities indirectly through U.S. Treasury bond ETFs. U.S. government securities are subject to market risk, interest rate risk and credit risk.
An investment in the Funds involves risk, including possible loss of principal. Exchange-traded funds (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 (NAV), and are not individually redeemable directly with the ETF. Brokerage commissions and ETF expenses will reduce returns. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the Fund, which should be considered carefully when making investment decisions. For a complete description of the Funds' principal investment risks, please refer to the prospectus.
Rebalancing and tax-efficient management strategies may not prevent losses in declining markets. Tax outcomes are not guaranteed, and investors may still receive taxable distributions. Results will vary depending on individual circumstances and market conditions. Investors should consult their own tax advisors regarding the tax consequences of an investment in the Funds.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. Past performance does not guarantee future results.
Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly.
Shares of the Funds are not FDIC Insured, may lose value, and have no bank guarantee.
This information provided here is for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.
Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. References to other funds should not be interpreted as an offer of these securities.
The Funds are distributed by PINE Distributors LLC. The Funds' investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. Orcam Financial Group, LLC (DBA Discipline Funds) serve as the Sub-advisers to the Funds. PINE Distributors LLC is not affiliated with ETF Architect or Orcam Financial Group, LLC (DBA Discipline Funds).Learn more about PINE Distributors LLC at FINRA's BrokerCheck.
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