The ROPE ETF from Coastal Equity Management Aims to Tie Growth, Dividends and Protection Together

How Does the ROPE ETF Work?

The ROPE ETF employs a smart, trend-following strategy to focus on U.S. stocks, emphasizing quality companies with attractive dividends.

Here's how it operates: the fund begins with the 100 largest U.S. stocks by market capitalization and filters them down to 25-50 companies based on positive momentum, strong financial health, and reasonable valuations. Among these, the 10-20 companies with the highest dividend yields make up about 40% of the portfolio, while the remainder is equally weighted.

What makes this ETF unique is its built-in downside protection. Using a proprietary stop-level model, the fund can pivot up to 100% into cash or cash equivalents, such as Treasury ETFs, during market downturns.

This approach allows it to step out of riskier markets and wait for favorable conditions to reinvest. Essentially, it aims to capture growth during strong markets while safeguarding your investments in turbulent times.

ROPE has an expense ratio of 0.80%.

Why Choose the ROPE ETF?

The Coastal Compass 100 ETF aims to align with key priorities most investors have when building a portfolio. It seeks to provide diversification, attractive dividend yields, and exposure to the U.S. equity landscape.

Additionally, its advanced risk management strategy systematically shifts to cash during market declines and reinvests during recoveries, offering a thoughtful balance of growth potential and downside protection.

About Coastal Equity Management

Coastal Equity Management was established by Scott McCaghren and Bruce Marshall, leveraging over 50 years of combined experience in wealth management. Recognizing the need for a more effective approach to growing wealth while managing risk, they founded the firm to deliver innovative investment solutions. Coastal Equity Management takes a risk-oriented approach to enhance long-term returns. Each product incorporates a proprietary risk-overlay component, designed to achieve market-based performance while maintaining robust risk controls.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.