As the Coastal Compass 100 ETF (ROPE) reaches its first anniversary, the milestone signifies its ongoing effort to align its investment strategy with a clear mission. ROPE’s initial phase highlights how deliberate design and disciplined management can support an approach that balances market participation with risk awareness.
As an actively managed exchange-traded vehicle that focuses on large, well-established companies, ROPE seeks to blend exposure to durable businesses with a layer of risk management that responds to changing market conditions. Rather than promising a single solution, it aims to offer a considered complement to an investor’s broader plan. “We want to give investors a way to stay invested in growth, but with a built-in system that helps dial back risk when markets start to shift,” Scott McCaghren, who helps guide ROPE’s discretionary management, says.
The strategy centers on selecting companies with a consistent history of delivering shareholder value and financial resilience. ROPE utilizes a trend-informed framework to adjust its portfolio, aiming to preserve capital during less favorable market conditions. This involves narrowing a broad universe to a curated set of firms that meet quality and income-oriented criteria, with particular emphasis on durable dividend profiles. Yield considerations are balanced with momentum signals to guide allocation decisions and support a disciplined, adaptive approach.
“We designed it to be simple,” McCaghren explains. “Investors hold a single security that provides exposure to a broad mix of large companies, with an automatic system that adjusts to help manage risk, minimizing the need for guesswork.” That simplicity was intentional. ROPE was built with a clear audience in mind, appealing to both long-term savers and those approaching retirement.
For someone new to investing, that combination can be comforting, owning familiar companies alongside a mechanical system intended to help manage the emotional impact of market fluctuations. For more experienced investors, ROPE can serve as a tactical component, adding a measured, rules-based layer to a broader portfolio. When the model indicates, ROPE can shift toward more liquid, lower-volatility instruments, reflecting a preference for capital preservation during periods the ROPE team interprets as challenging.
Retirement planning also plays a key role in how the ROPE team frames the ETF’s purpose. The product was designed with the shift from active income to drawing down savings in mind, emphasizing the importance of maintaining purchasing power and financial confidence. ROPE aims to ease the emotional strain that can accompany market volatility by offering steadier exposure to growth and a disciplined approach to managing downside risk.
Its methodology aligns with preferences for caution and consistency, serving as a complementary tool within a retiree’s broader allocation strategy. This combination of selective equity ownership and adaptive exposure management may appeal to investors seeking both participation and protection.
“We’re building a process that aims to reduce emotional decision-making by providing clarity,” says McCaghren. “The ultimate goal is to give investors a space in their portfolio focused on preserving core assets, so they can confidently pursue what’s ahead.”
As the Coastal Compass 100 ETF moves beyond its first year, the team is focused on continuing to communicate its philosophy: mitigate risk thoughtfully and allow the potential for returns to emerge from that foundation. The past year has served as an early opportunity to put the approach into practice and to share what the strategy is designed to do for everyday investors, especially those approaching retirement. In the long term, the team intends to keep refining how they present the product and sustain a measured path that places investor comfort and clarity near the center of their work.
Portfolio Managers: Scott McCaghren and Bruce Marshall
Important Information
Investments involve risk. Principal loss is possible. Redemptions are limited, and often commissions are charged on each trade. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. Click here for the ROPE Prospectus and Summary Prospectus. A free hardcopy of any prospectus may be obtained by calling +1.215.882.9983. Read carefully before investing.
Large-capitalization companies risk: Large-capitalization companies may trail the returns of the overall stock market. Large-capitalization stocks tend to go through cycles of doing better or worse than the stock market in general.
Non-diversification risk: Because the Fund is non-diversified, it may be more sensitive to economic, business, political, or other changes affecting individual issuers or investments than a diversified fund, which may result in greater fluctuation in the value of the Shares and greater risk of loss.
High dividend style risk: While the Fund may hold securities of companies that have historically paid a high dividend yield or the sub-adviser determines appear likely to pay a high dividend in the future, those companies may reduce or discontinue their dividends, thus reducing the yield of the Fund. Low-priced securities in the Fund may be more susceptible to these risks.
New fund risk: The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision.
The Securities and Exchange Commission (SEC) does not approve or disapprove of any investment. This material has been distributed 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 Fund is distributed by PINE Distributors LLC. The Fund’s investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. Coastal Equity Management, LLC serves as the Sub-adviser to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or Coastal Equity Management, LLC.
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About Coastal Compass Funds
The Coastal Compass 100 ETF (ROPE) is an actively managed exchange-traded fund designed to offer investors equity exposure alongside a systematic approach to risk management. Focused on large, well-established companies, ROPE combines quality and income-oriented stock selection with a trend-informed framework that adapts to changing market conditions. Built with long-term savers and retirement-minded investors in mind, the ETF emphasizes disciplined portfolio adjustments aimed at preserving capital while maintaining participation in market growth. To learn more, visit coastalcompassfunds.com.
Media Contact
Scott McCaghren
scott@safeharborfiduciary.com
