DYNF vs SECT

DYNFAiShares U.S. Equity Factor Rotation Active ETF

SECTCMain Sector Rotation ETF

In short

DYNF Most factor funds make you pick a lane: value, momentum, quality. DYNF rotates across five styles instead, letting a factor model decide which one leads, and charges an index-fund-ish 0.26% to do it.

SECT Rather than picking stocks, SECT rents whole sectors through sector ETFs, tilting toward the ones its managers judge undervalued. The stated aim: outperform the S&P 500 in rising markets while limiting losses when markets decline.

Stated mandate

DYNF The Fund seeks to outperform the U.S. equity market through diversified, tactical exposure to style factors using a factor rotation model.

SECT The Fund seeks to outperform the S&P 500 during rising markets while limiting losses when markets decline.

Why people hold it

• DYNF Five style factors in one ticket (value, quality, momentum, growth, low volatility), reweighted by a rotation model rather than locked to a single tilt.
• 0.26% is well under half the median fee in its active US equity peer group, which is unusual pricing for a strategy with a human-supervised model behind it.
• A multi-billion-dollar fund and one of the more actively traded names in its category, so getting in and out rarely becomes the hard part. Pays quarterly.
• Running since 2019 under one of the biggest ETF shops, and it stands among the strongest overall implementations in the active US equity group we track.

• SECT One of the longer-running active sector-rotation ETFs, trading since 2017, with a record that spans the 2020 crash and the 2022 bear market.sec.gov
• 0.69% net of a waiver through March 31, 2027 (0.73% gross), and that cap covers the underlying sector ETFs' fees too, so fund-of-funds costs don't quietly stack on top.sec.gov
• A multi-billion-dollar fund that trades at moderate volume, so entering and exiting is rarely the hard part for retail-size orders. Pays quarterly.

Worth knowing

• DYNF The yardstick isn't the S&P 500: it's a custom blend of 80% MSCI USA and 20% MSCI USA Minimum Volatility, so a low-vol tilt is baked into the benchmark itself.
• Active by design. The factor mix shifts, the book runs to a couple hundred stocks, and a rotation call can leave it out of step with a plain US market index fund.
• Cheap for active, not the cheapest shelf: systematic peers DFAU (0.12%), AVLC (0.15%), DFAC (0.17%) and FELC (0.18%) all undercut it on fee.

• SECT The fee sits near the typical active US equity fund, but well above index-style peers in the group such as DFAU (0.12%) and AVLC (0.15%).
• Results ride on a short list of sector calls, so the portfolio can look very different from the S&P 500 in either direction.sec.gov
• The prospectus notes higher portfolio turnover can mean higher transaction costs and bigger tax bills for shares held in a taxable account.sec.gov

Full DYNF profile⁠

Full SECT profile⁠