Before You Build, You Need a Foundation. Meet Dana's Limited Volatility ETF
In engineering and construction, it goes without saying: every structure needs a strong foundation. The idea translates well to portfolio management. Before taking on equity risk, credit risk, or any of the other exposures that drive long-term growth, investors need something they can genuinely count on — a core position that holds steady when markets do not.
We have been building that position for more than 40 years. At the end of 2025, we began to offer our Limited Volatility ETF (ticker: DANA), the original investment strategy on which Dana was built. The result is a U.S. government-based fixed income strategy that is now accessible to a far broader range of investors and financial advisors than ever before.
What Is a Limited Volatility Bond Strategy?
A limited volatility bond strategy is designed to do one job extremely well: preserve principal, generate reliable income, and do both in a conservative, predictable manner — regardless of what interest rates, equity markets, or the broader economy are doing at any given moment.
That sounds simple. Executing it consistently through rising and falling rate cycles, financial crises, and everything in between is anything but.
Dana's Limited Volatility Bond Strategy holds U.S. government securities exclusively — Treasuries and agencies — keeping credit risk at or near zero. Duration is kept conservative, and the portfolio is managed to deliver a steady yield while seeking to protect the capital invested. Matt Slowinski, who has managed the strategy since 2010 after being mentored by the senior fixed income professionals who built it, puts it plainly.
"Our Limited Volatility Bond Strategy is designed to be an anchor in a client’s portfolio," he says. "It gives them the confidence to take risks elsewhere knowing this piece is going to do what they need it to do when markets get difficult."
A Strategy That Goes Back to the Beginning
Since launching as a separately managed account in 1980, the Limited Volatility Bond Strategy's core principles have remained intact even as markets, interest rate regimes, and available security structures have shifted around them.
That history matters deeply to us. The strategy has navigated every meaningful fixed-income environment. Its longevity is not a coincidence. It is the result of a consistent investment philosophy, passed from one generation of Dana portfolio managers to the next, and a disciplined refusal to stray from what the strategy does best.
Our Edge
At first glance, an ultra-short U.S. government-only fixed income strategy might seem straightforward. There is considerably more depth to how it is managed than the asset class description suggests, and that depth is where the strategy's consistency originates.
"That's really where the secret sauce comes in," Matt explains. "There are different structures to U.S. government securities. Understanding those structures — how they behave in different rate environments, how they contribute to portfolio yield — is where our expertise comes into play."
U.S. government bonds come in many different flavors. Some carry adjustable or floating rate coupons. Some pay principal and interest monthly. Others pay quarterly or semi-annually. Agency mortgage-backed securities have different cash flow characteristics than Treasury bonds. Each of those structural differences shapes how a security performs as interest rates move and modeling that behavior across an entire portfolio is the core of what Dana's team does.
This active understanding of structure is what separates Dana’s Limited Volatility ETF from a passive index approach. A one-year Treasury index must own the one-year Treasury, regardless of whether it represents the best value for the client in a given environment. Our actively managed approach gives the team the flexibility to evaluate which government securities offer the best combination of yield, duration, and structure at any given time.
"We are not pigeonholed into one type of security or one duration target," Matt says. "We can own Treasury bonds, adjustable rate agencies, pool agencies — whichever offers the better value in the current environment. That flexibility is what allows us to navigate different market conditions."
The result is a fund that cannot be neatly categorized by a single style box, and that is intentional. As Matt tells clients, it will always be ultra short, and it will always be government securities. But the mix within that universe will reflect where the team sees the best opportunity, because the market is always presenting different answers to that question.
Why Now
The current interest rate environment is presenting a challenge for investors: the income they have counted on over the past several years is beginning to erode.
For much of the recent rate cycle, clients grew accustomed to earning 4% or better on money market funds and short-duration fixed income. As the Federal Reserve has eased policy — and market expectations point toward further reductions — money market yields have drifted into the low 3% range for most clients. If that trend continues, the passive cash-like income many investors have relied on will keep declining.
"Clients are asking how they protect the income stream they have been used to," Matt says. "They do not want to give up the yield they have had for the last several years, but they also do not want to take on a lot of risk to keep it. That is exactly the conversation where our Limited Volatility ETF offers a real answer."
The fund seeks to deliver steady income with the same high-quality, government-only, conservative portfolio structure the strategy has maintained since its founding. For investors who seek to protect their income without taking on additional credit or equity risk, the timing could not be better.
Until recently, access to this strategy was available only through separately managed accounts, a structure that placed it beyond the reach of many advisors and the clients they serve. The ETF changes that.
Access Without Compromise
In our earliest conversations about broadening access to the Limited Volatility Bond Strategy, we agreed that any new investment vehicle had to allow it to be executed exactly as it has always been. The ETF structure met that standard—and then some.
"Clients who have been with us for decades know what they are getting," Matt says. "Clients coming into the ETF should know that, too. The process does not change based on the vehicle."
For financial advisors, the structure brings several meaningful advantages. The lower investment minimums inherent to ETFs make the strategy accessible across a much broader range of client accounts, including those that would not meet the thresholds typically associated with separately managed accounts. The ETF's structural tax efficiency is meaningful for clients in taxable accounts, where the in-kind creation and redemption mechanism tends to minimize capital gains distributions. Daily liquidity and intraday tradability give advisors flexibility in how they implement and adjust allocations. And regular holdings transparency makes it easier to explain the portfolio clearly to clients and investment committees.
"Whether we have $10 million in the ETF or a billion dollars in the SMA, the process does not change," Matt says. "We are managing the portfolio the same way we always have."
The Foundation Your Portfolio Needs
Every well-constructed portfolio benefits from a position that investors can truly count on — one that will not surprise them, that will be there when it is needed most, and that performs its job steadily regardless of what the broader market is doing. For more than four decades, Dana's Limited Volatility Bond Strategy has been that position for institutional and high-net-worth clients who valued predictability as much as return.
The launch of the Limited Volatility ETF does not change the strategy. It simply makes it available to more people.
For investors facing declining money market yields seeking to preserve their income without adding risk, for advisors building conservative-to-moderate allocations that need a dependable core holding, and for clients who value a portfolio manager with a genuine and long-running track record, the Dana Limited Volatility ETF is an option worth knowing about.
Contact Dana Investment Advisors to learn more about how the Limited Volatility ETF could serve as the foundation of your fixed income allocation.
Frequently Asked Questions (FAQ)
Q: What is the Dana Limited Volatility ETF? The Dana Limited Volatility ETF (ticker: DANA) is an actively managed fixed income ETF built on Dana Investment Advisors' Limited Volatility Bond Strategy — the foundational strategy on which the firm was built. The ETF invests exclusively in U.S. government securities, maintaining an ultra-short duration and a focus on principal preservation, reliable income, and capital stability.
Q: What types of securities does the Limited Volatility ETF hold? The portfolio holds U.S. government securities, including Treasury bonds, adjustable and floating rate agency securities, and pool (mortgage-backed) agencies. The strategy maintains an ultra-short duration profile and carries very little to no credit risk. While the mix of security types within the government universe may shift based on relative value, the portfolio will always be ultra short and always government-only.
Q: How does active management improve on a passive government bond index? A passive government bond index must hold specific securities in fixed proportions, regardless of relative value or market conditions. Dana's active approach allows the portfolio management team to evaluate the structural characteristics of different government securities — including coupon structure, payment frequency, and duration — and allocate toward those offering the best combination of yield and risk management at any given time. This flexibility has been a key driver of the strategy's consistent performance across market cycles.
Q: How long has the Limited Volatility Bond Strategy been in existence? The strategy has been managed continuously since Dana Investment Advisors was founded in 1980, making it one of the longest-running fixed income strategies of its kind. The ETF launched in December 2025. The SMA track record is GIPS compliant back to the mid-1990s and reflects outperformance across essentially every time horizon.
Q: Why is this strategy particularly relevant in the current interest rate environment? As the Federal Reserve eases monetary policy, money market yields are declining. Clients accustomed to earning steady income on cash-like holdings are beginning to see that income erode. The Limited Volatility ETF seeks to deliver consistent yield through the same high-quality, government-only, conservative portfolio structure the strategy has maintained since its founding, offering a meaningful way to protect income without reaching for additional credit or equity risk.
Q: Who manages the Limited Volatility ETF? The ETF is managed by Matt Slowinski, who joined Dana in 2008, was mentored by the senior fixed income professionals who built the strategy and has managed it since 2010. Matt holds his CFA designation and MBA and reflects the firm's longstanding commitment to developing investment talent from within.
Q: How is the ETF constructed? How many positions does it hold? The fund currently holds well over 20 positions, with individual position targets of 3% to 5% of the portfolio — the same disciplined construction approach used in the SMA version of the strategy. Continuity of process is maintained regardless of the investment vehicle or the size of the fund.
Q: What role does the Limited Volatility ETF play in a broader portfolio? The strategy is designed to serve as the anchor of a diversified portfolio. It seeks to provide principal preservation and consistent yield and pairs naturally with Dana's equity strategies.
Q: How does the ETF compare to the SMA version of the strategy? The investment process and portfolio construction are identical. The ETF structure adds broader accessibility through lower investment minimums, structural tax efficiency through in-kind creation and redemption, intraday liquidity, and regular holdings transparency. Whether clients access the strategy through an SMA or the ETF, they are getting the same approach Dana has delivered for more than four decades.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (866) 991-5811 or visit our website at www.danaetfs.com. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk. Principal loss is possible.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Fixed Income Risk. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. Low Volatility Investing Risks. The Fund invests in bonds selected for their historically low volatility, but there is no guarantee these securities will maintain stable performance or meet return objectives. Variable and Floating Rate Bonds Risk. Variable and floating rate bonds are subject to credit risk, market risk and interest rate risk. In addition, the absence of an active market for these securities could make it difficult for the Fund to dispose of them if the issuer defaults.
Low Volatility Investing Risks. The Fund invests in bonds selected for their historically low volatility, but there is no guarantee these securities will maintain stable performance or meet return objectives.
Variable and Floating Rate Bonds Risk. Variable and floating rate bonds are subject to credit risk, market risk and interest rate risk. In addition, the absence of an active market for these securities could make it difficult for the Fund to dispose of them if the issuer defaults.
Definitions:
Duration is a measure of a bond’s price sensitivity to changes in interest rates, expressed in years. Generally, the longer the duration, the more sensitive the bond is to interest rate moves.
Coupon refers to the annual interest paid on a bond, based on its face (par) value.
Cash Flow refers to the net amount of money being transferred into and out of an investment. Generally, cash flows come from interest payments and return of principal (par value) at maturity.
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