How Resilient Are Your Portfolios to Trade Wars?
By Charlie Tian
With tariffs and trade tensions once again in the headlines, investors are asking one key question: How Resilient Are Your Portfolios to Trade Wars? Can your portfolios withstand higher import costs and global supply chain disruptions?
The answer lies in business quality and resilience — and that’s where we believe the GFGF ETF stands apart.
Why we believe GFGF ETF Holdings Are Better Positioned
Companies within the GFGF ETF have often had stronger fundamentals, higher profitability, and more pricing flexibility than the average S&P 500 company. Those advantages have typically translated into greater tariff resilience — the ability to protect margins and earnings even when costs rise.
Here’s what sets them apart:
- Pricing Power
- Diversified Supply Chains
- Operational Efficiency
- Financial Strength
When trade barriers rise, many companies see their margins compress — but historically GFGF’s holdings tend to adapt, reprice, and attempt to sustain performance. Of course, past performance is not a guarantee of future results.
This resilience was clearly demonstrated during the onset of the trade war earlier this year. Between the market peak on February 21, 2025, and the bottom on April 8, 2025, a span of just a month and a half, the S&P 500 fell by more than 5%, while the GFGF ETF held up significantly better. The performance comparison is illustrated in the chart below.
Chart 1: Guru Favorite Stocks (GFGF) has lower draw down during the recent trade war
Data: GuruFocus.com. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar. Dates: 2025-02-21 to 2025-04-15.
Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times. For current month end and standardized performance of the Fund, visit GFGF ETF website or call 972.379.7896.
The referenced index is shown for general market comparisons, has the benefit of hindsight, and are not meant to represent the Fund. Investors cannot directly invest in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges.
GFGF ETF vs. the S&P 500: Focus on Stronger Defenses in a Trade-Heavy World
Analysis shows that GFGF ETF holdings, on average, have maintained higher profitability and lower margin sensitivity to tariffs than companies in the S&P 500. The tariff resilience as measured by Tariff Resilience Score is much higher, as shown in the table below.
Table 1: Guru Favorite Stocks (GFGF) Quality Measures
| GFGF | S&P 500 | |
|---|---|---|
| Operating Margin¹ % | 32.7 | 17.5 |
| Return On Equity² % | 33.3 | 15.1 |
| Return On Investment Capital³ % | 20.2 | 7.7 |
| 3-Year Revenue Growth Rate (Per Share) % | 13.8 | 6.8 |
| Moat Score | 8.2 | 6.7 |
| Tariff Resilience Score | 7.9 | 7.1 |
Date: 10/21/2025. Source: GuruFocus.com. Moat Score is a ranking system developed by GuruFocus to assess a company’s ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Tariff Resilience Score is a ranking system developed by GuruFocus to measure a company’s exposure to international trade tariffs, rated on a scale from 0 to 10. It takes into account key factors such as global supply chain dependencies, manufacturing locations versus sales markets, import / export balance and percentage of revenue, and more. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar.
In today’s uncertain trade environment, tariff resilience has become a critical marker of business strength. The GFGF ETF is designed to give financial advisors and investors exposure to companies that seek to protect profits and remain competitive, no matter how global trade policies evolve.
Important Information
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Prospectus and Summary Prospectus contains this and other important information about the investment company, and it may be obtained by calling 215-330-4476 or visiting www.GuruFocusETF.com/gfgf/. Read it carefully before investing.
Investments involve risk. Principal loss is possible. The Fund is actively managed and may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for the Fund.
For a glossary of terms, click here: https://gurufocusetf.com/glossary/.
ETFs may trade at a premium or discount to their net asset value. Redemptions are limited and often brokerage commissions are charged on each trade which may reduce returns.
The Sub‐Adviser considers a Guru to be a prominent long‐term investor and must have a long‐term, publicly available, track record of at least ten years. In addition, the Guru must follow an investment strategy of investing in companies that the Guru considers to be high‐quality. Securities recommended for the Fund is based on publicly available information, however, it may not always reflect real‐time portfolio holdings. As a result, the Fund may purchase or retain securities that are no longer favored by the Gurus, which may hurt the Fund’s performance.
The Fund may be subject to quantitative security selection risk. Data for some companies may be less available or current and could perform differently from the financial markets as a whole. Because the Fund’ portfolio is reconstituted on a semi‐annual basis, the Fund’ market exposure may be affected by significant market movements following a reconstitution or may lag a significant change in the market’s direction. Such lags between market performance and changes to the Fund’s exposure may result in significant underperformance relative to the market.
The fund may invest in medium‐capitalization companies which may be subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitivity to adverse market conditions.
For a complete description of the Fund’s principal investment risks, please refer to the prospectus.
The information provided here is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Investments in securities entail risk and are not suitable for all investors. Nothing herein constitutes or should be construed as an offering of securities or a recommendation to purchase or sell securities. Please refer to the disclosure and offering documents for further information concerning specific products or services. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
All expressions of opinion are subject to change without notice in reaction to market conditions. Data contained here from third-party providers are considered reliable sources. However, its accuracy, completeness or reliability are not guaranteed.
The Fund is distributed by PINE Distributors LLC. The Fund’s investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. GuruFocus Investments, LLC serves as the Sub-adviser to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or GuruFocus Investments, LLC. Learn more about PINE Distributors LLC at FINRA’s BrokerCheck.
ETFAC- 4969753-11/25