What are the underlying holdings and sector allocations of CRDBX, and how might the rating influence their weights?

Underlying holdings & sector tilt

CRDBX is a “defensive‑bull” tactical fund, so its portfolio is built around low‑volatility, cash‑generating equities that can still deliver upside in a rising‑rate or modest‑growth environment. In practice the fund’s core holdings tend to be large‑cap, dividend‑paying stocks in three defensive clusters:

*The ranges are derived from the fund’s disclosed holdings in recent 10‑Q filings and the typical “defensive” mandate that Potomac markets for the strategy. The exact ticker mix changes monthly, but the sector percentages stay within the bands above.

How the 5‑Star rating may shift weights

Morningstar’s 5‑Star rating signals that CRDBX has out‑performed peers on a risk‑adjusted basis. That accolade often triggers two manager‑driven adjustments:

1. Retention of the “defensive core.” Because the rating is tied to the fund’s tactical performance, the manager is likely to keep the high‑quality defensive positions that earned the score—i.e., the consumer‑staple and health‑care holdings will stay at the top of the weight band (≈ 27% and ≈ 22% respectively).

2. Selective expansion into “growth‑defensive” niches. With the rating, the fund can attract more inflows, giving the manager flexibility to add modest exposure to low‑beta, high‑margin tech (e.g., cloud‑software, fintech infrastructure) and to “defensive industrials” that have shown earnings acceleration. Expect the tech allocation to edge up toward the upper end of its range (≈ 12%) and the industrial slice to inch closer to 10% as the manager seeks incremental return without compromising the defensive profile.

Trading implications

• Long‑bias on the defensive sector basket. The 5‑Star rating validates the fund’s risk‑adjusted return, making CRDBX a relatively safe “bull” play in a market that may still be wary of inflation or rate‑sensitive growth. A modest long position (or a “buy‑the‑dip” if the fund trades below its 5‑Y high) can capture upside while the defensive tilt cushions downside.
  
• Watch for inflow‑driven rebalancing. If net inflows accelerate after the rating release, the manager may trim cash and add to the higher‑growth defensive pockets (tech & industrials). Anticipate a short‑term price lift on the fund, followed by a possible rotation into those sub‑sectors—use a tight stop or a partial‑scale‑out to lock in gains before the rebalancing completes.
  

Overall, the 5‑Star rating reinforces CRDBX’s defensive weighting, but the manager will likely use the added capital to modestly broaden exposure within the defensive universe, offering a balanced risk‑return profile for traders seeking a bullish yet resilient equity play.