Global Tactical Rotation ETF is a rules-based, actively managed strategy that identifies high probability, bullish positions in ETFs drawn from 90 industry sectors and country specific indexes. The strategy’s foundation is based on the fact that institutional money rotates from sector to sector and around the globe.  Our algorithms monitor and rank the 90 US-based industry sectors and country indexes and “follows the money”.  The objective of this strategy is to generate excess returns over global stock market indices, while reducing risk by diversifying across myriad industry sectors and global markets.

This strategy also allocates 15% to 25% of the portfolio, when appropriate, to options-based hedge trades to reduce downside exposure and portfolio volatility during market corrections and crashes.  For the bullish positions we buy the underlying ETFs, and allocate approximately 4.5% of the portfolio to each position.

Summary of Benefits

Dynamic allocation of ETF positions that “follow the money” as large institutions rotate cash across 90 industry sectors and country specific indexes.

• Diversified across approximately 27 ETFs that represent myriad industries and countries, which reduces single position risk and geographic exposure risk.
• Follows well defined exit rules to close positions as dictated by the technicals, which increases the probability of preserving capital and a high percentage of the gains during periods of high volatility.

When appropriate, the strategy will allocate up to 25% of the portfolio to options-based hedge trades

• Reduces volatility of the portfolio
• Offers protection during market corrections or black swan market crash events

Sophisticated analysis comprising technical, fundamental and factor-based quantitative analysis

• Identify ETFs that have moved into high probability technical setups, including:
  • Accumulation and distribution
  • Relative strength
  • Momentum
  • Candlesticks
  • Support & Resistance
• Perform factor-based quantitative screen to identify ETFs that:
  • Have high probability of making a move up or down
  • Have high probability that the magnitude of the move will be significant

To view the performance for this strategy please go here.