ETF PM’s three absolute return strategies target gains in both up and down markets. We employ rules-based trend following in an effort to deliver strong growth with principal protection. On a long-term basis, we target average annual returns well above 10%, with overriding risk limits of 10% to 20% per year.
In order to reduce risk and maximize client value, all of these flexible portfolios may shift into cash as needed, none of them use short exposure, and we do not charge a performance fee.
See our ETF Trend Following presentation.
The 50/50 Portfolio is half trend following and half indexing. The objective is to provide strong growth with risk control through a combination of leading investment strategies that are uncorrelated. The strategy targets annual returns well over 10%, with a risk limit of 10% per year. Over 8.1 years since inception (1/08 – 1/16), our 50/50 Portfolio gained 27% while 60/40 SI gained 44%.
Our Tactical (T) portfolio employs a disciplined trend following strategy that rotates leading ETFs. The objective is to provide strong growth with risk control through efficient ETF rotation. T targets annualized returns well over 12%, with a risk limit of 12% per year. Over 19 months since inception (7/14 – 1/16), Tactical (T) was down 3% while the S&P 500 was up 2%.
Tactical 2x (T2)
Our Tactical 2x (T2) portfolio employs dynamic ETF trend following, with the use of up to 2x leverage at select times. The objective is to enhance performance with the disciplined use of leverage. T2 targets annualized returns well over 15%, with a risk limit of 20% per year. Over 19 months since inception (7/14 – 1/16), Tactical 2x (T2) was down 9% while the S&P 500 was up 2%.
*In July 2014, the prior portfolios below were upgraded to our Tactical strategy above.
The Aggressive Growth portfolio provided tactical rotation of concentrated ETFs that track individual sectors, developed and emerging foreign countries, commodities, real estate, and/or fixed income. Over 9.5 years since inception (1/05 – 6/14), our Aggressive Growth portfolio gained 45.5% while the Systematic Index increased by 27.2%.
The Global Growth portfolio offered tactical rotation of ETFs that track broadly diversified equity indexes. Over 6.5 years since inception (1/08 – 6/14), our Global Growth portfolio gained 21.9% while the Systematic Index gained 13.6%.
Past performance does not guarantee future results. See our disclosures for additional information.