Absolute Return Strategies
ETF PM’s actively managed portfolios attempt to deliver gains in both up and down markets. These absolute return strategies employ rules-based trend-following with exchange-traded funds (ETFs) in an effort to provide strong growth with principal protection. On a long-term basis, we target average annual returns of 15% to 25% with overriding risk limits of 8% to 12% per year.
Our five absolute return portfolios include three long-only strategies and two long/short. In order to reduce risk and maximize client value, all of these strategies may shift into cash as needed, none of our portfolios use leverage and we do not charge a performance fee.
Long Only
The Basic Alpha portfolio employs strategic rotation among diversified ETFs that track global developed equities, emerging markets, real estate, commodities, and fixed income. This is a new actively managed portfolio that ETF PM launched at year-end 2009.
The Global Growth portfolio offers strategic rotation of ETFs that track broadly diversified equity indices. Over the past 26 months since inception (1/08 – 2/10), our Global Growth portfolio gained +14.0% while the S&P 500 fell -20.8%.
The Aggressive Growth portfolio provides strategic rotation of concentrated ETFs that track individual sectors, developed and emerging foreign countries, commodities, real estate, and/or fixed income. Over the past five years since inception (1/05 – 2/10), our Aggressive Growth portfolio gained +38.5% while the S&P 500 returned just +1.5%.
Long/Short
The Long/Short portfolio employs strategic rotation of concentrated ETFs both long and short. This portfolio offers rotation among individual sectors, developed and emerging foreign countries, commodities, real estate, and/or fixed income. Over the past 26 months since inception (1/08 – 2/10), our Long/Short portfolio was flat while the S&P 500 fell -20.8%.
The Advanced Alpha portfolio, formerly known as Core Alpha, is an equal combination of our Global Growth, Aggressive Growth and Long/Short strategies. This three strategy portfolio employs a dynamic combination of overriding risk controls and may shift up to 40% into short exposure. Over the past 26 months since inception (1/08 – 2/10), our Advanced Alpha portfolio gained +3.2% while the S&P 500 fell -20.8%.
Performance & Presentations
For a complete list of ETF PM’s performance summaries and strategy presentations, please visit our respective pages: Performance and Presentations.
Past performance is not an indication of future results. See our disclosures page for full disclosure on all of ETF PM’s portfolios.
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