Global Sector Rotation ETF is a rules-based, actively managed strategy that identifies high probability, bullish positions on ETFs from within 90 US-based 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 a portion of the portfolio, typically 15% to 25%, 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 five to six percent of the portfolio to each position. This strategy is offered both as self-managed and autotrade.
Summary of Benefits
Managed by a portfolio manager who:
- Follows strict exit rules and will close positions decisively as dictated by the technicals of the ETF
- This dramatically increases the probability of preserving any gains and capital during periods of high volatility
Typically allocate 15% to 25% of the portfolio to options-based hedge trades
- Reduces volatility of the portfolio while boosting returns
- Offers protection during market corrections or black swan market crash events
Dynamic allocation of ETF positions that “follow the money" as large institutions rotate cash across 90 industry and country sectors
Portfolio is diversified across approx. 15 ETFs that represent myriad industries and countries, which reduces single stock risk and geographic exposure risk.
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 indicators
- Candlestick analysis
- Support & Resistance analysis
- 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