Tactical ETF Strategies

Julex offers a variety of tactical ETF strategies aiming to limit the downside risk while maximizing the upside potentials. All the strategies strive to deliver attractive total returns and outperformance over the relevant benchmarks over a full market cycle. Seven main model products including Dynamic Income, Dynamic Sector, Dynamic Multi-Asset, Dynamic Developed Market, Dynamic Emerging Market, Dynamic Real Asset and Macro Opportunities. Financial advisors, individuals, and institutional clients will typically choose one of the seven strategies, or combination of strategies, depending upon the investment objectives, risk tolerance, and other factors they are trying to meet.

A tactical US allocation strategy seeks to achieve better returns than Dow Jones Moderate US Index and S&P 500 Index with lower volatility and lower peak-to-trough drawdowns over a full market cycle. The strategy rotates between the S&P industry sectors, style classifications, and bond investments. It is a flexible strategy that allocate the portfolio between 100% in equity and 100% in fixed income or cash depending upon the risk environment.

Dynamic Sector Review Q3, 2018

A tactical US allocation strategy seeks to achieve better returns than Dow Jones Moderate US Index and S&P 500 Index with lower volatility and lower peak-to-trough drawdowns over a full market cycle. The strategy rotates between US large cap, mid cap, small cap and bond ETFs.  It is a flexible strategy that can be 100% in equity or 100% in bonds.

An international equity strategy that seeks to achieve better returns than the MSCI EAFA index with lower volatility and lower peak-to-trough drawdowns in a full market cycle. The strategy rotates among the country ETFs in the equity markets of developed economies. It has the flexibility of investing only in bond ETFs or/and cash equivalents in the negative market environment. It aims to deliver attractive total returns instead of managing against any particular benchmark.

An emerging market strategy that seeks to achieve better returns than the MSCI Emerging Market index with lower volatility and lower peak-to-trough drawdowns. The strategy rotates between the countries, regions and styles in the emerging markets and bonds. It is a flexible strategy that will include allocations that can be either focused or diversified depending upon the risk environment.

A multi asset class high income strategy that seeks to achieve better returns than the Barclay’s Aggregate U.S. Bond Index with comparable volatility and lower peak-to-trough drawdowns. The multi asset class strategy can include ETF, ETN, or index fund investments in income-producing asset classes including dividend-paying equities, real estate, high yield bonds, emerging market bonds, and U.S. Treasury bonds. It is a flexible strategy that will include allocations that can either be focused or diversified depending upon the risk environment.

A multi asset class real return strategy that seeks to achieve better returns than the Barclay’s Aggregate U.S. Treasury Inflation Protection Securities Index with comparable volatility and peak-to-trough drawdowns. The multi asset class strategy can include ETF, ETN, or index fund investments in real asset classes including material and energy equities, real estates, MLPs, commodities, gold and U.S. Treasury Inflation Protection bonds. It is a flexible strategy that will include allocations that can either be focused or diversified depending upon the risk environment. The strategy can be used by investors who want to have their assets outlast inflation.

A multi asset class strategy that seeks to achieve better returns than moderate asset allocation portfolio with lower volatility and lower peak-to-trough drawdowns. The multi asset class strategy can include ETF, ETN, or index fund investments in U.S. and international developed market stocks and bonds, as well as gold, energy, commodities, emerging market securities, and real estate. It will include four macro asset classes that are best determined to outperform in that risk environment.

A macro strategy that invests equally in the Dyamic Multi-Asset, Dynamic Sector, and Dynamic Income. It aims to outperform HFRI Global Macro Index with a low correlation with traditional asset classes. Its investment universe includes US equities and bonds, international equities, emerging market equities and bonds, real estates and MLPs. The positions chosen are depending upon the risk environment and asset performance.