The Tactical ETF Strategies are actively managed, risk-controlled strategies that increase or decrease the equity exposure based on a quantitative methodology of anticipating risk, according to a fact sheet. In simplified terms, the fact sheet said, if the potential risks outweigh the rewards, the Tactical Strategy will reduce the equity exposure by 20% of the target allocation. If the rewards and risk are more attractive than fixed income, the Tactical Strategy will increase the equity exposure by 20% of the target allocation.
The Tactical ETF Strategies are Collective Investment Funds (CIFs) created by the Hand Composite Employee Benefit Trust, and administered by Hand Benefits & Trust Company, the trustee. Innealta Portfolio Advisors is the adviser to the fund.
Advisers, TPAs, employers, and 401(k) participants interested in the Tactical ETF Strategies CIFs should contact Gerard at 262-250-0800.
According to fact sheets on the strategies, the Conservative Tactical ETF Strategy begins with a 40% exposure to equity and 60% exposure to fixed income, and is actively managed to reduce risk. If the model perceives higher risk ahead, the equity weighting can be reduced to 32% of the portfolio. If the model anticipates a sustainable bullish environment, equity may be increased up to 48% of the portfolio value.
The Moderate Tactical ETF Strategy starts with a 50/50 equity/fixed income exposure and the equity allocation can swing from 40% to 60%. The Moderately Aggressive strategy starts with a 60/40 equity/fixed income exposure and equities can make up from 48% to 72% of the portfolio, depending on anticipated risk.
Finally, the Aggressive Tactical ETF Strategy starts with an 80/20 equity/fixed income exposure, and the equity allocation can range between 64% and 96%.
Fact Sheets for the Tactical ETF Strategies will be available at www.tacticaletfstrategies.com .
« PSCA Offers Free 401(k) Day Materials