Tactical Equity ETF

Strategy Objective

The Tactical Equity ETF Strategy seeks growth through capital appreciation from the tactical investment in risk-appropriate ETFs. As with all L&S tactical long/cash strategies, we protect capital in riskier markets by moving from equities up to 100% cash.

The Tactical Equity ETF Strategy consists of 8-10 concentrated positions, with a focus on domestic equity exposure. ETFs are chosen based on their participation in economic cycle appropriate sectors.

Core Client

The core client for this strategy would be a risk-tolerant client seeking capital growth over a long time horizon.

Strategy Highlights

  • Tactical all-cap exposure, domestic and international
  • Invests solely in ETFs, with a primary focus on domestic ETFs
  • Typically concentrated in a few sectors, including up to 100% cash (Treasury bills or U.S. government money market funds)

Key Benefits of All L&S Strategies

  • Active long/cash allocation. We aim to maximize returns in low-risk markets by investing in what we believe to be promising equities and preserve capital in riskier climates by moving at any time up to 100% cash.
  • Disciplined, data-driven risk management. We make tactical decisions based on rigorous economic data tracking and top-down macroeconomic analysis.
  • Unconstrained approach. We don’t limit ourselves to a single style box or market capitalization. We’re free to pursue what we believe to be the best opportunities across the entire stock universe.
  • NO leverage, options, shorting, or currency hedging, reducing complexity and fat-tail risk.
  • Less volatility and downside risk. Designed in an effort to reduce volatility and downside risk in comparison to traditional buy-and-hold strategies.