iSectors offers two Tactical Allocation models that are reallocated on a monthly basis. Although each allocation model uses a different algorithm, they both share a common objective -- to determine when opportunities of being invested have the potential to be rewarded, and to identify when trends are perhaps not as favorable and the portfolio may be better served by rotating into cash.
iSectors® Tactical Global Balanced Allocation makes a determination every month whether to be invested in, or get out of as many as 7 broad asset classes. These asset classes include: U.S. equities, international equities, emerging market equities, U.S. bonds, commodities, REITs and gold. The allocation model is intended to be used as a core holding. The model applies an objective algorithm across these broad asset classes in an attempt to provide superior returns with low drawdowns. (Model Profile)
iSectors® Tactical International Allocation. International and emerging market equities may offer investors the opportunity to generate returns greater than what may be obtained by investing strictly in domestic markets, particularly because many global economies, because they are smaller, may offer the potential of growing faster than our domestic economy. With the potential reward comes increased risk because international and emerging markets can be volatile. Therefore, iSectors believes investors may be best served by using a tactical approach when investing in foreign markets. The iSectors Tactical Allocation model applies its objective, momentum-based algorithm exclusively to the universe of international ETFs. Designed to be utilized as a portfolio’s international allocation, this model attempts to seek out and invest in international and emerging market ETFs that offer both absolute and relative potential to outperform. Conversely, when trends in international and emerging markets appear to be unfavorable, the model rotates a portion, or in some cases, the entire portfolio, to cash. (Model Profile)
