Model Objective
- Proprietary quantitative, rules-based methodology that makes a “probabilistic” determination of risk of loss for each ETF.
- Developed over a 16-year period.
Key Inputs to the Model
Output from the Model
- The RPg Tactical methodology determines a forecasted performance relative to cash returns.
- Results in a sector either included, or removed from the portfolio entirely
Tactical U.S. Equity Process
Investments Include
- Nine of the 10 major sectors of the S&P 500.
- Cash and or cash equivalents (used during bear markets).
Positions are evaluated on a weekly basis
Sector ETFs are traded using a disciplined rules-based methodology
- U.S equity exposures diversified across the major U.S. sectors.
- Implemented through liquid ETFs to enhance transparency and efficiency.
Sector position weighting for sectors remaining IN the portfolio are always equal weighted at the time of rebalancing
- There is a maximum cap of 25% for any sector ETF at time of rebalance.
- Final sector ETF weighting is determined after going through the ActiveParadigm process.
When 6 or more sectors are removed, the ActiveParadigm methodology will begin to raise cash
- When 3 sectors are IN, the portfolio will have 25% in cash; 2 sectors IN = 50% cash; 1 sector IN = 75% cash.
- Portfolio may have 100% in Cash & cash equivalents.