The Tactical I Regime Strategy




About the Tactical I Regime Strategy

This strategy employs a tactical asset allocation framework optimizing a large global asset pool of international equities and bonds. The strategy aims to achieve positive portfolio growth in most environments by dynamically adjusting the investment universe depending on market regime. Holdings are determined by a relative strength ranking and weighted using momentum, volatility and correlation factors.

Strategy ETFs

Vanguard Total Stock Market (VTI)

The Vanguard Total Stock Market ETF is a passive ETF that seeks to replicate CRSP US Total Market Index. The index includes 4,000 constituents across mega, large, small and micro capitalizations, representing nearly 100% of the U.S. investable equity market, VTI can be traded easily in any size, and true holding costs are even lower than its microscopic fee. In short, it’s incredibly cheap to access and to own.

iShares MSCI EAFE (EFA)

The iShares MSCI EAFE ETF tracks a market-cap-weighted index of developed-market securities based in Europe, Australia and the Far East. It excludes the US and Canada, and small-caps.

iShares MSCI Japan (EWJ)

The iShares MSCI Japan ETF tracks a market-cap-weighted index of Japanese stocks. The fund covers roughly 85% of the investable universe of securities traded in Japan. The fund trades hundreds of millions of dollars on most days, at pennywide spreads.

iShares MSCI Emerging Markets (EEM)

EEM is a passive ETF that seeks to replicate MSCI Emerging Markets Index. The index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

Vanguard REIT (VNQ)

VNQ is at the top of the charts for US real estate ETFs. The index is a free float market capitalization weighted benchmark that is comprised of equity REIT securities that belong to the MSCI US Investable Market 2500 Index. The index is designed to cover about two-thirds of the value of the entire U.S. REIT market. To be eligible for inclusion, REITs must have a market capitalization of at least $100 million, with enough shares and trading volume to be considered liquid.

SPDR Dow Jones Global Real Estate ETF (RWO)

RWO provides diversified exposure to the global real estate industry, with its 200+ holdings spanning multiple sectors, including commercial and residential REITs, real estate developers, specialized REITs, and investment management fund operators.

Vanguard Total Bond Market Index Fund (BND)

The Vanguard Total Bond Market ETF tracks a broad, market-value-weighted index of US dollar-denominated, investment-grade, taxable, fixed-income securities with maturities of at least one year.

iShares 1-3 Year Treasury Bond (SHY)

SHY is a passive ETF that seeks to replicate Barclays Capital U.S. 1-3 Year Treasury Bond Index. The index measures the performance of U.S. Treasury securities that have a remaining maturity of at least one year and less than three years.