Over the past twenty years, the investment landscape has seen the mass adoption of exchange traded funds. ETFs offer investors a simple way to achieve exposure to underlying indexes both in and outside of the U.S. as well as diversification across multiple subsectors and asset classes. Contrary to mutual funds, ETFs can be traded intraday like equities, and expense ratios are often lower, making for an attractive alternative to more actively managed investment vehicles.
The JSPM Tactical ETF Strategy aims to provide investors with moderate growth while mitigating risk. The strategy currently holds 30 ETFs, weighted between 1.5% and 3.5% based on relative strength of the index or subsector. Cash levels will differ depending upon market environment and levered ETFs will be used sparingly. We will be reporting the performance of this strategy once we have a full quarter’s worth of data. The inception of the portfolio was near the beginning of April.
We expect to take a much more hands off approach with this strategy, making adjustments much less often than our alternative growth strategies. The portfolio will be rebalanced as necessary in attempt to overweight to ETFs exhibiting relative strength, while underweighting those areas which are lagging.
Current as well as prospective clients of JSPM LLC have come to know Ryan and I as active aggressive growth managers. Worry not, as that won’t be changing. Our backgrounds lend most well to active growth management, and that will forever be our primary focus. However, offering a well diversified ETF strategy comes at the behest of client need, and we felt it would be a great addition to what we do. A properly managed portfolio of ETFs allows us to mitigate company-specific risk and normalize portfolio volatility. It also allows us to allocate to multiple asset classes both within and outside of the U.S. One can expect moderate growth with a much smoother equity curve than our aggressive growth strategy counterparts.
As always, feel free to reach out to us to schedule a call with any questions.
Trent J. Smalley, CMT
Portfolio Lagging? We can can help. (MyPortfolioFix)
Get in touch (JSPMLLC)
Please remember that past performance may not be indicative of future results. Different types of
investments involve varying degrees of risk, and there can be no assurance that the future performance
of any specific investment, investment strategy, or product made reference to directly or indirectly in this
newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s),
or be suitable for your portfolio. Due to various factors, including changing market conditions, the content
may no longer be reflective of current opinions or positions. Moreover, you should not assume that any
discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute
for, personalized investment advice from JSPM LLC. To the extent that a reader has any
questions regarding the applicability of any specific issue discussed above to his/her individual situation,
he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current
written disclosure statement discussing our advisory services and fees is available for review upon review.