Examples:
True Sector Rotation®
Strategies and Portfolios
A Strategy is simply a set of up to 12
mutual funds or ETFs selected to manage an investment account. For
example, a Strategy may focus on country funds, sector funds,
index funds, income producing funds, or conservative
bonds and treasuries. After you've selected a set of
funds for your Strategy, it's the job of AlphaDroid's True Sector Rotation
algorithm to determine which
one (and only one) of them to own next month.
It's only by
owning the trend leader and avoiding trend laggards that one can simultaneously improve
returns and reduce risk.
Additionally, there are example
Strategy-of-Strategies and
Portfolio-of-Strategies in the tables below.
A Strategy-of-Strategies (SoS) reduces the risk of hindsight bias by
broadening the funnel of funds that contend for leadership. With an
SoS you own only the best trending fund of the best trending
Strategy. A Portfolio-of-Strategies reduces the remnant risk of
individual Strategies in the same way ordinary diversification
reduces risk within a fund. Closely examine the risk and return
performance of each to understand the ways in which they can improve
investment performance.
Std. ETFs
| ETF Sectors / Mixed (no leverage) | ||||
 ETF Mix - II |
 ETF Mix - I |
 ETF Power Mix - II |
 ETF Power Mix - I |
 ETF Kick Ass Mix |
| ETF International / Conservative (no leverage) | ||||
 ETF U.S. Diversified |
 ETF World Regions |
 ETF Countries - iShares |
 ETF Dividend Bond Treasury |
 ETF Black Gold Hedge |
Mutual Funds
| Fidelity Mutual Funds | ||||
 Fidelity High Income-Bond |
 Fidelity International |
 Fidelity Select Funds - I |
 Fidelity Select Funds - iI |
 Fidelity Select Funds - iiI |
| Vanguard Mutual Funds | ||||
 Vanguard Income, Bond |
 Vanguard US Diversified |
 Vanguard Sectors |
 Vanguard Mutuals Mix-1 |
 Vanguard Mutuals Mix-2 |
401k, PERS, TSP
| 401(k) Company Plans | ||||
 401k - Amazon |
 401k - Del Monte |
 401k - Kaiser Permanente |
 401k - Oracle |
 401k - Yahoo! |
| PERS and TSP State and Federal Plans | ||||
 Texas State 401k |
 New York State 457 DCP-1 |
 Connecticut State 457b |
 Wash. State DRS Plan 3 |
 TSP Thrift Savings Plan |
Strat-of-Strats
|
A Strategy-of-Strategies (SOS) selects the best
performing Strategy from a set of Strategies. A well
designed SOS will typically only perform a little
better than the best Strategy in the set. However,
this statement is still significant in two ways.
First, if many years ago you had selected just one Strategy from the set to own over this period, you likely would not have correctly guessed which one would have performed the best. Second, at some time in the future, some of these Strategies will likely have a performance flat tire for a period of time because the Strategy design does not include that one sector or asset class that becomes singularly important at that time. This risk of future underperformance is called Hindsight Selection Bias. In either case, the solution is having an SOS that automatically selects the best performing Strategy from a set of Strategies when the currently owned Strategy starts underperforming for any reason. All of the underlying Strategies in these SOS examples may be viewed in other tabs on this page, and may be imported into your company Strategies Management page. |
|||
| Strategy-of-Strategies | |||
 SOS: ETF Power Mix |
 SOS: ETF Conservative |
 SOS: Fidelity Global |
 SOS: Vanguard Global |
Port-of-Strats
|
A Portfolio-of-Strategies utilizes the risk reduction sequence of;
(1) company diversification with in funds to reduce
volatility risks associated with individual companies,
(2) serial diversification within
Strategies to simultaneously boost returns and
reduce risk by owning only trend leaders and avoiding trend laggards, and
(3)
Strategy diversification within a portfolio to
reduce volatility associated with the
sectors and asset classes owned by its Strategies.
The fifth Portfolio below, Secret SoS, adds an additional Strategy-of-Strategies layer designed to reduce the possible risk of future underperformance induced by hindsight selection bias during Strategy construction. All of the underlying Strategies in these portfolios may be viewed in other tabs on this page, and may be imported into your company Strategies Management page. |
||||
| Portfolio-of-Strategies | ||||
 Portfolio: ETF Aggressive |
 Portfolio: ETF Conservative |
 Portfolio: Fidelity Global |
 Portfolio: Vanguard Global |
 Portfolio: Secret SOS |