Low/Smart Beta sector rotation ETF model

Alpha Portfolios Model ETF Managed Investment Portfolios

The Low/Smart Beta sector rotation model ETF portfolio

Strategy invests in large capitalization sectors that exhibit lower beta (lower volatility) relative to other sectors in the S&P 500 index
Low Beta Smart Beta sector rotation ETF Model Investment Portfolio

Low Beta sector rotation ETF Model Investment Portfolio

The results of this model portfolio are based on a backtest, which is a representations of a portfolio. The backtest results are hypothetical and actual results will vary. Performance of this model portfolio may differ substantially from the results of the backtest depicted here. Please see Portfolio and Backtest disclosures about this model portfolio.

Investment Philosophy

  • Low Beta strategy is large capitalization sector rotation investment model designed to outperform the S&P 500 Index
  • Low Beta strategy takes advantage of the low volatility effect that shows that low volatility equities outperform the market
  • Low Beta invests in liquid, large cap low cost SPDR ETFs from State Street Global Advisors

Investment Process

Low Beta sector rotation strategy analyzes volatility and beta parameters of large capitalization sector ETFs and picks sectors that exhibit lower longer term beta characteristics. Strategy is always invested in the market.

Performance

Low Beta Smart Beta sector rotation ETF Model Investment Portfolio

"S&P 500" - The Standard & Poor's 500, is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ
Sources: Rockledge, Compustat, Yahoo
Backtested performance

Benefits of the Portfolio

  • Designed to outperform S&P 500 in up and down markets
  • Aim to provide higher risk adjusted returns relative to the S&P 500
  • Liquid holdings
  • Diversified holdings minimizing individual company specific risk

Who Should Invest

  • Investors looking for long term capital appreciation and growth portfolio
  • Investors who are seeking to participate in equity market
  • Investors who are comfortable with medium investment risk

Portfolio Allocation - Low Beta strategy

Positions for September 2014

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Ticker Description Weight
XLE Energy Select Sector SPDR 25%
XLK Technology Select Sector SPDR 25%
XLU Utilities Select Sector SPDR 25%
XLV Health Care Select Sector SPDR 25%

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