iQ Risk On / Risk Off Model - ETFs

  • 8.18% max draw-down

  • 25% downside capture ratio

 

CLICK HERE for a Model Fact-card.

A CUTTING-EDGE RISK ON / RISK OFF MODEL FOR ETFs

The iQUANT.pro Monthly Risk On / Risk Off Model - ETFs utilizes four non-correlated factors to determine an allocation between stock ETFs (Risk On) and a bond ETF (Risk Off).

The Model utilizes the following four non-correlated factors:

•Technical (price to moving average)

•Macro (movement of the US Dollar)

•Valuation (S&P 500 P/E and Earnings Yield)

•Seasonal (six months in, six months out)

HOW DOES THE MODEL WORK?

Each of the aforementioned factors account for 25% of the Model’s allocation.  If all four of the factors are “risk on”, then 100% of the Model is allocated to stock ETFs.  If 2 of the 4 indicators are “risk on”, then 50% of the Model allocates to stock ETFs while the other 50% allocates to a bond ETF.

HOW ARE THE ETFs SELECTED?

The iQUANT.pro Risk On Risk Off ETF Model follows a monthly rules-based and repeatable investment selection process:

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