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: