Robust Momentum Tactical Strategy
The Newfound/ReSolve Robust Equity Momentum Index seeks to provide momentum-based exposure to global equity regions while simultaneously avoiding significant and prolonged drawdowns.
Overview
| Portfolio Manager | David Miller |
| Portfolio Manager | Charlie Ashley |
| Index | Newfound/ReSolve Robust Equity Momentum Index |
Strategy Description
The Newfound/ReSolve Robust Equity Momentum Index uses a quantitative, rules-based methodology to provide exposure to broad U.S., international, and emerging equity indices to the extent that equity indices are exhibiting positive momentum relative to U.S. Treasury indices. The Index will include U.S. Treasury exposure when equities exhibit negative momentum and trend following characteristics versus the U.S. Treasury markets.
The Newfound/ReSolve Robust Equity Momentum Index seeks to provide momentum-based exposure to global equity regions while simultaneously avoiding significant and prolonged drawdowns.
MOMENTUM + TREND
TILT TOWARDS RELATIVE STRENGTH
The Index seeks to tilt towards outperforming equity regions – and thereby avoid perennial losers – by allocating towards the equity region that is exhibiting the strongest relative performance.
PROTECT AGAINST EXTENDED DECLINES
The Index seeks to avoid the impact of prolonged equity market declines by allocating towards short- or intermediate-term U.S. Treasuries when global equity market returns turn negative.
Each week, the Index combines the votes of thousands of simple models, pursuing robustness through a combination of simplicity and diversification, not complexity.
Each momentum and trend model follows its own, slightly unique process.
Each model submits a single vote as to which asset the portfolio should allocate to.
Votes across thousands of different models are tallied together.
Allocations to each asset are made in proportion to the number of votes received.
A Dimmer, Not a Light Switch
Despite the overwhelming empirical evidence supporting momentum and trend signals, our research suggests that overly simplified implementations can be surprisingly fragile.
Fortunately, many models that seek to capture momentum and trend are actually close mathematical cousins.
By combining thousands of simple – but slightly different – models together, we seek to benefit from process diversification and create a more robust investment result.
Example “Light Switch” Model
Hypothetical single system transition map. For illustrative purposes only.
Example “Dimmer Switch” Model
Hypothetical ensemble system transition map. For illustrative purposes only.
Disclosures
Shares of this ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
For more complete information on Strategy Shares, download and view a prospectus or summary prospectus now or call (855) 477-3837 for a free prospectus or summary prospectus. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus or summary prospectus, which you should read carefully before investing. Investing involves risk, including loss of principal. There is no guarantee that this, or any investment strategy, will succeed. Shares of these ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
There are risks involved with investing, including possible loss of principal. Investment in a fund of funds is subject to the risks and expenses of the underlying funds. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
The Fund will concentrate its investments in securities of a particular industry and/or geographic region to the extent the Index does. This may cause the Fund’s net asset value or market price to fluctuate more than that of the Fund that does not concentrate in a particular industry or geographic region.
Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may not be backed by the full faith and credit of the U.S. government, which could affect the Fund’s ability to recover should they default. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.
The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.
Investors should carefully consider the investment objectives, risks, charges and expenses of the ETFs. This and other important information about the Funds is contained in the full or summary prospectus, which can be obtained by calling (855) HSS-ETFS (855-477-3837) or at www.StrategySharesETFs.com. The Strategy Shares are distributed by Foreside Fund Services, LLC, which is not affiliated with Rational Advisors, Inc., or any of its affiliates.