3EDGE Conservative Strategy – White Paper | ETF Trends

The 3EDGE Conservative strategy is specifically designed to offer clients an alternative to their bond portfolios with lower targeted risk and higher targeted return than the Bloomberg U.S. Ag­gregate Bond Index under a wide variety of economic and market conditions.


The strategy seeks to target¹ the following:


• 3 to 6% return net of fees

• Standard deviation of 3 to 6% 

• Maximum drawdown of no more than 6%

• Beta of 0.2 versus the S&P 500 Total Return Index


For more information, please download our latest white paper on the 3EDGE Conservative Strategy – A potential solution to the challenges bond market investors are likely to face as you consider solutions for your clients in this new environment of rising inflation and interest rates.

¹Target objectives are desired risk/return targets over a full market cycle, i.e., 5-7 years. Target risks and returns are subject to certain limitations. One limitation is that target risks and returns do not consider the impact that real market and economic risks may have on actual results. In addition, projected/target risks and returns are subject to uncertainties that may change at any time, and, therefore, the actual risks and performance results may differ materially from target risk and returns. The investment performance of the Conservative Strategy offered by 3EDGE cannot be guaranteed. Inherent in any investment is the possibility of loss.

About 3EDGE

3EDGE Asset Management, LP, is a global, multi-asset investment management firm serving institutional investors, the advisor marketplace, and private clients. 3EDGE strategies act as tactical diversifiers, seeking to generate consistent, long-term investment returns, regardless of market conditions, while seeking to manage downside risks. The primary investment vehicles utilized in portfolio construction are index Exchange Traded Funds (ETFs). The investment research process is driven by the firm’s proprietary global capital markets model.

The model is tested over the widest variety of economic and market conditions and translates decades of research and investment experience into a system of causal rules and algorithms to describe global capital market behavior. 3EDGE offers a full suite of solutions, each with a target rate of return and risk parameters, to seek to meet investors’ different objectives. Of course, investing involves risks and the potential loss of your investment. There is no guarantee that any target return will be achieved.