The tactical sleeve employs a shorter-term view of market opportunities and threats. It is designed to adjust overall the portfolio risk/reward profile either higher or lower. Allocations are based on judgment of the projected investment environment for particular asset classes, the attractiveness of each asset class, and expected future returns of each asset class.
Meanwhile, the Gadsden Dynamic Multi-Asset ETF also seeks total return by investing in a variety of asset classes, geographies, and market capitalizations generally based on a long-term view of macroeconomic factors under the “strategic sleeve,” along with approximately 20% of its total assets to add or reduce exposure to one or more asset classes generally based on a short-term view of the market under the “tactical sleeve,” according to the fund’s prospectus.
GDMA uses a similar strategy but it takes on a broader multi-asset approach, including geographies, market capitalizations, international currencies, equities, fixed-income instruments, real assets and commodities.
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