Related: Getting Cautious on Junk Bond ETFs
The FormulaFolios Smart Growth ETF also acts like a fund-of-funds and will seek to provide capital growth. It will primarily invest in domestic and foreign growth-oriented equity securities of any market capitalization, along with US Treasuries or other cash equivalents.
FFSG will be 100% invested in growth-oriented equity ETFs when the advisor’s investment models indicate a bullish trend in equities. The fund, though, will be 50% invested in growth-oriented equity ETFs and 50% invested in US treasuries and/or other cash equivalents when the models indicate a bearish trend for the equity markets.
FFSG’s investment model is based on technical momentum, economic, and behavioral analysis indicators used to determine if the market is doing well or poorly, including moving average crossovers, oscillators, price acceleration measurements, labor market data, market breadth data, earnings data and analyst sentiment data.
For more information on new fund products, visit our new ETFs category.