iQ Sector ETF Allocation Model

IMPORTANT! In any given 3-month period, the iQ Sector ETF Allocation Model can be heavily allocated to money market / equivalents.

INVESTMENT OBJECTIVE

The iQ Sector ETF Allocation Model seeks to outperform the S&P 500 by quarterly reallocating to sectors poised for growth, based on proven indicators.

RULES-BASED PROCESS

The iQ Sector ETF Allocation Model uses a tailored strategy for each S&P 500 sector to decide whether to invest or hold cash. Every quarter, based on technical signals, the model selects the best ETF for each sector through a rigorous evaluation process, aiming to optimize returns by adapting to market changes and sector opportunities.

The model reconstitutes every Feb, May, Aug, and Nov.

Benefits of Sector Allocation Strategies

The iQ Sector ETF Allocation Model uses a multi-strategy approach for choosing domestic stock mutual ETFs, offering several advantages:

• Custom Technical Strategies: Each S&P 500 sector is evaluated with its own unique technical strategy, allowing for signals that are tailored to the market conditions of each sector.

• Flexible Positioning: The model switches between taking long positions in sectors and holding cash, providing adaptability to changing market environments.

• Risk Management: By diversifying across various sectors and adjusting between long signals and cash, the model seeks to reduce the risks associated with market fluctuations.

• Proactive Adjustments: With quarterly updates, the model continuously adapts to new market trends, ensuring the portfolio stays aligned with current market conditions.

Like any market-dependent investment, the iQ Sector ETF Allocation Model carries risks, including sector performance fluctuations and overall market volatility that can impact returns. Additionally, the effectiveness of the model’s technical strategies and ETF selection may vary, and there is no assurance that it will consistently deliver positive results or outperform other investment approaches.