Ironclad ETF Core Model

Overview

The Ironclad ETF Core Model is designed to build resilient portfolios through strategic asset allocation and diversification. This model blends traditional and alternative investments to manage risk and optimize returns, ensuring a balanced approach to wealth management.

Objective

Our primary objective with the Ironclad ETF Core Model is to provide steady growth while mitigating risk through a well-diversified portfolio. This involves leveraging both traditional and innovative strategies to capture market opportunities and safeguard against volatility.

Strategy Process

The strategy process involves a meticulous selection of ETFs based on their performance, cost efficiency, and alignment with our investment goals. Key steps include:

  • Macro Analysis: Assessing global economic trends to determine asset allocation.
  • Fundamental Analysis: Evaluating the financial health and potential of the underlying assets within each ETF.
  • Strategic Allocation: Distributing investments across various sectors and asset classes to optimize risk and return.

Holdings Composition

The Ironclad ETF Core Model integrates a diverse mix of ETFs to achieve a balanced and resilient portfolio. Here’s how each component fits together:

  • Quality Growth: Utilizing ETFs like QGRW (Quality Growth ETF) to focus on high-quality companies with strong growth potential.
  • Parametric Sub-Advisor and Mechanics: Leveraging expertise from sub-advisors like InnovatorShares, with ETFs such as SFLR and QFLR that focus on fallen angels and quality factors.
  • Commodities Exposure: Including ETFs like GCC (WisdomTree Continuous Commodity Index Fund) to provide exposure to a broad basket of commodities, enhancing diversification.
  • Volatility Dampeners: Employing ETFs like TAIL (Cambria Tail Risk ETF), CAOS (Simplify Volatility Premium ETF), and MRSK (Morgan Stanley’s Managed Risk ETF) to hedge against market volatility.
  • Agriculture Exposure: Utilizing ETFs such as PDBA (Invesco DB Agriculture Fund) to gain exposure to the agricultural sector, which can provide inflation protection and diversification.

Strategy Implementation

Implementation of the Ironclad ETF Core Model involves continuous monitoring and adjustments to adapt to market conditions. This includes:

  • Regular Reviews: Conducting periodic reviews of ETF holdings to ensure alignment with the investment strategy and objectives.
  • Rebalancing: Adjusting the portfolio to maintain the desired asset allocation and risk levels.
  • Performance Tracking: Monitoring the performance of each ETF and the overall portfolio to make data-driven decisions.

Strategic Benefits

By integrating a diversified mix of ETFs, the Ironclad ETF Core Model aims to achieve the following benefits:

  • Diversification: Spreading investments across various asset classes to mitigate risk.
  • Stability and Growth: Balancing growth-oriented equities with stable fixed income and alternative investments.
  • Cost Efficiency: Utilizing low-cost ETFs to maximize net returns.
  • Risk Management: Incorporating risk management strategies to protect the portfolio during market downturns.
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