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1. Once the indicators signal offense or defense, what is the opportunity set for the fund?
In offensive mode, ATAC can invest in U.S. large cap ETFs, U.S. small cap ETFs, or Emerging Market ETFs. In defensive mode, ATAC can invest in long duration bonds or short duration bonds.
2. How do you manage risks in the portfolios?
We manage risks by using diversified ETFs and employing a strategy that seeks to decrease the beta in our portfolios ahead of periods of market stress. It is important to note that while the fund can get defensive ahead of high volatility periods, this does not mean that volatility in the fund will not be higher at times than the stock market’s. Rather, fund volatility characteristics tend to be different than a simple buy and hold passive index.
3. Why doesn’t the Fund go to cash or use short positions during defensive periods?
In our research, using bonds as the lower beta option is superior to cash and short positions over a full market cycle. The fund is built to perform during a full market cycle which includes bull and bear market environments. Using cash and short positions can lead to significant underperformance during bull market periods.
4. Does the Fund use Leverage?
Yes. The fund may have up to 133% exposure when in offensive mode.
5. What is the turnover rate in the Fund?
The fund is intended to be an active risk management vehicle. As such, it is expected to have a high portfolio turnover which could exceed 1,000% on an annual basis, depending on market conditions. This is likely to result in short-term capital gains.
Diversification does not assure a profit nor protect against a loss in a declining market.
While the fund is no-load, management and other expenses still apply.
The Fund is only offered to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.