We track 60+ Tactical Asset Allocation (TAA) strategies, allowing us to draw some broad conclusions about TAA as a style. So far, TAA has followed the pattern investors have come to expect: 1. Initial market losses have been pared down 2. Portfolios have been significantly de-risked, with further de-risking expected next month if market losses continue 3. Performance over this entire event will depend on whether this is the beginning of a protracted bear market or just a short, sharp pullback . . . Right now, the average TAA strategy is 69% allocated to defensive assets like bonds and gold.
Two Commodity funds of 15 holdings have created a balanced portfolio value for the last month.
COMT’s Prospectus Stated Objectives
The investment seeks to track the investment results of the S&P GSCI Dynamic Roll (USD) Total Return Index composed of a broad range of commodity exposures with enhanced roll selection, on a total return basis. The index measures the performance of futures contracts. In seeking to achieve its investment objective, the fund may invest in a combination of exchange-traded commodity futures contracts, exchange-traded options on commodity-related futures contracts and exchange-cleared commodity related swaps (together, “Commodity Linked Investments”), thereby obtaining exposure to the commodities markets.
PDBC’s Prospectus Stated Objectives
The investment seeks long term capital appreciation. The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing in a combination of financial instruments that are economically linked to the world’s most heavily traded commodities. Commodities are assets that have tangible properties, such as oil, agricultural produce or raw metals.