ARS Tactical Sector Allocation ETF Strategy

The ARS ETF approach leverages our investment philosophy and process, while providing a strategy that more closely tracks the benchmarks with limited turnover. Our ETF strategy offers important benefits for the implementation and management of client portfolios including exposure to broad markets, sectors and geographies with enhanced liquidity and transparency.

Equity Investments

• Approximately 80% of equity exposure is allocated to S&P 500 sectors
• We maintain sector weightings within a 10% variance to the actual weightings, ensuring a relatively close tracking with the S&P 500 while allowing ARS to use its judgment to reduce exposure to those sectors facing the greatest headwinds and to modestly overweight those sectors best aligned with the ARS Outlook.
• The remaining 20% of equity exposure is allocated to small-cap, mid-cap and international equities to enhance diversification.

Fixed Income Investments

• Our economic outlook is an important element in our assessment of interest-rate levels and credit worthiness for our evaluation of the bond market.