Sector Rotation


Strategy Overview

VGA’s Sector Rotation strategy seeks long-term, risk-managed capital appreciation by investing in the top-ranked sectors of the S&P 500, as determined by VGA’s proprietary sector ranking models.

The strategy is offered in two versions: hedged and long-only via an SMA structure.

Sector Rotation Strategy

Strategy Summary

The strategy invests in an equity portfolio of S&P 500 sector exchange-traded funds (ETF’s) to varying degrees based upon their total return potential, as determined by VGA’s proprietary ranking models.

Top-ranked sectors receive a higher portfolio weight and bottom-ranked sectors receive a lower weight (or are held in cash).

The hedged version deploys a risk-managed approach whereby equity exposure is reduced when our macro models determine the investment backdrop has deteriorated.

Strategy Objective

The strategy seeks two primary objectives:

  1. Long-term, risk-managed capital appreciation.
  2. To outperform the IQ Long / Short Equity Hedge index over a full market cycle.

Portfolio Managers

Tom Samuelson, CFA, CMT
Chief Investment Officer
Kendall Dilley, CFA, CMT
Portfolio Manager

Strategy Information

  • Inception: August 2015
  • Category: Long-Short Equity and US SA Large Blend
  • Structure: Managed Account (SMA)
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