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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.
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.
The strategy seeks two primary objectives: