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CMG > Our products > TREND Series of Portfolios > CMG Tactical Equity Strategy

CMG Tactical Equity Strategy

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  • CMG Tactical Equity Strategy Performance
  • Correlation Matrix
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Risk Profile:  Aggressive Growth

Strategy Description:  The CMG Tactical Equity Strategy seeks growth opportunities across global equity markets. The strategy utilizes a rules-based, relative strength investment process that evaluates price trends of over 400 global equity exchange-traded funds (ETFs). The strategy dynamically adjusts allocations within the portfolio, seeking to capitalize on a wide range of equity investment opportunities.

The investment process analyzes the individual price trends of more than 400 ETFs, allocating to the ETFs demonstrating the highest relative price strength. The strategy selects the highest ranked ETF in each of the following categories: U.S. equities, international developed equities and emerging market equities. A maximum of three ETFs are held with a 50% weighting to U.S., 30% international developed and 20% emerging markets. Embedded within the investment strategy is a disciplined, rules-based, risk-management process that enables the strategy to allocate up to 100% of the portfolio to short-term Treasury bills or other cash alternative ETFs.

The CMG Tactical Equity Strategy has a multi-step portfolio construction process:

  1. Global Investment Universe– The potential investment universe is comprised of 400+ ETFs encompassing the following global asset classes.
    • U.S. equities: large/mid/small cap, value, growth and sector
    • International developed equities: various developed market country-specific
    • Emerging market equities: various emerging market country-specific
  1. Assets in Uptrend– The investment process identifies ETFs that are in defined uptrends. Only ETFs in a defined uptrend will be eligible for selection into the portfolio.
  2. Relative Strength Score –The investment process analyzes short-, intermediate- and long-term time frames to rank ETFs with CMG’s proprietary relative strength scoring system. ETFs that exhibit strong upward price trends with lower volatility will rank highest. Once selected, positions are re-evaluated after an initial holding period to confirm persistent relative strength.
  3. Portfolio Allocation: 50% domestic equities, 30% international equities, 20% emerging market equities.

Benefits: 

  • Global equity exposure that seeks to capture positive price trends while minimizing risk during periods of market decline.
  • Flexible, active asset allocation adapts the portfolio to changing risks and market conditions.
  • CMG’s TREND engine deploys a quantitative tactical process that adjusts to market conditions, and when prudent, lowering exposure and correlation to enhance traditional portfolio diversification. 

Investment Objective:  Capital Appreciation

Suggested Portfolio Positioning:  Serves as a complement to a client’s traditional equity portfolio

Suggested Allocation:  Typically representing 20-40% of a client’s equity allocation or 12-25% of a client’s total portfolio

Benchmark:  MSCI All Country World Index

Morningstar Peer Group: World Allocation/Tactical Allocation

*No inverse or leveraged ETFs are used.

Past performance is no guarantee of future returns.

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Important disclosure information: This website, and above links, contains information that has multiple authors and will offer multiple opinions on topics of interest. Any original written material on this website, either authored by CMG staff or external authors, are strictly the opinion of the author and not of CMG. If you find material that is inaccurate or defaming in any way, please contact us.

No Solicitation or Investment Advice: The material contained on this website is for informational purposes only and CMG is not soliciting any action based upon such material. The material is not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice. Additionally, the material accessible through this website does not constitute a representation that the investments described herein are suitable or appropriate for any person.
Various links on this site will allow you to leave the CMG Web site. The linked sites are not under the control of CMG, and CMG is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites. CMG is not responsible for any correspondence via email or any other medium, email list servers, webcasting or any other form of transmission received from any linked site. Links to external sources do not imply any official endorsement by CMG or the opinions, ideas or information contained therein, nor guarantees the validity, completeness or utility of the information provided. Reference herein to any products, services, processes, hypertext links to third parties or other information does not necessarily constitute or imply endorsement, sponsorship or recommendation. CMG shall not be held liable for improper or incorrect use of data or information contained in any electronic publications. Data, information, and related graphics contained in electronic publications are not legal documents and are not intended to be used as such. CMG gives no warranty, express or implied, as to the accuracy, reliability, utility or completeness of any information contained in any electronic document.

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