The Global Unconstrained model is a combination of our U.S Unconstrained and International Unconstrained models.
By combining the two models, this dynamic model becomes a core investment for many portfolios. The model can invest in U.S stocks, bonds, International Developed and Emerging Markets based on current market conditions.
Each month the combined two models rank over 80 ETFs to choose the top-performing ones. When fully invested, this model will hold 20 ETFs.
The model’s dynamic allocation ranks market opportunities based on Relative Return, Absolute Return, and Volatility. Monthly, mathematical scoring ranks ETFs for each investment model and the top-ranking positions are allocated to meet current market conditions.
As ETFs move in and out of favor, the model rotates its market exposure, alternating its positions based on their mathematical ranking relative to the prior month’s allocation and each other.
Although not anticipated, in some market conditions, it is possible that cash and fixed income positions can be the highest mathematical ranking within each model.
What is Drawdown?
Drawdown is the measure from the highest high to the lowest low or peak-to-trough during a specific time period. It is an important measurement of risk. A larger drawdown requires a more significant increase in the portfolio to recover.
Volatility measures the change in price of an investment. The higher the volatility, the higher the difference between the high and the low of an investment’s price.