A new tactical rotation strategy ETF based on the behavior of lumber relative to gold began trading on the New York Stock Exchange on Wednesday.
The ATAC US Rotation ETF (NYSEArca: RORO) is the brainchild of Michael A. Gayed, CFA, Portfolio Manager of Toroso Investments, an investment management company specializing in ETF focused research, investment strategies, and services designed for financial advisors.
The ETF will track the ATAC Risk-On/Risk-Off Domestic Index (RORO.Index), designed to be a tactical US stock/Treasury rotation strategy based on the behavior of lumber relative to gold.
“We could not ask for a better ticker,” notes Gayed. “Historically, when lumber is outperforming gold, that tends to suggest we’re in a risk-on period of lower stock market volatility, on average.”He continues, “When lumber is outperforming gold, the average volatility for the S&P is about 13.5%. When gold outperforms lumber, the average stock market volatility rises to about 19.4%, making for […]
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