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Balance

Balanced ETF portfolio with low risk
Strategy pack
Low risk

Strategy's performance from 2008 to 2018

Estimated Gains
20 % annually
Min. Amount
1,000 $
Requests up to
17 Dec
Min. period
1 week
Entry Fee
1 %
Management fee
2 %

Invest in Balance

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Investment Idea Details

Balance is a portfolio of exchange traded funds (ETFs) offering careful diversification between broad-market ETFs, 20-year treasury bonds, consumer industry stocks and volatility index funds (as insurance against stock market declines). The product adjusts shares of each ETF in the portfolio, which allows outperforming S&P500 with a lower risk involved.

Constituent Funds
VOLATILITY FUNDS: VXX, UVXY, TVIX

These funds respond to market's expectations with regard to changes in the S&P500 capitalization within a specific period. When the stock market is in a significant decline (over 10%), this instrument can rally over 50% representing a great hedge against unfavorable events.

XLP

This ETF invests in consumer-staples stocks including grocery producers, household cleaning goods and personal care goods manufacturers, etc. They represent everyday consumer goods, and therefore, the industry is fairly stable and even exhibits features of a safe haven in case of an economic downturn.

SPY

Exchange-traded fund tracking S&P 500 Index performance. The index includes 500 US companies with the highest market capitalization and represents a universal gauge of the US stock market.

AGG

This ETF tracks the US investment-grade bonds index (both corporate and treasury bonds) that demonstrates stable performance during crisis periods and periods of increased stock market volatility.

ETF Portfolio Allocation

Allocation of ETF's in the portfolio may be adjusted once per quarter. Reallocation details are published on the website within a week after the changes take place.

TVIX 0.67 %
UVXY 0.67 %
VXX 0.67 %
XLP 6 %
AGG 6 %
SPY 86 %
Core Asset Rotation
Ротация основного актива

Reallocating the major portion of money into treasury bonds if stock market volatility rises during a turbulent period and putting as much money as possible into broad market ETF during growth periods allows offsetting losses in a declining market and outperforming major US stock market indexes.

OPTIMUM ALLOCATION

A team of algo traders picks promising ETFs, and neural networks compute the best share for each instrument in the portfolio in order to make the portfolio as profitable as possible and as less risky as possible even during crises. For instance, this strategy demonstrated the maximum drawdown of 23% during the last financial meltdown in 2008, while the stock market declined by over 50%.

ALGORITHMIC MANAGEMENT

Based on past performance, the algorithm adjusts percentage ratios of portfolio components twice a year. This management method enables responding to the stock market trend changes within the long-term strategy and limiting risks.

TIME SAVINGS

The Balance portfolio takes away the pain of purchasing instruments, monitoring the market, and managing positions, while freeing investors from the need to dive into the economic theory and spend valuable on studying stock market trends.

Portfolio Returns 2004-2018
Overall Returns
344%
Returns per annum
25%
Maximum Drawdown
-23% (09.10.2007)
Annualized Volatility
12,1
Sortino Ratio
1,27
DISTRIBUTION OF RETURNS BY MONTH
ANNUAL RETURN
Key investment terms and conditions

LEGAL DETAILS

By signing up you accept the public offer terms and conditions. The public offer details any and all legal details. No individual agreement or passport details are required.

REBALANCING CONDITIONS

The portfolio composition may be amended once a quarter or less frequently. One week after amendments are made, the updated portfolio composition is published in the Investments section. Reallocation of portfolio components is done during the first trading hour at NYSE and NASDAQ on Monday.

MISCELLANEOUS TERMS

The management fee is charged weekly as 0.038% of the portfolio value as at the charge date.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Positive performance of this strategy in the past does not guarantee a similar performance in the future.
  • Instruments that are part of the portfolio are issued by Barclays Bank PLC, Invesco Taxable Municipal Bond, Credit Suisse, SPDR, and therefore, the counterparty risk is always present.
  • The risk management as any technical component may be subject to failures and errors, and therefore, if any force-majeure events occur, all current positions may be closed at market prices.

Invest in Balance

Please, log in or sign up to invest in Balance