From Yahoo Finance: 2025-03-31 16:15:00

Katie Stockton, Founder of Fairlead Strategies, discussed the three-year anniversary of her ETF TACK with NYSE TV. The fund focuses on sector rotation with limited drawdown and lower beta than S&P 500. Stockton emphasized the ETF’s success in managing risk and performance in volatile markets.

Stockton highlighted TACK’s strategy of using sector rotation within the ETF wrapper to limit tax implications and leverage long-term momentum. The fund also employs asset allocation with short-term treasuries, long-term treasuries, and gold exposure to manage drawdowns and diversify. TACK is positioned as a core long-term holding in portfolios.

Stockton noted the increased market volatility in Q1 and signaled a shift in momentum to a more neutral stance. She anticipates choppy market action for the rest of the year. Stockton recommended TACK as a long-term investment option for viewers to consider given its historical performance and risk management capabilities.

Looking ahead, Stockton aims for TACK to continue delivering strong returns while minimizing drawdowns in volatile markets. She highlighted the fund’s ability to adjust exposure from one sector to eight sectors based on market conditions, providing a reliable investment strategy for investors. Stockton also addressed client concerns regarding the current market environment and the potential for a relief rally.

In response to questions about the duration of the market downturn, Stockton indicated that indicators suggest a potentially higher volatility environment lasting around nine months. She emphasized that TACK is designed to perform well in such conditions and provide investors with a reliable option during market fluctuations.

Read more: Why sector rotation ETFs are beating traditional portfolios, according to a fund manager