Unique Investment Approach Seeks to Combine Global Asset Allocation, Cash, and High Conviction
The Fund seeks to track the Sterling Tactical Rotation Index, a high conviction, global tactical index that employs an equal weighted strategic rotation model, trading between six broad-based asset classes: U.S. stocks, International stocks, REITs, Bonds, Commodities, and Cash.
Sterling Global Strategies, a Carlsbad, CA investment advisor, will serve as the Fund’s Sub-advisor. The Sterling team has extensive experience in building, managing, and developing absolute return strategies that seek to produce positive returns in any market cycle. The Sterling Tactical Rotation Index was launched in June 2010 and is independently calculated by NYSE under the symbol STLGSTRR.
ALPS, a specialist in satellite and alternative investment strategies including MLPs, REITs, Commodities, and Listed Private Equity, will serve as the Fund’s Advisor.
“Most tactical strategies tend to be low conviction or narrow in scope,” says Tom Carter*, President of ALPS Advisors, “meaning they seek to offer either downside mitigation or upside potential. The ALPS Sterling ETF Tactical Rotation Fund has been designed to pursue both. We were impressed with Sterling’s track record and are excited to be able to offer their tactical rotation index as a mutual fund.”
In practice, the Fund will apply Sterling’s Tactical Rotation Index investment methodology to tactically select the top two asset classes each month. Once the asset classes are determined, the portfolio is constructed by investing in the corresponding class of exchange traded funds. The Fund can invest 100% of assets in cash during broad market declines.
The Fund will seek investment results that correspond generally to the performance of the Sterling Tactical Rotation Index.
The ALPS Sterling ETF Tactical Rotation Fund will be available in three classes—A Shares (ETRAX), C Shares (ETRCX), and I Shares (ETRIX).