Vigilant Asset Location ETF Vigilant Asset Location ETF Vigilant Asset Location ETF
Offensive STRATEGY
Vigilant asset allocation G4
Distributing
Table of contents
1. Details
The Vigilant Asset Allocation – G4 strategy was developed by Wouter Keller and JW Keuning building upon their research paper titled “Breadth Momentum and Vigilant Asset Allocation (VAA).” This strategy employs a “breadth momentum” test to determine the allocation between risk and safe assets in the portfolio. On average, the strategy allocates 41% to equities, 36% to bonds, and 23% to cash. (Source : https://portfoliodb.co)
In the context of ETFs, distributing means the fund pays out income (e.g., dividends or interest) directly to investors at regular intervals. This provides a cash flow that can be used or reinvested elsewhere. In contrast, accumulating ETFs reinvest this income back into the fund, increasing its overall value and compounding growth. The choice between the two depends on whether an investor prioritizes income or capital growth.
2. Performance
Source : https://portfoliodb.co
3. Instructions
Read
Read the result in 4. Strategy Results (by clicking here).
This is the ETF selected from a hand-picked list of ETFs (see the list by clicking here) using the mathematical formula and which would be the investment offering the best return today.
Invest
Invest 100% of your investment in the ETF indicated in 4. Strategy Results (click here) via a trading platform.
Maintain or Change
If you have already invested in this ETF the previous month and the ETF is still recommended, maintain your position.
If the ETF indicated in point 2 has changed, sell your position and reinvest the entire amount in the ETF indicated in point 2.
Restart
Each month, start again the process
4. Strategy Results
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5. Recommended ETFs
The ETFs used in this strategy are made up of offensive and defensive ETFs composed of either stocks or bonds in several geographical zones around the world, in order to diversify your investment as much as possible and thus limit risk.
Offensive ETFs
SPDR S&P 500 ETF Trust – SPY
iShares MSCI EAFE ETF – EFA
iShares MSCI Emerging Markets ETF – EEM
iShares Core US Aggregate Bond ETF – AGG
Defensive ETFs
iShares iBoxx $ Inv Grade Corporate Bond ETF – LQD
iShares 7-10 Year Treasury Bond ETF – IEF
SPDR Bloomberg 1-3 Month T-Bill ETF – BIL
6. Returns & Drawdowns
6.1 Returns
Source : https://portfoliodb.co
6.2 Rolling Returns
Source : https://portfoliodb.co
6.3 Drawdowns
Source : https://portfoliodb.co
6.4 1-Year Rolling Returns
Source : https://portfoliodb.co
6.5 3-Year Rolling Returns
Source : https://portfoliodb.co
6.6 5-Year Rolling Returns
Source : https://portfoliodb.co
6.7 10-Year Rolling Returns
Source : https://portfoliodb.co
7. Risks
Investing Disclaimer
We want to remind you that all investments carry inherent risks, and it is important to make informed decisions. While we provide a range of investment strategies, we cannot guarantee any profits or take responsibility for potential losses incurred while using any of our strategies.
Financial markets are volatile and unpredictable, and past performance does not guarantee future results. Before making any investment decision, we encourage you to consult a financial advisor or perform thorough research to ensure the selected strategy aligns with your personal financial goals.
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