FDAT

FDAT seeks positive participation in rising US markets by investing in equity and high-yield bond ETFs while attempting to lower return volatility. The fund shifts the portfolio exposure using a proprietary strategy based on macroeconomic trends and ETF-specific momentum indicators. The sub-adviser also analyzes the actions of the Federal Reserve, GDP, and CPI on top of the technical indicators to determine market entry and exit points. Technical indicators such as the stochastic oscillator and the moving average convergence divergence are also considered in selecting individual ETFs. The actively managed portfolio consists of 10 to 15 ETFs during bullish markets. However, the fund takes a defensive position in declining markets resulting in higher allocation to cash and cash equivalents. Depending on the sub-adviser's severity risk assessment of the market, the cash allocation can go up to 75% of the total assets regularly. Total fees should be accounted for when using a fund-of-funds wrapper.