Innealta Capital

The Tactical ETF Portfolios

New Solutions for a New Investment Landscape

The SelectOne Tactical ETF Solutions move money between and within certain asset classes depending upon current risk-adjusted returns for the various components of the portfolio strategy you select.


The SelectOne platform offers 3 distinct Tactical ETF Portfolios through Innealta Capital.
Risk Based
  • Five diversified strategic portfolios for varying risk tolerances
  • Equity exposure within each portfolio can deviate by +/- 20% relative to the strategic asset allocation target
    • Sector Rotation
  • Tactically alters equity exposure across the 10 industry sectors based upon our quantitative framework
  • 10 S&P GICS Sectors
    • Country Rotation
  • Tactically alters equity exposure among 20 international markets based upon our quantitative framework
  • 20 International Economies (Developed & Emerging)

    • The SelectOne Tactical ETF Risk Based Portfolios

    Investment Process:
  • Develop Strategic Asset Allocation: Three diversified strategic portfolios are developed using a blend of asset allocation technologies, including mean variance optimization within the resampling and Black-Litterman frameworks.

  • ETF Selection: ETFs are selected for each asset class in the strategic model.

  • Apply Tactical Asset Allocation: A tactical overlay to the strategic ETF-based portfolios. Bullish or bearish signals generated by the quantitative model are used to adjust equity exposure within each portfolio by +/- 20% relative to the longterm strategic asset allocation target in order to try to capture enhanced riskadjusted returns.

    • The SelectOne Tactical ETF Sector Rotation Portfolio

    The portfolio aims to generate high total return with strict risk controls by consistently investing in those sectors of the U.S. economy that have strong risk-adjusted performance potential. The portfolio is run by a multifactor model that evaluates the risk/reward profile of each sector in the portfolio on a daily basis, responding to market movements as they affect various sectors and industries. The strategy is binary: the portfolio is either entirely in or out of a sector at any given time. Each sector is modeled independently and its risk/reward profile is compared to an equal investment in an intermediate-term U.S. Treasury. If the expected return per unit of risk for the sector is more favorable than that of an intermediate-term U.S. Treasury, the portfolio will invest in the sector, and vice versa. When the quantitative modeling is bearish on a sector, that sector's 10% capital is deployed to the fixed income portfolio, which is actively managed in terms of duration and credit quality. Sectors are equally weighted.


    Potential ETFs




    The SelectOne Tactical ETF Country Rotation Portfolio

    The portfolio aims to generate high total return with strict risk controls by consistently investing in countries with strong risk-adjusted performance potential. The portfolio is run by a multifactor model that evaluates the risk/reward profile of each country in the portfolio on a daily basis, responding to dynamically changing global economies. The strategy is binary: the portfolio is either entirely in or out of a country at any given time. Each country is modeled independently and its risk/reward profile is compared to an equal investment in an intermediate-term U.S. Treasury. If the expected return per unit of risk of a country is more favorable than that of an intermediate-term U.S. Treasury, the portfolio will invest in the country, and vice versa. When the quantitative modeling is bearish on a country, that country's 5% capital is deployed to the fixed income portfolio, which is actively managed in terms of duration and credit quality. Countries are equally weighted.


    Potential ETFs


    Innealta Capital
    32392 Coast Highway, Suite 260
    Laguna Beach, CA 92651
    Phone: 888-994-6827
    www.innealtaportfolioadvisors.com