The Toews Agility Shares Managed Risk ETF (MRSK) seeks to provide capital appreciation while managing downside risk through a dynamic allocation strategy. This actively managed fund adjusts exposure between equity and fixed-income securities based on market conditions and volatility indicators.
How It Works
MRSK employs an active, risk-managed approach that dynamically shifts allocations between stocks and bonds based on proprietary risk models and market volatility signals. The fund can range from 0-100% equity exposure, increasing stock allocation during favorable market conditions and reducing it during periods of heightened risk. Portfolio adjustments occur regularly based on quantitative indicators, with the goal of participating in market upside while limiting severe drawdowns during market stress.
Key Features
- Dynamic risk management system that can shift from 100% stocks to 100% bonds based on market conditions
- Recently launched in April 2023, offering newer risk-managed strategy approach with active oversight
- Zero expense ratio structure provides cost-effective access to professional risk management and tactical allocation
Risks
- This ETF can lose value if the risk management models fail to accurately predict market downturns or shift allocations at inappropriate times
- Active management decisions may underperform simple buy-and-hold strategies during sustained bull markets due to reduced equity exposure
- As a new fund with limited assets, liquidity could be constrained and tracking of the intended strategy may be inconsistent initially
Who Should Own This
Best suited for moderate-risk investors with 3-5 year time horizons seeking equity-like returns with downside protection. Appropriate as a satellite holding (10-20% allocation) for those wanting tactical risk management without timing markets themselves. Appeals to investors approaching retirement who want growth potential but cannot afford major portfolio drawdowns.