The Ned Davis Research 360 Dynamic Allocation ETF (NDAA) seeks to provide total return through a dynamic multi-asset allocation strategy that adjusts exposure across stocks, bonds, and alternative investments based on market conditions and economic indicators.
How It Works
NDAA employs an actively managed, tactical asset allocation approach using Ned Davis Research's proprietary quantitative models and market timing indicators. The fund dynamically shifts allocations between equity, fixed income, commodities, and cash based on technical analysis, sentiment indicators, and macroeconomic data. Portfolio adjustments occur regularly as market conditions change, with the flexibility to range from conservative (high cash/bonds) to aggressive (high equity exposure) positioning.
Key Features
- Leverages Ned Davis Research's 50+ years of market timing expertise and proprietary quantitative models for tactical allocation decisions
- Dynamic flexibility to shift from 0-100% in any asset class, providing downside protection during market stress periods
- Recently launched in October 2024, offering institutional-quality tactical allocation strategy previously available only to high-net-worth clients
Risks
- This ETF can lose value if the tactical allocation models misread market signals, potentially being defensively positioned during rallies or aggressive during downturns
- Active management decisions may underperform simple buy-and-hold strategies, especially during sustained bull markets when defensive positioning hurts returns
- Multi-asset exposure means losses can occur across stocks, bonds, and commodities simultaneously during broad financial market stress periods
Who Should Own This
Best suited for moderate-to-conservative investors with 3-10 year time horizons seeking professional tactical allocation management as a core holding (20-40% of portfolio). Medium risk tolerance required due to active management uncertainty. Ideal for investors wanting downside protection but lacking expertise in market timing.