Adaptive Core ETF (RULE) seeks to provide adaptive exposure across multiple asset classes through a rules-based approach that adjusts allocations based on market conditions. This tactical allocation strategy measures relative strength and momentum signals to dynamically shift between equities, fixed income, and alternative investments.

How It Works

RULE employs an actively managed, quantitative approach that uses proprietary algorithms to assess market environments and adjust portfolio allocations accordingly. The fund can invest across domestic and international equities, bonds, commodities, and REITs based on momentum and trend-following signals. Rebalancing occurs monthly or when significant market regime changes are detected. Holdings composition varies significantly based on market conditions, potentially ranging from 0-100% in any single asset class.

Key Features

  • Dynamic allocation model that can shift from 100% defensive to 100% growth assets based on quantitative market signals
  • Recently launched fund with zero expense ratio during promotional period, though permanent fee structure remains undisclosed
  • Tactical approach designed to reduce drawdowns during market stress while capturing upside during favorable conditions

Risks

  • This ETF can lose value if its quantitative models misread market signals, potentially being defensively positioned during rallies or aggressive during downturns
  • Model risk exists where algorithmic decisions may underperform simple buy-and-hold strategies, especially during volatile or sideways markets
  • As a new fund with minimal assets, liquidity constraints and tracking difficulties may result in wider bid-ask spreads and execution challenges

Who Should Own This

Best suited for tactical investors with 1-3 year time horizons seeking active risk management over passive exposure. High risk tolerance required due to strategy uncertainty and frequent allocation changes. Appropriate as satellite holding (5-15% allocation) for investors wanting systematic trend-following without manual market timing decisions.

RULE chart by TradingView