Portfolio Allocation - Crypto ETF Quintile Model
ETF Implimentation
iBIT (e.g., Bitcoin ETF)
Rationale: A strong foundational asset due to its market dominance, historical performance and the creator of DeFi – decentralized finance.
BSOL (e.g., Solana ETF)
Rationale: Solana’s has a growing importance in the blockchain space, supported by technological advantages and a vibrant ecosystem.
ETHA (e.g., Ethereum ETF)
Rationale: Ethereum is a leading platform for decentralized applications (dApps) and smart contracts on the blockchain, making it a vital part of any crypto portfolio.
Dime (eg., Cardano, Solana, Atom, Polkadot, Avalanche, Near, Aptos)
Rationale: Top 10 Coins without BTC and ETH, broadens access in the portfolio, while helping to mitigate the volatility associated with the top 2 cryptocurrencies.
XRPC (eg., Ripple XRP)
Rationale: XRP serves as a “bridge currency” for fast, low-cost international transactions. If XRP is widely adopted by financial institutions for cross- border payments it could have a big impact.
Sattelite Thematic Equity Models
Elev8 Alpha Model Portfolio Weightings
This is the reference model portfolio that replicates the S&P 500 Index sector weights.
It is a base-line portfolio for allocation decisions at ETFsector.
Elev8 Vol Model Portfolio Weightings
The Elev8 Sector Rotation Model seeks to outperform the S&P 500 using an 8 Sector allocation framework to differentiate from the benchmark while ensuring a well-diversified equity portfolio. The model selects 8 of the 11 S&P 500 GICS Sectors to allocate to each month and 3 it will avoid. It uses the Cap. from the 3 short or “zero” allocations to create active weight long positions in the 8 selected sectors.
The Elev8 Sector Rotation Model generates its position sizes using a multi-factor, trend-following process that encompasses security level and macro level inputs. It seeks to align with the strongest long-term trends in the US equity market while providing a discretionary framework for tactical allocations to take advantage of near-term opportunities or to facilitate appropriate hedging.
Volatility Equal Weight Sector Model
The ALPS Equal Sector Weight ETF (EQL) seeks investment results that replicate as closely as possible, before fees and expenses, the performance of the NYSE Equal Sector Weight Index (NYXLEW)
The ALPS Equal Sector Weight ETF (EQL) is an ETF of ETFs that delivers exposure to the US Large Cap Equity market by investing equal proportions in 11 Select Sector SPDRs and rebalances quarterly.
EQL delivers moderate, yet meaningful exposure to every sector of the market.
Sector Name | Elev8 Alpha Model | Elev8 Vol Model | Volatility Equal Weight Model | |
|---|---|---|---|---|
MAT | Materials | 1.74% | 5.47% | 9.07% |
COMM | Communication Services | 9.88% | 13.17% | 9.42% |
ENE | Energy | 2.88% | 5.52% | 8.51% |
FIN | Financials | 13.23% | — | 9.28% |
IND | Industrials | 8.16% | — | 9.25% |
TECH | Information Technology | 34.60% | 39.38% | 9.40% |
CONS | Consumer Staples | 4.91% | 6.26% | 8.92% |
RE | Real Estate | 1.90% | 5.63% | 8.84% |
UTIL | Utilities | 2.40% | 6.34% | 9.02% |
HC | Healthcare | 10.05% | 18.23% | 9.07% |
COND | Consumer Discretionary | 10.24% | — | 9.09% |