Investment Philosophy and Methodology of the Day Hagan ETFs

The Day Hagan/Ned Davis Research Smart Sector Series of ETFs is underpinned by an investment philosophy and methodology that aims to provide investors with a strategic approach to sector-based investing and fixed-income exposure. This philosophy revolves around combining active management, rigorous research, risk management, and a commitment to delivering value to investors. Here’s a deeper dive into the investment philosophy and methodology that drive the Day Hagan/Ned Davis Research Smart Sector Series of ETFs:

1. Active Management for Optimal Returns: At the core of the investment philosophy is the belief that markets are dynamic and ever-changing. The Day Hagan/Ned Davis Research Smart Sector Series of ETFs embraces an active approach to investment management, allowing for dynamic allocation among sectors and fixed-income categories. This agility enables the Day Hagan/Ned Davis Research Smart Sector Series of ETFs to adapt to changing market conditions, potentially optimizing returns in favorable and challenging market environments.

2. Proprietary Research and Data-Driven Decisions: The investment methodology draws from the partnership between Day Hagan Asset Management and Ned Davis Research. This collaboration leverages proprietary models and a comprehensive suite of indicators to drive investment decisions. These indicators encompass a wide range of factors, including price-based, economic, fundamental, and behavioral indicators. The aim is to objectively assess market conditions and sector trends to inform allocation decisions.

3. Rigorous Risk Management: The Day Hagan/Ned Davis Research Smart Sector Series of ETFs prioritizes risk management as a fundamental aspect of its methodology. The strategies are designed to include risk models that evaluate potential downside risk and reward. During periods of heightened market volatility or increased risk, the ETFs have the ability to reduce exposure to sectors or fixed income categories or even hold cash equivalents. This risk-managed approach seeks to provide a level of downside hedging that traditional ETFs may lack.

4. Tailored Allocation for Diversification: Each ETF within the Day Hagan/Ned Davis Research Smart Sector Series has a specific investment focus, whether it’s sector rotation, fixed income exposure, or international equities. The allocation within these ETFs is guided by specialized models that take into consideration sector-specific indicators, macroeconomic factors, and regional trends. This tailored approach allows for diversification across sectors or fixed-income categories, which can contribute to a balanced portfolio.

5. Transparency and Education: A cornerstone of the Day Hagan/Ned Davis Research Smart Sector Series’ philosophy is investor education and transparency. The Day Hagan/Ned Davis Research Smart Sector Series of ETFs aims to provide investors with not only performance but also research-backed insights and educational resources. By offering in-depth analyses and reports, investors are equipped with the information needed to understand the rationale behind allocation decisions and the overall strategy.

6. Long-Term Value Creation: The investment philosophy extends beyond short-term gains, focusing on long-term value creation for investors. By actively managing allocations based on data-driven indicators, the Day Hagan/Ned Davis Research Smart Sector Series of ETFs aims to capture opportunities while minimizing risks, ultimately working towards delivering sustainable returns over time.

7. Disciplined Execution: The investment methodology emphasizes the disciplined execution of strategies. Sector allocations are typically rebalanced monthly to reflect changing market conditions and sector trends. The ETFs of the Day Hagan/Ned Davis Research Smart Sector Series also have the flexibility to make intra-month trades based on significant market shifts, ensuring that the portfolios remain aligned with the overarching investment philosophy.

In conclusion, the investment philosophy and methodology of the Day Hagan/Ned Davis Research Smart Sector Series of ETFs revolve around active management, proprietary research, risk management, tailored allocation, transparency, long-term value creation, and disciplined execution. This approach seeks to provide investors with a strategic and informed way to access the potential benefits of sector-based investing and fixed-income exposure, all within a framework rooted in research and designed for the long-term success of investors.