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LFEQ - gimmicky ETF (with the possibility of downside protection)

Kind of interesting idea, anyway. Van Eck offers this product (LFEQ) which supposedly uses a proprietary model to determine the best allocation split between 2 investments: 1) an S&P 500 ETF and 2) US Treasuries. That's it. Just 2 investments. The ER is .59%.

Supposedly the model gives daily trades signals on whether to allocate 20%, 40%, 60%, 80% or 100% to equities. Which begs the question....if stocks go into a tailspin, will their model get out of equities in time?

This ETF has total Net Assets of only $9.8M. If only such products worked as intended/advertised. I find they rarely do.

Comments

  • We do not need to invest in LFEQ, but we can follow its allocation to determine market signal. Currently, the fund is 100% in SPY.
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