Allocation Strategies

Asset Allocation Strategies For Those Who Wonder: “Isn’t there a smarter way?”

FormulaFolios Allocation Strategies were designed to take the speculation and guesswork out of asset allocation. Rather than adhere to frustrating and conventional portfolios that have asset classes that are highly correlated to one another, we have built risk managed allocations which consist of multi-factored models that have little to no correlation to one another.

The end result: Turnkey portfolios that offer real diversification, smoother returns, and smarter risk management. All while correlating very little to traditional benchmarks (which means our results aren’t entirely impacted by market moves or economic conditions).

Allocation Strategies

Aggressive
Long term growth investment objective. 70% traditional equities, 30% total return growth.
Moderate Aggressive
Long term growth investment objective. 56% traditional equities, 24% total return growth, 20% income.
Moderate
The Moderate is the flagship allocation strategy, utilizing some components of all sub-models. It is invested 36% traditional equities, 24% total return growth, and 40% Income 50.
Moderate Conservative
The second most popular allocation strategy. It is invested 24% traditional equities, 16% total return growth, and 60% Income 50.
Conservative
This allocation is invested 10% traditional equities, 10% total return growth, and 80% Income 50.
Income 50
Income 50 uses two underlying models to invest in income ETFs with a total return objective. It is slightly more aggressive than the Income 70.
Income 30
Income 50 uses two underlying models to invest in income ETFs with a total return objective. It is slightly more conservative than the Income 50.

Individual Strategies

Large Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 20 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Mid Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Small Cap
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
International
A quantitatively managed, low turnover portfolio of individual equities. Holds up to 40 individual securities and can be heavily invested in cash at times. Fundamental and global macro factors determine composition and position size.
Market Rotation
A tactical allocation portfolio of exchange traded funds (ETFs).
FF 2.0
FF2.0 is an aggressive, market neutral portfolio of ETF's. It is designed to capitalize on both up and down moves in broad US stock markets.