Introduction


Discover the Advantages of Combining ETFs with Carefully Crafted Quantitative Strategies


 

Introduction: Discover the Investment Breakthrough offered by the ETFOptimize Quantitative Strategies



Now you can take advantage of a modern, systematic, and affordable approach to investing—a quantitative method that removes emotion, subconscious bias, and the losses that result—providing you with consistent gains each year, regardless of the direction of the overall stock market.

The ETFOptimize Premium Investment Strategies have never experienced a money-losing year – collectively racking up a phenomenal record of more than 100 consecutive profitable years. Yes – that's more than 100 winning years for the six models in our lineup at the time of this writing (last updated in April 2022).

To accomplish this feat, ETFOptimize combines 1) state-of-the-art hardware and software technology, the 2) highest quality point-in-time (PIT) databases, and 3) innovative, data-driven programming based on our strategy designer's 50 years of combined professional investment experience—with rules-based strategies developed and refined over more than 20 years (we launched the first quantitative strategies available via the internet in 1998). Then we convert these advantages into easy-to-use trade instructions provided to you each weekend, with trades occurring every 3-4 months, on average. The result is a set of ETF-based, systematic investment portfolios with performance charts that steadily climb from the lower-left to the upper right – providing you with consistent and robust performance, low drawdowns, and collectively, more than 100 consecutive years of gains (i.e. - LIVE - yes, LIVE Results) from our strategy collection.

We exclusively use Exchange Traded Funds (ETFs) combined with our carefully crafted, rules-based investment strategies developed, refined, and offered to the public since 1998.

It's a well-known fact that low-cost, index-based ETFs have become the go-to investment vehicle throughout the world—for many good reasons. In the US alone, ETFs are attracting more than a trillion dollars in new capital inflows each year as investors move away from mutual funds and individual stocks. We've found that the combination of ETFs and data-driven investment signals provides the optimum approach for generating steady investment performance, year after profitable year.

Rules-based, 'mechanical' investment strategies have many advantages over discretionary investing (which is based on reflexive, emotional human judgments). Discretionary investors often believe their judgment about an investment opportunity is superior to other investors and other investment approaches.

This belief greatly appeals to the human ego, and all investors are prone to subconscious human emotional traps, heuristic errors, and biases. Most investors don't even realize they are making these errors until losses occur and after-the-fact regret sets in. Still, investors continue to believe their subjective judgments are superior to the objective decisions made by a computer. This dynamic fuels the same human-versus-computer controversy that engulfed the chess world in 1997, when IBM's Deep Blue computer beat the human world chess champion. However, in contrast to chess, today's computer-human investment matchup has trillions of dollars on the line.

ETFOptimize specializes in building and operating quantitative investment systems, in which mathematical algorithms and formulas determine the Buy Rules, Sell Rules, and Ranking System that drives exposure to the market and selections of multiple investment portfolios. These algorithms reside in a computer program on powerful, state-of-the-art machines – but that's all transparent to you. You get your choice of multiple investment strategies with varying levels of performance and risk—or our most popular product, the ULTIMATE Strategy which is a combination of those uncorrelated, systematic models.

The ETFOptimize Premium Strategies provide you with a low-cost way to access consistently high annualized returns (average AR of about 30% since inception in mid-2007) and Minimal Declines (avg. Maximum Drawdown of only about -8% since inception).

We combine six models (holding 5-10 ETFs in total), with each model using a different set of algorithms that drive risk-assessment and ETF selection in our best, most popular model – the ULTIMATE 6-Model (5-10 ETF) COMBO Strategy. This results in excellent diversification of both risk assessment and ETFs, and provides investors with a very robust, smooth and consistent equity curve, as shown by this chart of the model's performance (top window) and maximum drawdowns (bottom portion):

 

ULTIMATE 6-Model (9 ETF) COMBO Strategy
ULTIMATE 6-Model (9 ETF) COMBO Strategy

 

Notice that one of the best features of this combination strategy, which combines uncorrelated risk-aversion approaches from six different models to determine exposure to the market and selection of the optimum ETF for conditions.

The articles in the Introduction Section of our site can provide you with more detail on how our unique approach utilizes a combination of rules-based algorithms and ETFs to achieve consistently profitable, robust returns regardless of the market environment. Our models achieve steady gains whether market conditions are bullish, bearish, sideways, or turbulentnever experiencing a losing year since inceptioncollectively, more than 100 consecutive profitable years. 

The ETFOptimize Premium Strategies are designed with a primary objective of achieving maximum long-term performance to attain life's major financial objectives of saving for college, saving for a home, saving for retirement—or whatever financial need you have in your future. With this long-term objective, our strategies are designed first and foremost to avoid significant portfolio losses, which is the singular most malign factor that can prevent you from attaining your long-term financial goals.

There will likely be temporary periods when our models will underperform their benchmarks or the S&P 500 index. These periods of temporary underperformance usually only occur when the market is going through a span of unusual conditions—such as the artificially created gains following the Covid Crash in March 2020, when the Fed used Quantitative Easing to prop up equity prices for more than 18 months.

Our systems are designed to identify periods of increased risk from a variety of factors, and if appropriate, move the model's bullish ETF positions to defensive ETFs (bond or cash-proxy ETFs) to mitigate that risk. However, during periods when the Federal Reserve is pumping funds into the financial system to push equity prices higher and stimulate the economy (i.e., the 'wealth effect'), traditional risks can be rendered mute, and the bull market will continue higher.

 

Our Products and Services

Discover why our unique, scientifically proven investment approaches outperform other methods—with far lower volatility, lower drawdowns, less worry, and minimal effort. We have more experience in offereing this service than any other firm. With our first website in 1998, we presented the first quantitative investment strategies available to the public on the internet. ETFOptimize provides services to both 1) Individual Investors and 2) Professional Money Managers, mutual fund managers, registered investment advisors, and other investment professionals—or individuals with more than $10 million.

Our models are available in three low-cost forms:

1) Low-cost monthly, quarterly, or annual subscriptions for individual investors;

2) Custom versions of our strategies for professionals with greater liquidity and higher returns than the individual-investor versions; and

3) Fully Customized Quantitative Models designed from the ground up to meet the special needs of investment professionals and fund managers; or

4) Project Consultation to assist investment banks and brokers with the development of turnkey, rules-based investment strategies.

Learn more about Quantitative ETF Investing by selecting another Introductory Article from the list of content below – or if you’re ready to get started with our proven approach to ETF selection, you can review our suite of Premium Investment Strategies and choose a low-cost model—or combination of models—that's right for you. Professionals can learn more here. Subscribe with confidence because you'll get a 14-day Risk-Free Trial and after your trial your subscription is backed by a 60-day, money-back Satisfaction Guarantee.

 

View our Premium Investment Strategies

or Continue to the Next Introductory Article from the list below to learn more...

 


 

The ETFOptimize Advantage

The ETFOptimize Advantage

Take advantage of an honest-to-goodness breakthrough in the world of investing – a legitimate paradigm shift, made possible by the development of an innovative investment approach. Using state-of-the-art technological resources, ETFOptimize provides self-managed investors with a system that successfully overcomes the challenges of volatile financial markets.  (continue reading this article...)

 



 

The Benefits of Systematic Investing

A systematic (also called 'quantitative' or 'rules-based') investment strategy can provide you with many advantages over the traditional, discretionary approach to selecting investments. This article will delve into the reasons why today, investors from all walks of life are embracing systematic investing, and why ETFOptimize is dedicated to...  (continue reading this article...)

 




Why ETFs are Today's Go-To Investment of Choice

Exchange Traded Funds (ETFs) are similar to mutual funds, but they trade on exchanges throughout the day just like a stock. However, unlike most mutual funds that depend on fund manager's discretionary stock-picking capabilities, ETFs are based on well-established stock-market indices such as the well-known Dow Industrial Average, the S&P 500 index, the S&P Technology Sector, or the Russell 2000 small-cap stock index, which provides instantly diversified – yet focused selection... (continue reading this article...)

 




A Historic, Generational Shift

Most individual investors remain unaware that the investment world is in the midst of a generational shift of herculean proportions – a change that is no less than the most massive, most rapid transfer of wealth in human history. Recent decades are witness to the fast-paced abandonment of traditional, active investing using...  (continue reading this article...)

 




LEARN HOW SYSTEMATIC ETF INVESTING CAN BENEFIT YOU

ETFOptimize offers a variety of high-performance, ETF-based Investment Strategies, designed to meet the investment objectives and risk tolerances of a broad spectrum of investors. Each strategy is a discrete product to keep your cost low (starting at just $9). Investors can choose the strategy that is most appropriate for their financial objectives and risk tolerance, or combine several strategies to harvest uncorrelated profits.

We also offer our ULTIMATE 6-Model (9 ETF) Combo Strategy so you can take advantage of even greater diversification, resulting in lower drawdowns—with the same high performance.

Regardless of the model you choose, the objective of each Premium Strategy is to achieve consistent, exceptional annual returns with minimal drawdowns (peak-to-trough declines) so you can be confident that your hard-earned nest egg is steadily growing every year (regardless of the performance of the overall stock market).


FAST FACTS:

ETFOptimize makes investing with ETFs simple and exceptionally profitable. Our model portfolios feature minimal drawdowns, only a handful of trades per year, and a high percentage of winning trades. Our subscription model-strategies achieve steady, robust compound annual growth of between 15%–40% per year, depending on the model selected. By trading just a few times each year and rotating funds to the optimal ETF at the optimal time, you get dramatically improved returns over discretionary stock picking or a passive, buy-and-hold investment approach. The average annualized return is about 30% per year.

Other than our ULTIMATE Combo Strategy, which holds 6-10 ETFs, our models hold 1-4 ETF positions and trade with an average of 3.85 months (in an range of 1.6 to 7.2 months) between transactions (depending on the strategy).

Because they hold the shares of dozens, hundreds, or even thousands of individual stocks, Exchange Traded Funds (ETFs) are inherently well-diversified from individual-company risk, and there is no reason to own more than a few broadly based ETFs. This is especially true if you have a quantitative strategy, such as provided by ETFOptimize, that always rotates to the optimum ETF at any given time. Our models consistently adapt to economic conditions and change the ETFs held in the portfolio to achieve the highest return with least amount of drawdown.

Each weekend, all of our strategies or rebalanced and we send subscribers straightforward update notices with appropriate trade signals for the model to which they have subscribed. All trades are executed using the average price on the next trading day, and our entry and exit prices will be the same as yours. Each strategy includes commissions and reinvested dividends in the performance calculations. In this way, subscriber's returns closely match our model's performance, and the historical returns you see featured on the ETFOptimize website are always reliable and accurate.

Get started today by selecting an ETFOptimize Investment Strategy that's perfect for your needs!


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