Tuttle launches S&P 500 sector rotation ETF

Tuttle Capital Management has launched a new actively managed ETF that seeks to generate alpha over US large-cap equity benchmarks through a sector rotation strategy.The Revere Sector Opportunity ETF (RSPY US) has been listed on NYSE Arca and comes with an expense ratio of 1.15%.

Source: Tuttle launches S&P 500 sector rotation ETF

The fund, which is sub-advised by Revere Wealth Management, invests in a mix of liquid ETFs targeting the 11 different GICS-defined sectors of the S&P 500: communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, and utilities.

The fund’s assets are allocated among the sector ETFs based on Revere’s proprietary sector selection model which incorporates macroeconomic, financial, and market data to determine whether to underweight, overweight, or maintain the same S&P 500 index weight for each sector.

The portfolio’s final allocation is subject to risk and diversification constraints which include requiring the fund to invest in at least five of the eleven sectors at all times.

Matthew Tuttle, CEO and CIO of Tuttle Capital Management, said: “As major US stock indices flirt with all-time highs, we feel there has never been a more appropriate time to utilize an active approach to manage domestic equity exposure. We are thrilled to work with the team at Revere to introduce this exclusive strategy to a broader investor base.”

Scott Fullman, Managing Director at Revere Wealth Management, added: “Using our proprietary process overlaid across the eleven sectors of the S&P 500, we identify expected leadership through technical and macro analysis as well as options intelligence. Many clients at Revere have been using this approach as their core US equity allocation for years. The opportunity to offer this time-tested strategy inside the tax-advantaged, liquid, and familiar wrapper of an ETF is an exciting evolution of Revere’s commitment to its present and future clients to provide best-in-class investment solutions.”

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