EZ-Indexes: Tactical and Tax Efficient
Ideal for Section 351 Exchange Conversions
EZ-Index Family Offering Overview
The chart's Efficient Frontier marks the performance limit of Modern Portfolio Theory's "buy-and-hold / diversify-and-rebalance" methodology. Breaking through the Efficient Frontier to the upper left of the chart requires two things; (1) employing modern signal processing methods to optimally reduce market noise and better reveal the momentum signal to make better momentum leader selections, and (2) avoid risk by "knowing when to get out of Dodge" as a Bear Market approaches. See video, below-right.
The risk/return performance of the very diverse EZ-Index family is tabulated above and plotted on the left alongside a reference set of asset class funds and industry-standard benchmark portfolios to provide performance context. As we work toward launching other tracking ETFs for the these EZ-Indexes we will prioritize future launches according to the expressed interest received, particularly if launched as a Section 351 Exchange Conversion, which could have significant tax deferral benefits. Contact us!
Bull Market Leaders and Bear Market Exits
What is a Section 351 Exchange Conversion?
A Section 351 Exchange Conversion ETF is simply a newly-launched ETF that accepts appreciated securities from one or more investors in exchange for ETF shares and defers any capital gains tax at that time if certain requirements are met. This method is often used to move concentrated company stock or highly appreciated portfolios into a more diversified ETF without creating an immediate capital gains tax bill. Funds inside the ETF wrapper, are traded and rebalanced tax-efficiently using ETF in-kind exchange principals. This Michael Kitces article provides additional information: Using Section 351 Exchanges To Tax-Efficiently Reallocate Portfolios With Embedded Gains. Interested? Contact Us!
Index Links and Brief Descriptions
1. EZ-BS: Bonds Shaken not Stirred
During Bull Markets, the EZ-BS Bonds Shaken not Stirred Index selects a portfolio of five ETFs comprising the Momentum Leaders of its five underlying strategies: Bonds SPDR, Bonds iShares, Bonds First Trust, Bonds Invesco, and Bonds Vanguard. During Bear Markets the Index employs Bear Market Strategies to select a set of defensive Momentum Leaders from among a more conservative set of bonds and treasuries.
2. EZ-DD: Low Drawdown Momentum
During Bull Markets, the EZ-DD Low Drawdown Momentum Index selects a portfolio of 10 ETFs comprising the Momentum Leaders of its 10 underlying strategies: Bonds SPDR, Bonds iShares, Bonds First Trust, Bonds Invesco, Bonds Vanguard, SPY Defender, QQQ Defender, Global Defender, Dow Defender, and Russell 1K Defender. During Bear Markets the Index employs a set of Bear Market Strategies to select a set of defensive Momentum Leaders from among bonds, treasuries, gold, and others.
3. EZ-AW: All Weather 60/40
During Bull Markets, the EZ-AW All Weather 60/40 Index selects a portfolio of 10 ETFs comprising the Momentum Leaders of its 10 underlying strategies: Bonds SPDR, Bonds iShares, Bonds First Trust, Bonds Invesco,, Global Defense, Sectors iShares, Sectors SPDR-9, AI Tech Funds, AI Robotic Funds, and Main Street Momentum. During Bear markets the Index employs Bear Market Strategies to select a set of defensive Momentum Leaders from among bonds, treasuries, gold, and others.
4. EZ-AL: Alternatives Momentum
During Bull Markets, the EZ-AL Alternatives Momentum Index selects a portfolio of six ETFs comprising the Momentum Leaders of its six underlying strategies: Commodities Alts, Global Region Alts, Metals Clean Energy Alts, Agriculture Alts, Infrastructure Alts, and Income Alts. During Bear Markets the Index employs a set of Bear Market Strategies to select a set of defensive Momentum Leaders from among bonds, treasuries, gold, and others.
5. EZ-ST: Main Street Momentum
During Bull Markets, the EZ-ST Main Street Momentum Index selects a portfolio of five ETFs comprising the Momentum Leaders of its five underlying strategies: SPY Defender, QQQ Defender, Dow Defender, Rus1K Defender, and Global Defender. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
6. EZ-MO: Broad Markets Momentum
During Bull markets, the EZ-MO Broad Markets Momentum Index selects a portfolio of three ETFs comprising the Momentum Leaders of each of its three underlying strategies: SPY Defender, QQQ Defender, and Global Defender. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
7. EZ-RO: Defensive Sector Rotation
During Bull markets, the EZ-RO Defensive Sector Rotation Index selects a portfolio of eight ETFs comprising the Momentum Leaders of its eight underlying strategies: SPDR-Sectors, iShares-Sectors, Vanguard-Sectors, Dissimilar-Sectors, SPDR-Subsectors, iShares-Subsectors, AI Champions, and Global Prudence. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
8. EZ-HT: Hyper-Tech Momentum
During Bull markets, the EZ-HT Hyper Tech Momentum Index selects a portfolio of four ETFs comprising the Momentum Leaders of each of its four underlying strategies: AI Tech Funds, AI Robotic Funds, AI Chips and Bits, and AI Data Center Power. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
9. EZ-SX: Sweet 16 Giga Cap Stocks
During Bull markets, the EZ-SX Sweet 16 Giga Cap Stocks Index first identifies 160 of the largest suitable US traded stocks by capitalization. 16 Momentum Leaders are identified. The top four are each held with 12% allocations, and the remaining 12 are each held with 4.33% allocations. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
10. EZ-LV: Leveraged Momentum
During Bull markets, the EZ-LV 2X Leveraged Momentum Index selects a portfolio of four ETFs comprising the Momentum Leaders of each of its four underlying strategies: 2X SPY Protection Plan, 2x Tech w/o the Wreck, 2x Sector Rotation, and 2x Global Domination. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.
11. EZ-AI: Robotics, AI, and Power
During Bull markets, the EZ-AI Robotics, AI, and Power selects a portfolio of six ETFs comprising the Momentum Leaders of each of its six underlying strategies: AI Robotic Stocks, AI Chip Stocks, AI Code Stocks, AI Tech Funds, Robotics Funds, and Data Center Power Funds. During Bear Markets the Index employs a Bear Market Strategy that seeks to avoid risk and secure a positive return by selecting Defensive Momentum Leaders from among bonds, treasuries, gold, and others.