Tactical asset allocation is an active portfolio management strategy that aims to offer absolute or risk-adjusted returns by switching among different asset classes.
Such a strategy allows the fund to benefit from the market pricing anomalies or strong market sectors. Fund managers have wide discretion when it comes to asset allocations using tactical asset allocation, and this may result in big fluctuations in their levels of risk. Let’s take a look at the ten best performing tactical allocation funds.
Ten Best Performing Tactical Allocation Funds
We have used the past one-year return data (from money.usnews.com) of tactical allocation funds to rank the ten best performing tactical allocation funds. Here they are in reverse order.
10. Quantified Evolution Plus Fund (9%)
Quantified Evolution Plus Fund (MUTF: QEVOX) allocates its assets among equities, debt, gold, commodities and Bitcoin. It has given a return of almost -10% in the last three months.
QEVOX has more than $70 million in total assets. The top three holdings of the fund are: Fidelity® Inv MM Fds Government I, First American Government Obligs Z and Vanguard Intl Eq Ind.
9. GuidePath® Tactical Allocation Fund (10%)
GuidePath® Tactical Allocation Fund Service Shares (MUTF:GPTUX) allocates its assets in a diversified portfolio of domestic and international equity securities, Global Depositary Receipts, domestic and international fixed income securities, ETFs, mutual funds and cash equivalent money market securities.
It has given a return of almost -2% in the last three months and almost 8% in the last three years. GPTUX has more than $500 million in total assets. The top three holdings of the fund are: Vanguard S&P 500 ETF (NYSE:VOO), ProShares UltraPro S&P500 (NYSE:UPRO), and Apple (NASDAQ:AAPL).
8. Astor Sector Allocation Fund (11%)
Astor Sector Allocation Fund (MUTF: ASPGX) primarily invests in ETFs that mainly invest in equity securities, fixed-income securities and cash equivalents. It has given a return of almost -6% in the last three months and almost 11% in the last three years.
ASPGX has more than $20 million in total assets. The top three holdings of the fund are: Health Care Select Sector SPDR® Fund (NYSE:XLV), Industrial Select Sector SPDR® Fund (NYSE:XLI) and Consumer Discretionary Select Sector SPDR® Fund (NYSE:XLY).
7. AQR Multi-Asset Fund (11%)
AQR Multi-Asset Fund (MUTF: AQRIX) mainly invests in developed market equities, nominal and inflation-linked government bonds, currencies, commodities, and more.
It has given a return of over -1% in the last three months and almost 9% in the last three years. AQRIX has more than $140 million in total assets. The top three holdings of the fund are: Limited Purpose Cash Investment, Ubs Relationship Fds, and United States Treasury Bills 0%.
USAA Target Managed Allocation Fund (13%)
USAA Target (NYSE:TGT) Managed Allocation Fund (MUTF: UTMAX) normally invests in U.S. and/or foreign equity securities and fixed-income securities through ETFs and real estate securities.
It has given a return of almost -3% in the last three months and over 14% in the last three years. UTMAX has more than $500 million in total assets. The top three holdings of the fund are: Vanguard S&P 500 ETF, Vanguard Total Stock Market Index Fund ETF Shares (NYSE:VTI), and Future on S&P 500 PR Mar22.
5. Donoghue Forlines Dividend Fund (14%)
Donoghue Forlines Dividend Fund (MUTF: PWDAX) tracks the FCF Risk Managed Sector Neutral Dividend Index for allocating investment. It has given a return of almost 1% in the last three months and almost 6% in the last three years.
PWDAX has more than $40 million in total assets. The top three holdings of the fund are: Devon Energy (NYSE:DVN), Cerner (NASDAQ:CERN) and Lockheed Martin (NYSE:LMT).
4. Kensington Dynamic Growth Fund (KAGIX, 14%)
Kensington Dynamic Growth Fund (MUTF: KAGIX) mainly invests in domestic equity-index ETFs, domestic equity-index mutual funds, and U.S. Treasury debt. It has given a return of almost -1% in the last three months. KAGIX has more than $500 million in total assets.
The top three holdings of the fund are: First American Government Obligs X, iShares 7-10 Year Treasury Bond ETF (NYSE:IEF), and iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).
3. Matisse Discounted Cl-End Fd Strat (14%)
Matisse Discounted Closed-End Fund (MUTF: MDCEX) is a "fund of funds" that usually invests in unaffiliated closed-end funds that pay regular periodic cash distributions.
It has given a return of over 2% in the last three months and almost 9% in the last three years. MDCEX has more than $40 million in total assets.
The top three holdings of the fund are: Tetragon Financial Ord, Pershing Sq Hldgs and Third Point Investors USD Ord.
2. Arrow DWA Tactical Macro (16%)
Arrow DWA Tactical: Macro Fund (MUTF: DWTFX) normally invests in ETFs and other investment assets, including equity securities, fixed income securities and alternative assets.
It has given a return of almost 7% in the last three months and almost 12% in the last three years. DWTFX has more than $54 million in total assets.
The top three holdings of the fund are: Invesco DB Commodity Index Tracking Fund (NYSE:DBC), Arrow Reverse Cap 500 ETF, and Technology Select Sector SPDR® Fund (NYSE:XLK)
1. Franklin Strategic Real Return Fund (16%)
Franklin Strategic Real Return Fund (MUTF: LRRAX) allocates its assets among five investment classes: Inflation-Linked Debt Securities, Global Equity Securities, Commodity-Linked Securities, Exchange-Traded Funds and Tactical Strategy.
It has given a return of over 3% in the last three months and almost 10% in the last three years. The top three holdings of the fund are: Real Return Fund, Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ), and United States Treasury Notes 0.625%.