NOVEMBER 23, 2020 — Two-time Charles H. Dow Award winner (2014 & 2016) Michael Gayed launched RORO, a tactical rotation strategy ETF, last week based on the strategy he employs in his research. In 2015, he published a whitepaper titled “Lumber: Worth its Weight in Gold,” that prescribes the methodology used in the new ETF.
“The way that the index was constructed is to feature lumber and gold as risk on, risk off signals, and a shorter, quicker timeframe than what’s in the paper, and make it very simple — rotate around these two,” Gayed told ETF Trends.
“The index is up about 21%, which is actually a very good year, in the context of the insanity, but it has gotten nowhere for 6 months. The bulk of this Index’s performance is coming out of Covid, and that’s when lumber prices started rising.”
Gayed added, “I’ve always wanted to bring my approach to risk-on and risk-off trading to the exchange-traded marketplace. For investors looking to diversify with a US-focused tactical rules-based strategy in what may be a much more volatile cycle going forward, RORO may be a great way to take advantage of swings to come between U.S. stocks and Treasuries.”
You can find the full article about RORO on the ETF Trends website here: https://www.etftrends.com/michael-gayed-launches-roro-tactical-rotation-etf-worth-its-weight-in-gold/
Michael Gayed’s Dow Award-winning papers can be viewed in our Dow Award Archive at https://cmtassociation.org/association/awards/charles-h-dow-award/. The deadline for submission for the 2021 Dow Award is December 2.