Tactical allocation ETFs are a type of exchange-traded fund (ETF) that use a dynamic, active investment strategy to allocate assets among different asset classes or sectors. The goal of tactical allocation ETFs is to take advantage of market opportunities and changes by adjusting their portfolio holdings in response to market conditions.

Tactical allocation ETFs typically use a combination of quantitative analysis, technical indicators, and market research to make investment decisions. They may invest in various asset classes, such as stocks, bonds, commodities, and currencies.

The fund managers of tactical allocation ETFs make adjustments to the fund's portfolio holdings in response to market conditions, including changes in economic conditions, interest rates, and political events. They have the flexibility to invest in a broad range of securities and sectors, so they can make adjustments as market conditions change.

Tactical Allocation

The Cambria Tactical Yield ETF (TYLD) invests in global fixed-income securities and REITs, basing its strategy on yield spreads relative to U.S. Treasury Bills. It shifts its allocation toward U.S. Treasury Bills when yield spreads are narrow and invests in other fixed-income sectors when spreads are historically wide.

Cboe US

TYLD

NYSEArca

LEXI

RHRX

Relative Sentiment Tactical Allocation ETF is an actively managed tactical allocation ETF that uses relative sentiment and macro indicators to allocate among U.S. equities, developed-market equities, gold and short-term U.S. Treasury exposure.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
TYLD	Cambria Tactical Yield ETF	5.17	—	—	99
LEXI	Alexis Practical Tactical ETF	2.29	0.77	—	86
RHRX	RH Tactical Rotation ETF	2.22	—	—	86
MOOD	Relative Sentiment Tactical Allocation ETF	2.16	—	—	78
TRTY	Cambria Trinity ETF	2.09	0.64	—	83

Top Tactical Allocation ETFs by Sharpe Ratio

Top Tactical Allocation ETFs by Sharpe Ratio