US Sector Climber
Sharpe Ratio
Volatility Target
Max. LeverageThe US Sector Climber aims to outperform S&P 500 on a sharpe ratio basis by changing allocations to sectors more dynamicly and based on the sector's recent trend.
It takes correlations into account to minimize volatility; therefore it is expected the have better returns in down markets while tracking S&P closely in bullish markets.
The portfolio is rebalanced at multiple times daily, particularly when the underlying assets experience sharpe changes in expected returns, volatility, or correlations. The strategy targets at most 10% volatility. Access to the strategy is available through 1 delta or structured products replication.
Real Time Strategy Performance1
Strategy Access
1 Delta
The most straightforward, 1:1 implementation of the Strategy in your portfolio.
FIA Replication
The index lends itself for upside participation due to its low volatility.
Note Replication
We do not recommend using this index in a structured notes type of payoff as it is a low volatility product.
Strategy Construction
The U.S. Sector Climber quantitative investment strategy (the Strategy) invests into 11 U.S. sector ETFs, and a gold ETF. To allocate between these investments, the Strategy performs a mean-variance optimization (MVO) at several points during the day using short term expected returns and volatilities, and longer term correlation estimates. Resulting weights are smoothed before they are translated into share numbers.
FAQFrequently Asked Questions
For general questions please consult this page.
Questions specific to this strategy are answered here;
if you have additional Questions please email us at pm@glrtec.com
What does the US Sector Climber (GLRUSSC1) do?
The US Sector Climber is a sector rotation strategy. Its core objective is to dynamically allocate capital toward sectors expected to outperform, while reducing exposure to sectors expected to underperform.
Rather than focusing on individual stocks, it groups the market into broad economic sectors (for example Technology, Healthcare, Energy, and Utilities) and evaluates their relative attractiveness, often using signals such as momentum and trend dynamics. Based on these signals, the strategy systematically overweights sectors with stronger expected performance and underweights or avoids weaker ones.
This is meaningfully different from traditional market-cap weighted indices like the S&P 500. In those indices, sector weights change only gradually as companies grow or shrink in market capitalization. As a result, exposure is relatively sticky and does not actively respond to changing market regimes.
The Sector Climber, by contrast, is explicitly dynamic: it can meaningfully shift exposure across sectors as conditions change, leading to potentially large deviations from static benchmark allocations.
A key design goal is not just return maximization, but risk-adjusted performance. The strategy seeks to allocate risk efficiently across sectors, avoiding excessive concentration in high-volatility areas (such as Technology when it becomes overheated), and instead balancing exposure across multiple sectors in a way that targets higher returns per unit of risk. In practice, this means constructing a portfolio that can combine higher-growth sectors with more defensive ones (such as Utilities) to improve overall stability while maintaining return potential.
What does GLRUSSC1 stand for?
