U.S. Outperformance is one of our Limited Edition Kits, positioned to capitalize on the value between U.S. and international equities. This Kit takes a long-short approach for a paired trade (like a hedge-fund) that rebalances weekly to evenly weight the long and short positions.
Examples of assets in the Kit:
The Kit is long U.S. equities via iShares Russell 1000 ETF
It shorts MSCI EAFE Index by investing in the inverse ETF, ProShares Short MSCI EAFE
Example of Kit allocation in a given week:
Microsoft Corporation (MSFT)
Investors can gain from our view that U.S. equities are undervalued, especially compared to markets in other developed countries. Even if markets are down, the U.S. has a strong economic outlook, creating value for investors when markets recover.
Asset class focus
U.S. and international developed market equities ETF