FormulaFolios VaR Allocation Series is a quantitatively managed portfolio of exchange traded funds and cash equivalents. FormulaFolio's proprietary step-by-step mechanical approach to selecting positions eliminates emotional trading and is designed to only select above average positions based on both fundamental and technical indicators.

The investment strategy utilizes 8 separate global markets to define a tactically chosen asset allocation model. Unlike traditional asset allocation models that are static in weightings, the VaR methodology continually measures the risk and opportunity of each asset class to dynamically change the asset allocation each month. Using no outside leverage or margin, the strategy seeks to identify the most probable direction of major US equity markets, as well as the most statistically probable global asset classes for generating maximum total investor returns. Exchange Traded Index funds (or ETF's) are used exclusively to take advantage of these probabilities.



While the VaR Allocation Series has roots in Nobel Prize academic research such as Modern Portfolio Theory, it also uses proprietary multi-factor quantitative models to overweight desirable markets and underweight less desirable markets. This unique management style allows the portfolios to combine the benefits of low cost and tax efficient ETF investing with active risk management and diversification.

Due to risk management processes contained within the quantitative models, the portfolio may not be fully invested at all times.