Rotation Strategy S&P 500 and Treasury Bonds (Monthly Momentum - ETF)

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Some days ago we published an article that rotates between SPY, TLT, and EEM based on monthly momentum.

Today we look at a similar ETF sector momentum/rotation strategy but we exclude EEM: we only look at SPY (S&P 500) and TLT (20 year Treasury bond).

TLT and long-term Treasuries work as a safe haven when uncertainty picks up. This is the reason why our SPY and TLT rotation/momentum strategy performs very well. The drawdown is low but the total return is better than “buy and hold”. 

Please click here to read about monthly momentum in SPY and TLT.