Asset Allocation Model

Dynamic ETF allocation for long-term stability and performance

The Asset Allocation Model (AAM) is a simple, yet powerful strategy designed to balance growth and protection.

It dynamically allocates between stocks, bonds, and cash, shifting exposure toward the most profitable asset class while reducing risk during market downturns.

Built on over a decade of real-market data, the AAM offers a disciplined, rules-based approach to long-term investing , with only three to four trades per year.

1️⃣ Concept: adapt, don’t react

Markets evolve constantly, but emotional reactions often lead investors to make poor timing decisions.

The AAM removes emotion from the process by following objective signals that measure relative strength between asset classes.

When equities trend higher, the model allocates to stock ETFs.

When signals weaken, it moves into bonds or cash.

This systematic reallocation keeps portfolios aligned with the market’s prevailing direction.

Goal: capture most of the upside while limiting large drawdowns.

2️⃣ How it works

Each month, our algorithm analyzes the recent performance of four major ETFs representing global markets:

Nasdaq-100 ETF Exposure to innovative US companies

S&P 500 ETF Core global equity benchmark

Stoxx Europe 600 ETF Diversification across major European markets

Aggregate Bond ETF Defensive allocation to fixed income

The AAM ranks these ETFs by relative momentum and invests in the leader(s).

When momentum for equities turns negative, the model shifts partially or fully into bonds or cash until the trend improves.

3️⃣ Why it works

The AAM relies on two well-documented market principles:

• Momentum effect: assets that have outperformed recently tend to continue outperforming in the near term.

• Trend filtering: major bear markets can be avoided by exiting when long-term trend indicators turn negative.

This combination produces steady growth with smoother volatility, especially during turbulent markets.

4️⃣ Performance

Since 2014, the AAM has delivered +10.7 % average annual return versus benchmark +8.8 %, based on real-life portfolio tracking through our French platform lesmeilleursfonds.com.

Past performance does not guarantee future results. All figures are presented for informational purposes.

Highlights:

✅ Outperforms global equity benchmarks over 11 years.

✅ Experiences smaller drawdowns in bear markets.

✅ Maintains exposure to global growth during uptrends.

5️⃣ Key advantages

• Easy to follow : one ETF per allocation period.

• Low maintenance : 3 to 4 trades per year.

• Diversified : exposure to US and European markets plus global bonds.

• Accessible : suitable for investors of any experience level.

• Transparent : simple monthly updates and clear rationale.

The AAM is ideal for investors who want a hands-off strategy focused on long-term growth and capital protection.

6️⃣ Monthly updates

Every month, subscribers receive an email alert with the latest allocation signal.

You simply adjust your ETF holdings according to the recommendation , it takes only a few minutes.

Consistency = Performance

Follow the monthly signals, avoid over-reacting to daily market noise.

7️⃣ Get started

Join thousands of investors already using data-driven allocation to grow their wealth with less stress.

👉 Subscribe to Monthly Recommendations

👉 Compare with Sector Rotation Model (SRM)