Developed Markets Rotation
Jan 2024 – Sep 2026 · OOS from Jan 1, 2026
Objective
Capture the strongest trends in ex-US developed markets after a long cycle of US dominance—when international equities offer attractive valuations, higher dividend yields, and potential currency tailwinds. The strategy replaces broad, diluted international exposure with systematic concentration across geography and investment style, without requiring you to become a full-time global macro analyst.
92.7%Total return (2.7 yr)
27.9%CAGR (2.7 yr)
6.8%Max drawdownVEA 13.4% · SPY 18.5%
1.92Sharpe ratioSPY 1.25 · VEA 1.17
3.89Sortino ratioSPY 2.41 · VEA 1.85
MonthlyTrading frequency
Jan 1, 2026OOS start
$14KMin. capitalCovers $100/mo fees using 8.4% excess CAGR over VEA (27.9% vs 19.5%), both annualized over the same 2.7-year backtest (Jan 2024 – Sep 2026). Based on backtest; not a guarantee.
Apply for membership · $100/mo
Past performance is not indicative of future results.
Style
Momentum rotation
Cadence
Monthly
How it works
Instead of buying the whole international haystack, this rules-based model scores developed-market ETFs on blended 3-month and 6-month momentum each month-end, concentrates into the top four leaders, applies region and style caps to limit crowded bets, and exits lagging names gradually so capital can rotate cleanly into the next set of winners.
Risk character
Concentrated equity-market risk. Because the strategy deliberately isolates high-momentum international regions and factors, returns and drawdowns will diverge meaningfully from broad, capitalization-weighted benchmarks. This tracking error is intentional: it allows the portfolio to decouple from underperforming countries and styles while staying fully rules-based.
Asset classes
- Ex-US Developed Market Equity ETFs: Targeted exposure across specific countries, regions, and factor styles (e.g., Momentum, Value, Buybacks).
- Cash: Defensive rotation into cash when global market-wide momentum deteriorates.
Benchmarks
- Developed Markets (VEA): Our primary baseline. The strategy aims to outperform this broad international index by replacing passive allocation with concentrated absolute momentum.
- S&P 500 (SPY): Included to demonstrate true structural diversification and regime decoupling from US-dominated equity markets.
Apply for membership · $100/mo
Past performance is not indicative of future results.
Performance
Strategy versus benchmarks, scaled to initial capital at period start. OOS from Jan 1, 2026 (dashed line).
Drawdowns
Peak-to-trough decline from each series' equity curve.
Apply for membership · $100/mo
Past performance is not indicative of future results.