Membership Plan: Lite
Risk Factor: Moderate
Stock Allocation: SPY (100%)
Description:
SP500 underscores what iFlip offers its community. A tactical method to navigate the ups and downs of the market, namely the S&P 500, traded through the symbol SPY. The S&P yields 9.5% historically. However it has an historical Sharpe ratio (Reward/Risk) of just 0.33. This Sharpe ratio prevents investors, especially older investors, from having too much exposure to this High Return instrument because it is inherently aggressive. However, the SP500 Smartfolio manages the exposure to the SPY by tactically switching between cash and ownership which smooths out the journey of a simple Buy and Hold strategy found in many mutual funds.