New for 2025, we’re excited to unveil SEAF Ultra, an enhancement to our SEAF model. SEAF Ultra is designed to empower investors to capitalize on sector opportunities by strategically employing 2x leveraged sector ETFs during high-momentum scenarios. This innovation represents a significant leap in our ability to deliver exceptional performance while maintaining disciplined risk management.
SEAF Model Graphic
Leveraged ETFs are sophisticated financial instruments engineered to magnify daily returns, offering double or even triple the performance of a specific index or sector. They achieve this using derivatives such as futures contracts to amplify exposure.
With SEAF Ultra, our model dynamically switches from a standard 1x SPDR sector ETF to its 2x ProShares counterpart when specific quantitative metrics signal a compelling opportunity. Refer to the table below to see the ETF’s we are leveraging for this model.
SEAF Ultra is powered by the same algorithmic engine behind SEAF, which identifies the velocity of money flows across the 11 sector SPDRs. By layering in additional quantitative tools, SEAF Ultra pinpoints “special situations” where leveraging a 2x ETF can amplify returns.
While SEAF identifies where to invest, SEAF Ultra’s overlay determines when the market has aligned conditions—like having the “wind at your back”—to justify using leveraged ETFs. SEAF Ultra transitions from 1x to 2x ETFs when these three conditions are met:
Clients familiar with SEAF know its consistent ability to outperform the S&P 500 in various market conditions, all while maintaining S&P 500-like risk levels. SEAF Ultra builds on this foundation by adding the upside potential of 2x leveraged ETFs.
Hypothetical backtested results highlight SEAF Ultra’s impressive performance since 2018:
SEAF Ultra Hypothetical Backtested Performance: 2018-2024
This additional performance comes with a slight increase in risk:
Despite the elevated volatility, SEAF Ultra strategically mitigates risk. In bull markets, it increases exposure by utilizing 2x ETFs. In bear markets, it defaults to standard SEAF signals without leverage, avoiding unnecessary risk.
This dynamic approach ensures that leverage is only applied when our model quantitatively indicates exceptional upside opportunity.
SEAF Ultra vs. S&P 500 (SPY): Since Q4 2018 through Q4 2024
SEAF Ultra is a bold step forward for investors seeking enhanced returns through a disciplined application of leveraged strategies. By combining the proven sector-selection capabilities of SEAF with intelligent leverage, SEAF Ultra offers a compelling opportunity to outperform traditional benchmarks.
*Disclosure/Disclaimer: The information on this website is provided solely for informational purposes and is not intended to be an offer to sell securities or a solicitation of an offer to buy securities. The strategies employed in managing this and other model portfolios may involve algorithmic techniques such as trend analysis, relative strength, moving averages, various momentum, and related strategies. There is no assurance that these strategies and techniques will yield positive outcomes or prevent losses. Past performance as indicated from historical back-testing is hypothetical in nature and does not involve actual client portfolios, does not consider cash flows or market events, and is not predictive of future performance. The model is managed by contemporaneously recording hypothetical trades. Such trades are not live trades and are not influenced by emotional or subjective reactions to extraneous market, economic, political and related factors. The performance for such model(s) is derived from utilizing a variety of technical trading strategies and techniques. Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry, and sector performance. Asbury Research LLC does not and cannot provide any assurance that an investment in the model portfolios will yield profitable outcomes. The risk of loss trading in financial assets can be substantial, and different types of investment vehicles, including ETFs, involve varying degrees of risk. Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition. An investor’s personal goals, risk tolerance, income needs, portfolio size, asset allocation and securities preferences, income tax, and estate planning strategy should be reviewed and taken into consideration before committing to a specific investment program. Please consult with your financial advisor to discuss the appropriateness of any strategy prior to investing. All investments involve risk. Principal is subject to loss, and actual returns may be negative. Returns are not guaranteed in any way and may vary widely from year to year.
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