Investor protection during market volatility through tactical fund
Katie Stockton, the founder of Fairlead Strategies, has developed an innovative solution for investors looking to navigate turbulent market conditions. Her Fairlead Tactical Sector ETF (TACK) is specifically designed to be agile during times of market stress, offering a unique approach that is not tied to any index.
Stockton explained on CNBC’s “ETF Edge” that the goal of the ETF is to help investors capitalize on sector rotation to maximize gains while minimizing losses. By utilizing multiple strategies instead of relying on just one, the ETF has proven to be resilient in the current market environment. Since the announcement of President Trump’s tariffs on April 2, TACK has only declined by a little over 4%, compared to the S&P 500’s 6.9% loss.
One of the key features of Stockton’s ETF is its monthly rotation between all 11 S&P 500 sectors. This flexibility allows the fund to adapt to changing market conditions and avoid sectors that may be underperforming. As of mid-April, the top sector holdings of the fund included consumer staples, utilities, and real estate.
Despite the challenging market conditions, the Fairlead Tactical Sector ETF has only experienced a 4% decline year-to-date. In contrast, other ETFs focused on specific sectors or strategies have seen significant losses. For example, the Invesco Top QQQ Trust (QBIG) is down 22% in 2025, while the GraniteShares YieldBoost TSLA ETF (TSYY) has dropped by 48%.
Troy Donohue, the head of Americas portfolio trading at BTIG, commended Stockton’s ETF for its performance during the recent market downturn. He praised TACK for its nimbleness and ability to navigate volatile market conditions successfully.
In conclusion, the Fairlead Tactical Sector ETF offers investors a unique and effective way to navigate unpredictable market swings. With its focus on sector rotation and diversified strategies, the ETF has proven to be a resilient option for investors seeking to minimize losses and maximize gains in turbulent market environments.
