Katie Stockton, the founder of Fairlead Strategies, has introduced a unique option for investors looking to navigate through turbulent market conditions. She oversees the Fairlead Tactical Sector ETF (TACK), which is designed to be flexible and adaptable during times of market volatility. Unlike traditional index-based ETFs, TACK is not tied to a specific benchmark.
Stockton’s approach with TACK focuses on leveraging sector rotation to capture upside potential while minimizing downside risk. By employing multiple strategies instead of relying on a single approach, the ETF has demonstrated resilience in the face of market uncertainties. Since President Trump’s announcement of tariffs on April 2, TACK has only declined by just over 4%, compared to the S&P 500’s 6.9% loss during the same period.
One of the key features of TACK is its monthly rotation among all 11 sectors of the S&P 500. This dynamic approach allows the fund to adapt to changing market conditions and capitalize on opportunities in sectors that are currently out of favor. As of April 16, TACK’s top sector holdings include consumer staples, utilities, and real estate, reflecting Stockton’s strategic allocation decisions.
Despite the challenging market environment, TACK has held its ground well with a modest 4% decline year-to-date. In contrast, other sector-specific ETFs like the Invesco Top QQQ Trust (QBIG) and the GraniteShares YieldBoost TSLA ETF (TSYY) have faced significant losses of 22% and 48% respectively in 2025.
Troy Donohue, the head of Americas portfolio trading at BTIG, commends Stockton’s approach with TACK, especially during the recent market downturn. He praises the ETF’s nimbleness and performance, highlighting its ability to weather the storm in volatile market conditions.
In conclusion, Katie Stockton’s Fairlead Tactical Sector ETF (TACK) offers investors a compelling alternative to traditional index-based ETFs. With its dynamic sector rotation strategy and focus on minimizing drawdowns, TACK has proven to be a resilient option in turbulent market environments. Investors seeking a flexible and adaptive approach to investing may find TACK to be a valuable addition to their portfolios.
