Prometheus ETF Portfolio

Increasing Risk Modestly

Welcome to Prometheus ETF Portfolio. The Prometheus ETF Portfolio aims to allow everyday investors to access an investment solution that combines active macro alpha, passive beta, and strict risk control, all in an easy-to-follow, low-turnover solution. We aim to achieve strong risk-adjusted returns relative to cash, with limited capital drawdowns in depth and duration. We do this in a highly accessible package, which rotates between three highly liquid ETFs, readily available to any investor with a brokerage account.

Our observations are as follows:

• The distribution of macroeconomic regime probabilities has flattened significantly in recent weeks and remains in this state. Given this backdrop, outsized bets on any market are not warranted.

• Our high-frequency tracking of macroeconomic fundamentals shows no meaningful change to overall economic activity, with growth expanding and inflation slowing.

• We take signals from both markets and the economy to get the most comprehensive view. Given the current backdrop, diversification, with modest tilts and tight risk control, is likely to outperform. Our current allocations reflect this.

Before we dive into the data driving our assessment, we share our latest positions.