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Investors Find Support in Fairlead Tactical Sector ETF Amid Market Volatility

Katie Stockton has identified a promising strategy for investors looking for stability during turbulent market conditions. She oversees the Fairlead Tactical Sector ETF (TACK), which is engineered to adapt quickly during periods of market stress and operates independently of a traditional index.

Stockton, founder of Fairlead Strategies, explained the ETF’s goal, stating, “Our focus is on helping investors capitalize on market upswings through sector rotation while keeping drawdowns to a minimum. This strategy can provide a substantial long-term advantage, allowing investors to avoid deeper losses.” This approach is particularly relevant in the current market climate marked by significant fluctuations.

Since the announcement of “reciprocal” tariffs by President Donald Trump on April 2, TACK has experienced a modest decline of just over 4%. In contrast, the S&P 500 has seen a sharper decline of 6.9%, highlighting TACK’s relative resilience during challenging times.

One notable feature of Stockton’s ETF is its monthly rotation among all 11 sectors of the S&P 500. This agility enables the fund to adjust its holdings based on market performance and investor sentiment. Stockton noted, “We have stepped away from technology for now. Currently, some sectors we previously favored have diminished in appeal.”

As of April 16, the leading sectors in TACK included consumer staples, utilities, and real estate, as reported by Fairlead Strategies. Following Thursday’s market close, the Fairlead Tactical Sector ETF is down 4% year-to-date.

In contrast to TACK’s performance, other sector-specific ETFs have found themselves under pressure. The Invesco Top QQQ Trust (QBIG), which reflects the top 45% of companies within the Nasdaq-100 index, is down 22% in 2025. Additionally, the GraniteShares YieldBoost TSLA ETF (TSYY) has plummeted 48% since the beginning of the year.

Troy Donohue, BTIG’s head of Americas portfolio trading, believes that Stockton’s ETF demonstrates an effective strategy, particularly amid the recent sharp market declines. He remarked, “TACK exemplifies how agility can be beneficial during these volatile times. It’s encouraging to see an ETF performing well in this recent downturn.”

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