How does this ETF’s benchmark composition (large‑cap, tech‑focused equities and 3‑10 year treasuries) compare to similar multi‑asset products globally?

The KGI US Top Balanced ETF is anchored to the NYSE TPex 70‑30 Equity‑Top 10 N‑Listed & Treasury 3‑10 Year Balanced Index, which splits roughly 70 % into large‑cap, technology‑heavy U.S. stocks (e.g., Apple, Microsoft, Nvidia) and 30 % into intermediate‑term U.S. Treasuries. Globally, the few multi‑asset ETFs that blend equities and bonds—such as Vanguard Balanced Index (60/40), iShares Core Growth/Value (70/30) or the MSCI World Balanced Index—tend to be sector‑neutral on the equity side and credit‑diversified on the fixed‑income side (mixing government, corporate, and sometimes emerging‑market bonds). By contrast, KGI’s benchmark is tilted heavily toward growth‑oriented, high‑beta tech names and relies solely on “clean” Treasury yields, giving it a higher equity‑beta and a more pronounced interest‑rate sensitivity than the broader, lower‑beta global balanced funds.

From a market‑dynamic perspective, this composition means the ETF will track the upside‑downside of the U.S. tech cycle more closely than a typical balanced product. In a risk‑on environment—where the Fed’s policy rate is stable or easing and tech earnings are expanding—the 70 % tech exposure can deliver strong total‑return momentum, while the 3‑10 yr Treasuries provide a modest “floor” and a modest yield boost. Conversely, in a tightening cycle or when valuation concerns curb tech multiples, the Treasury slice will magnify the fund’s duration exposure, pulling performance down as yields rise and Treasury prices fall. This dual‑sensitivity is less pronounced in global balanced ETFs that dilute the equity tilt with defensive sectors and offset Treasury duration with shorter‑term or higher‑coupon government/corporate bonds.

Trading implications

• Short‑term: Watch the Fed’s rate‑path and inflation data. A hawkish stance will pressure the 3‑10 yr Treasury component; a dovish turn can lift the fund’s net‑asset value even if tech momentum stalls.
  
• Medium‑term: Assess U.S. tech valuation metrics (P/E, P/S) and earnings growth trends. If multiples look stretched, consider a partial hedge (e.g., short‑term Treasury futures or a low‑beta balanced ETF) to offset the equity‑beta.
  
• Positioning: For investors seeking a growth‑biased balanced exposure with a clean‑credit profile, the ETF offers a higher expected return than a typical 60/40 balanced fund, but it also carries a higher volatility envelope. Allocate a modest size (≤ 10 % of a diversified portfolio) or use it as a core holding for a “tech‑plus‑duration” tilt while maintaining separate, sector‑neutral balanced or multi‑currency ETFs for true diversification.