Investment advisory services offered through Virtue Capital Management, LLC (VCM), a registered investment advisor. For a complete description of investment risks, fees and services, review the Virtue Capital Management firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting Virtue Capital Management.

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Virtue Capital Management's Dual Momentum Sector & Style Rotation strategies are structured in 3 versions to meet a variety of risk tolerances and investment goals.

Virtue Capital Management (VCM) Dual Momentum Sector & Style Rotation Strategies are two separate series of strategies that use the same investment methodology. The VCM Dual Momentum Sector Rotation Series identifies and provides exposure to the top 4 ranked broad U.S. economic sectors based on a proprietary relative strength ranking methodology. The sector/style ranking methodology relies upon relative strength comparisons across 10 of the 11 major sectors in the US market (minus real estate) as well as cash as measured by the 1-month T Bill.

The VCM Dual Momentum Style Rotation Series identifies and provides exposure to the top 4 ranked broad global asset classes based on a proprietary relative strength ranking methodology. The sector ranking methodology relies upon relative strength comparisons across 10 global asset classes as well as cash as measured by the 1-month T Bill.

The Dual Momentum Rotation Strategies provides exposure to 4 top-ranked broad U.S. economic sectors or styles based upon VCM’s relative strength ranking methodology. The strategies seek to capitalize on the historical tendency of sectors/styles to diverge from one another through the course of major US equity market cycles. By seeking to identify positive sector/style performance trends in a timely fashion, this divergence may create a sustainable source of opportunity for sector/style rotation strategies. VCM sector/style ranking methodology relies upon relative strength comparisons across every major sector/style in the US market as well as cash as measured by the 1-month T Bill.

Portfolio construction consists of using a dual momentum approach by using relative strength with absolute momentum to attempt to mitigate volatility. The efficacy of momentum in financial markets has been well researched and thoroughly documented. Extensive academic research has demonstrated that momentum may be employed in all markets during any business cycle. Momentum is a dynamic investment approach regarding validity and applicability. Momentum based investing relies on the concept of trend following. Momentum strategies analyze the price movement of an individual security or group of securities. Relative Strength (RS) is a momentum-based strategy that seeks to measure the price movement of an individual security parallel to that of a collective group. The concept seeks to invest in the security with the highest relative price strength and periodically rebalances to maintain momentum.

When fully invested, initially the top four sectors/style are selected and kept within the rotation of our proprietary turnover solution. After the last trading day of the month our dual momentum methodology is applied, and trades will be placed on the first trading day of the month. If cash is outperforming any of the top four sectors/styles, we would invest 25% in a cash position (1 month T bill) will replace that sector(s)/style(s). Cash can represent 25%, 50%, 75% or 100% of the equity portion of each of the portfolios. The result is a strategy in which attempts to focus on the best performing sectors/styles during an upmarket, while defending against prolonged bear market scenarios.

Exposure to telecommunications services and information technology sectors are represented by one ETF. This takes place when the sector strategy is invested in both telecommunications services and information technology. This is due to the two sectors being represented by one ETF. Should the sector strategy be invested in both telecommunications services and information technology the sector strategy would be invested 50% into one ETF.