iQ Canada All Assets Hedge Model
The iQ Canada All Assets Hedge Model is built to grow capital while staying aware of downside risk. Instead of locking into a traditional stock and bond mix, the model moves across asset classes—stocks, bonds, commodities, currencies, and, when needed, hedges—based on where strength is actually showing up.
The idea is simple: leadership doesn’t stay in one place. This model is designed to follow it.
Investment Objective
The objective is to grow capital over time while reducing exposure during weaker market environments.
Rather than trying to predict markets, the model focuses on positioning capital in areas that are already working, and stepping away from areas that are not.
Investment Process
Step One — Start with a broad universe
The model looks across a wide range of ETFs covering stocks, bonds, commodities, currencies, and inverse exposures. Nothing is forced—everything is on the table.
Step Two — Rank what’s working
Each asset is ranked based on price strength and momentum. This tells us where money is actually flowing, not where we think it should go.
Step Three — Focus on the leaders
The model narrows down to a small group of top-ranked assets. This keeps the portfolio focused on the strongest trends instead of spreading capital too thin.
Step Four — Confirm the trend
Before anything is selected, the model checks for confirmation to avoid weak or unstable moves. The goal is to stay with trends that have some staying power.
Step Five — Build the portfolio
The portfolio is constructed from those top selections. Depending on the environment, that can include:
Growth-oriented assets when markets are strong
Defensive positions like bonds or gold
Hedge positions when conditions deteriorate
Step Six — Rebalance on a set schedule
The model updates on a seasonal quarterly cycle—February, May, August, and November. This avoids a lot of the noise that comes with traditional quarter-end activity.
Potential Advantages
Flexible by design
The model isn’t tied to one asset class. It can move as conditions change.
Diversification that actually matters
By using different asset classes, it’s not fully dependent on equities to perform.
Built-in defense
It has the ability to shift into more defensive or hedged positions when markets weaken.
Disciplined process
Everything is rules-based. No guessing, no emotion.
Focused exposure
It concentrates on what’s working instead of holding a little bit of everything.
Potential Pitfalls
Relies on trends continuing
If markets get choppy or reverse quickly, the model can get caught on the wrong side.
More concentrated than traditional portfolios
Fewer positions means each one matters more.
Not early at turning points
Like most momentum-based approaches, it reacts after trends begin—not before.
Different behavior than a stock portfolio
Because it uses multiple asset classes, performance may not always line up with what clients expect from equities.
Will lag at times
In strong, straight-up equity markets, a diversified approach will likely underperform. Your clients need to understand this!
Bottom Line
This is a go-anywhere model built to adapt. It’s not trying to predict markets—it’s trying to stay aligned with what’s working and avoid what isn’t.
For most advisors, it fits best as a diversifier or tactical sleeve, helping smooth out returns when traditional portfolios hit rough patches.