The Armor US Equity Index ETF (ARMR) began trading on 2/11/20. Since its inception to its first rebalance (3/3/20), the fund’s return on an NAV basis was -9.74% versus the -10.43 return of the S&P 500. 
Performance to the most recent month-end can be found by clicking here. Performance data quoted represents past performance and is no guarantee of future results.
Sector Positioning During February
During the month of February in which the fund was active, ARMR had a roughly equal weighting in nine of the 11 S&P 500 sectors. The fund did not have any exposure to the Energy and Materials sectors.
Positive Contributors to Performance
Energy was the worst performing sectors of the S&P 500 during February while Materials was in the bottom half of performers. Not having exposure to these two sectors helped performance. Additionally, the fund’s exposure to defensive sectors, such as Communication Services and Real Estate, also helped performance.
Negative Contributors to Performance
Technology and healthcare were among the better performing sectors during the month. While ARMR had exposure to these sectors during the month, it was underweighted relative to the S&P 500, which acted as a drag on performance.
Shift to Technology for March
The index which underlies the ARMR ETF uses a proprietary Market Performance Indicator (MPI) to estimate which sectors may offer strong, long-term performance potential with lower expected downside risk. The MPI uses a sector’s moving average price as a basis for this factor. When a sector is trading above (below) its moving average, it is included (excluded) in the index.
The sharp market correction that occurred during February created an unusual market environment in which every sector in the S&P 500 experienced negative performance during the month. However, with its strong performance over the past twelve months, the technology sector is still ranked as attractive based on its MPI. Therefore, moving into March, the weighting of the technology sector in ARMR will be 100%.
We believe that technology stocks may be beneficiaries of the concerns surrounding the global outbreak of the coronavirus and its potential to spread further in the United States. More of the population may choose to work from home which may positively impact technology stocks that facilitate teleconferencing. Companies offering streaming services, food delivery, and grocery delivery may be positively impacted as people avoid public places like movie theaters, restaurants, and shopping centers.
What ARMR Is Built For
Certainly, we are in a unique market environment. The calm that was so indicative of the equity market through much of last year was wiped out by concerns about the coronavirus and the swift market correction. However, that is one of the environments for which ARMR was created. The index behind ARMR was designed with the goal of providing investors with downside protection during turbulent markets.
We believe that ARMR may be appropriate for investors seeking downside protection in a turbulent equity market.
 Source: Yahoo Finance
 S&P Dow Jones Indices, Index Dashboard, February 2020