The ETFSector.com Elev8 Model declined 1.36% in July, compared with a 0.02% decline for the Vanguard S&P 500 ETF benchmark. The resulting 134-basis-point shortfall interrupted the model’s improving three-month trend, during which it returned 4.96% versus 4.25% for the benchmark. July therefore represented a setback rather than a continuation of the relative strength established earlier in the quarter.
Review: Elev8 Performance vs. S&P 500 (VOO) | YTD
Review: Elev8 Dashboard | July 2026
Review: Elev8 Positions | July 2026:
The model entered the month with meaningful exposure to Information Technology, Financials, Industrials, Health Care and Consumer Discretionary. At July 31, the largest allocation was the Vanguard Information Technology ETF at 40.19%, followed by Financials at 17.19%, Industrials at 11.35%, Health Care at 10.08% and Consumer Discretionary at 9.73%. Smaller positions in Energy, Real Estate and Materials provided additional diversification.
This broad sector mix reduced reliance on a single allocation, but it also limited the portfolio’s ability to match a benchmark still heavily influenced by its largest growth companies. Information Technology remained the central return driver, while the remaining positions created a more diversified blend of cyclical, defensive and rate-sensitive exposures. The model’s July decline suggests that this diversification did not fully offset weakness among its larger allocations or capture enough strength from sectors leading the broader market.
Year to date, Elev8 returned 7.34%, compared with 11.73% for the benchmark, resulting in 416 basis points of underperformance. The shortfall reflects a year in which diversification and sector rotation have not kept pace with benchmark leadership. The model also trailed over six months, returning 5.13% versus 8.59%, and over one year, returning 12.59% versus 19.58%. Its positive three-month relative result remains the clearest indication that performance had begun to stabilize before July.
The risk statistics show that Elev8 has delivered this performance with lower broad-market sensitivity. Over the trailing year, volatility was 10.53%, compared with 13.26% for the benchmark, while beta was 0.688. The model’s upside capture was 73.23%, showing that it participated in less than three-quarters of benchmark gains during positive periods. Downside capture was 92.25%, indicating only modest protection during declining markets. Its one-year Sharpe ratio of 1.131 also remained below the benchmark’s 1.359.
Since inception, the model has produced an annualized return of 13.53%, versus 17.94% for the benchmark. Volatility remained lower at 11.69%, but negative alpha of 1.23% and an upside-capture ratio of 84.75% show that the strategy has not yet converted its lower-risk profile into benchmark-relative outperformance.
The central takeaway is that Elev8 remains a diversified sector-rotation strategy with lower volatility and beta, but its 2026 allocations have not captured enough of the market’s strongest leadership. Improving performance will require stronger contribution from its Financials and Industrials positions while maintaining sufficient Technology exposure to participate in continued growth-sector strength. 2026 has been a rough year for the model’s monthly trend-following methodology as continued headline risk around Middle East conflict has swung sector performance materially for short-term periods. This is not the macro environment this model was designed for.
Model results are hypothetical, reflect ETF Action and FactSet methodologies and are provided for informational purposes. Past performance is not indicative of future results.
