Tariff Turmoil & Potential Solutions
- Matt Schreiber
- Apr 4
- 3 min read
UPDATE
Year-to-date through April 3rd, 146 out of 151 model portfolios on the WBI Cy platform with client assets outperformed the S&P 500, which was down -7.94% over the same period. Of those, 46 posted positive returns, 77 were down 1% or less, and only 5 strategies underperformed the S&P 500—a powerful validation of WBI’s risk-managed investment approach.
Market Update – April 4, 2025
Tariff Turmoil & Potential Solutions
April 2nd marked the announcement and rollout of a new round of U.S. tariffs, which triggered a sharp market selloff. In light of continued volatility, we wanted to provide an update and spotlight how WBI portfolios are built to help reduce downside risk when markets turn.
At WBI, we specialize in constructing portfolios that target a specific level of risk—supporting investors in staying the course, especially during turbulent periods. For more risk-averse investors, our WBI Cy platform and multi-manager model portfolios are designed to reduce drawdowns and provide a smoother ride through market stress.
One example is the WBI Cy Target Drawdown -5 model, available on the WBI Cy platform and through Envestnet. The “-5” signifies the model’s design to reduce downside exposure to approximately -5% during the worst calendar year, while allowing for flexibility during shorter periods.
The model has been optimized back to 2008, incorporating some of the most challenging market environments in recent history, including:
• The 2008 Global Financial Crisis
• The 2010 Flash Crash
• The U.S.-China Trade War (2018–2019)
• The COVID-19 pandemic
• The 2022 equity and bond market selloff
Notably, heading into yesterday’s decline, the portfolio maintained a 27% cash position, helping to cushion market volatility. It also holds an allocation to PTLC, an active ETF, which was positioned 50% in cash and 50% invested. Other strategies on the platform may feature other dynamic risk-managed strategies such as PTMC, ALTL, COM, among others. For more details, please download the attached tear sheet.
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Once on the platform, you’ll have access to WBI’s full suite of drawdown-targeted portfolios—each designed to help manage risk and preserve capital. In volatile markets, a proactive approach isn’t just smart—it can be the difference between staying the course and getting thrown off track.
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DISCLOSURE
Past performance is not indicative of future results. This is not an offer to buy or sell any security. No security , including those referred to directly or indirectly, is suitable for all accounts or profitable all the time. This information is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. You should not assume that any discussion or information provided here serves as a substitute for personalized investment advice from WBI or any other investment professional. If you have questions regarding the applicability of specific issues discussed to your individual situation, please consult with WBI or your chosen professional advisor. Additional information about WBI’s advisory operations, services, conflicts of interest and fees are in the Form ADV, which is available upon request or on the SEC’s website at http://www.adviserinfo.sec.gov. WBI is a registered investment adviser. Registration of an Investment Adviser does not imply any level of skill or training.
Net of Fee Performance is net of WBI’s maximum investment management fees. This model fee approach consists of netting down 100 bps from gross returns on a monthly basis. The actual, annual investment fee rate charges shall vary (typically between 75 bps and 100 bps, but no more than 100 bps) depending upon market value of assets under management and the specific type of investment services to be rendered.
Other strategies may have different results.
S&P 500 TR Index: includes a representative sample of large-cap U.S. companies in leading industries where all cash payouts (dividends) are reinvested automatically.
You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format to any third party without the express written consent of WBI Investments, LLC.
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