Katie Stockton believes she has identified a promising investment avenue for individuals seeking to navigate the unpredictable ebbs and flows of the financial market. As the founder of Fairlead Strategies and manager of the Fairlead Tactical Sector ETF (TACK), she has developed a strategy that is designed to be agile, particularly in turbulent market conditions. Unlike many funds that are tied to specific indices, TACK operates with a level of flexibility that Stockton argues is crucial for investors during times of stress.

In a recent appearance on CNBC's "ETF Edge," Stockton elaborated on her investment philosophy, stating, "What we try to do is help investors leverage the upside through sector rotation, but also minimize drawdowns." She emphasized the long-term benefits of this approach: by avoiding steep declines in market value, investors can find themselves in a less challenging position when the market rebounds.

Stockton highlighted that TACK's design allows it to be particularly agile within the current market environment. The ETF employs multiple strategies rather than relying on a singular, static approach. This adaptability has been reflected in its performance since April 2, when former President Donald Trump announced a set of "reciprocal" tariffs. Since that announcement, TACK has experienced a modest decline of just over 4%, while the broader S&P 500 index has suffered a more significant loss of 6.9%.

One of the key features of the Fairlead Tactical Sector ETF is its monthly rotation among all 11 sectors of the S&P 500. For instance, Stockton noted, "We don't own technology anymore. Some of the sectors that we like to invest in have fallen out of favor." This strategy allows TACK to pivot away from underperforming sectors and capitalize on those poised for growth. As of April 16, the ETF's leading sector allocations included consumer staples, utilities, and real estate, proving that Stockton's strategy is not just reactive but also proactive in identifying potential gains.

Despite the challenges faced by many sector-focused ETFs, which are currently under pressure, TACK has managed to demonstrate resilience. As of the most recent market close on Thursday, the Fairlead Tactical Sector ETF is down 4% year-to-date, which is a noteworthy achievement given the overall market climate. In contrast, other ETFs such as the Invesco Top QQQ Trust (QBIG) which tracks the top-performing 45% of companies in the Nasdaq-100 index have seen a staggering decline of 22% in 2025. Similarly, the GraniteShares YieldBoost TSLA ETF (TSYY) has plummeted 48% since the start of the year.

Industry analysts are taking note of Stockton's strategic approach. Troy Donohue, head of Americas portfolio trading at BTIG, praised TACK for its sound investment strategy, especially during what he termed a "dramatic pullback" in the market. Donohue remarked, "TACK is a great example of how you can be nimble during these market times. It's great to see it in an ETF product that has performed really well during this recent drawdown." With its innovative strategies and strong performance in the face of adversity, the Fairlead Tactical Sector ETF may very well be a blueprint for resilient investing in uncertain times.