IALT And CTAP: 2 ETFs That Are On My Watchlist For Potential ZEUS Inclusion In 2027

I am always eager to learn ways to improve the ZEUS fund that funds my family and the company (for now), and recently, Glenn asked me what I think of the iShares Systematic Alternatives Active ETF (IALT). I put my research team on it, and they produced a very comprehensive, easy-to-understand memo that I will include in this report. But here’s the reason why I am so excited about IALT as well as CTAP (which I discussed a bit previously and will be tracking closely because they represent 2 ETFs out of 4 that combine to create what I call a hovercraft portfolio. ZEUS and the Search For A Hovercraft Portfolio I have spent 13 years researching investing and asset allocation in order to create the ZEUS investment strategy that is 50% managed futures, and 25% growth, and 25% value, targeting minimally correlated tickers that result in a hovercraft portfolio. Something that has good returns, as good as the market or better, with minimal or even positive returns in a downturn. Source: Bloomberg In March, when the market was down 9.8% at the March 30th bottom, ZEUS was up 4% that month, and we were among the top performing hedge funds in Q1 according to Bloomberg data. That was because of being 56% hedged including 16% negative convexity ETFs. TAIL, BTAL, and SQQQ They are designed to go up because the stock market is falling. Long-term, they generate -7% CAGR returns (for the basket of ETFs we were using) The Search For The Holy Grail Of Investing Source: Bloomberg The returns for ZEUS have been stellar, and for the first two years, it’s been largely AI-driven, a secular bull market, which is why the Ultra ZEUS returns, the +4% in a -10% market, are so impressive. The returns are driven by simple asset allocation, rebalancing, and fine-tuning the asset mix based on macro conditions as determined by our economic and market valuation algos, overseen by AGIOS. Augmented Governance and Intelligence Operating System The system is actually named itself (Systems Architect Janus running on Gemini 2.5 Pro to be precise) Also, the acronym is AGI…OS and that’s super nerdy and meta😉 But the goal is always to simplify everything (that’s why AI is here, to automate and simplify and let us focus on loving each other and living our best lives). So that’s why I am always trying to find ways to replicate ZEUS (which requires a lot of background research on my part) with ETF solutions. Let’s See Why CTA & IALT Are So Exciting (Then I’ll Tell You About Them) As of 4/30 Pre-market ZEUS is up 17% YTD, and its volatility profile has been excellent. Let’s see what happens if we combine these 2 ETFs. Since Jan 2026 (Both ETFs launched in Dec) VERY preliminary data BUT the results so far are promising and compelling and worth watching Ultra ZEUS was rebalanced to ZEUS Plan C on April 8th. What Happens After The Correction Ends? Ultra ZEUS Plan C (My Family's Portfolio For The Next Year) The Math Is Mathing In Rising Markets And Falling Markets…because it’s just math😉🥳 I’ll cover the Hyperscaler earnings in tomorrow’s report (spoiler alert: all 4 of them beat expectations, and reconfirmed AI spending (or raised it like Meta). OpenAI: $25 billion Annual run rate revenue (growing 150% CAGR per management) Anthropic: $30 billion ARR (growing 10X per year for 3 years, up 3X in 3 months) Microsoft AI: $37 billion, growing at 123% The point is that I’m not a wizard; I’m someone who is tracking the data closely and acting on it after my AGIOS system confirms how it’s optimal to do so. OK Back To This Then😉 The key metric to watch for a hovercraft portfolio is the upside and downside capture ratio. How much of the market’s upside in a rising market does your portfolio capture? How much of the downside in a falling market? S&P is by definition 100% of the upside with 100% of the downside, and the 60/40 stock/bond retirement portfoli