Allocate Smartly (Blog)

Why TAA Is Performing Well Now: Outperformance Attribution

Tactical Asset Allocation (TAA) strategies have outperformed the traditional 60/40 benchmark throughout 2025 and into early 2026. A detailed attribution shows 57% of the excess return stems from the diversified asset mix TAA typically holds, while 43% comes from active market timing. Quarterly analysis reveals that Q1 2025 benefited from asset composition, Q2 suffered from overly conservative positioning, and Q3‑Q4 saw timing gains via gold and international exposure. In 2026, both the asset mix and timing have continued to drive strong relative performance.