ETF strategist firm CLS Investments likens portfolio performance to playing with a yo-yo while going up stairs. “In the end, the yo-yo is ultimately higher than when it started, but on the way up it can experience sharp ups and downs,” senior portfolio manager J.J. Schenkelberg wrote in a weekly market review on Aug. 25.

At the time of her report, exchange traded funds tracking major U.S. indexes had posted their worst weekly decline since September 2011. The Dow and S&P 500 each dropped nearly 6% that week. They’re still 8% and 10% off their 52-week highs, respectively.

But “keep things in perspective,” Schenkelberg says: Both indexes are still above the lows seen in October, less than a year ago.

Here’s how two ETF strategists — who put together managed portfolios with at least 50% of assets in ETFs — are positioning products.

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