A Strategic Way to Hedge Against Potential Market Declines
Trend Analysis leverages long- and short-term trends to capitalize on momentum when markets are moving higher and to reduce exposure when markets are declining.
The Index also includes a Risk Management Strategy that combines a 100% long Equity Strategy (the selected equity market sectors) with a 100% short position in a broad equity market index in an effort to hedge against market risk when the broad market is declining.
ADVANCED TREND ANALYSIS AND RISK MANAGEMENT
These innovative mechanisms built into the Index construction seek to maximize value
while minimizing downside risk across market conditions.
When the Trend Analysis is positive, the Index is always in some combination of the Equity Strategy and Risk Management Strategy to seek a balanced return.
When the Trend Analysis is negative, the Index allocates all assets into the Risk Management Strategy.
When Index volatility is low, the Index allocates up to a maximum of 150% to the strategy; as Index volatility increases, a cash allocation is added to maintain the volatility target.