AVT5EQTB Index
AVT5EQTB Index Dashboard, AVT5EQTB Dashboard
Index Dashboard
- AVT5EQTB
Alpha Vee Risk Managed Large Cap Top 5 Sector Equities
- Overview
- Performance
Strategy Philosophy
This risk managed index invests in US equities with market capitalization over $5B. The index has both an equity and a Treasury bond component.
Equities: The index holds 50 positions. The index holds the top scored equities of the top ranked 5 sectors. The top 5 sectors are determined based on dynamic fundamental momentum indicators and weighted according to their respective benchmark weights. Stocks from each of the selected sectors are ranked based on a sector multi-factor model. Equities are rebalanced every 3 months.
Treasury Bond: The index adjusts the allocation each quarter to the iShares 7-10 Year Treasury Bond ETF or the iShares TIPS BOND ETF (TIP) between 0% and 100%. The variable allocation is determined according to a proprietary fundamental momentum based indicator that scores the quality and value of the overall market.
Portfolio Construction from an Investment Thesis Point of View
The index is constructed by using a top down approach:
Market exposure → Inflation RM → Sector exposure → Stock selection.
Together, these four components strive to deliver better returns while mitigating risk in each level:
Market Exposure: Dynamically manage allocation of iShares 7-10 Year Treasury Bond ETF in bear markets.
Inflation Risk Management: Determines which BOND ETF to select. IEF is selected when the inflation rate is low, and TIP is selected when the inflation rate is elevated.
Sector Exposure: Seek top graded sectors
Stock Selection: Select the highest fundamentally ranked stocks in each sector by applying sector multi-factor models.
Licenses to use the Index as the underlying value for derivative instruments are issued to stock exchanges, banks, financial services providers and investment houses by Alpha Vee Solutions Ltd. . Please contact [info@alphavee.com|mailto:info@alphavee.com].
Licenses to use the Index as the underlying value for derivative instruments are issued to stock exchanges, banks, financial services providers and investment houses by Alpha Vee Solutions Ltd. . Please contact info@alphavee.com.