AVT5ETTB Index
AVT5ETTB Index Dashboard, AVT5ETTB Dashboard
Index Dashboard
- AVT5ETTB
Alpha Vee Risk Managed All Cap Top 5 Sector ETF
- Overview
- Performance
Strategy Overview
The approach uses a systematic rules-based institutional caliber index that seeks to capture long term equity performance while seeking to minimizing market volatility.
The Index utilizes the top iShares Sector ETFs by applying a dynamic sector strength signal. The signal based on the fundamental momentum of companies in each sector to seek out the 5 sectors most likely to outperform in the period.
The market signal determines the equity exposure to the market by dynamically adjusting allocation to the iShares 7-10 Year Treasury Bond ETF (IEF) or the iShares TIPS BOND ETF (TIP) between 0% and 100% of the portfolio.
The Alpha Vee fundamental momentum approach makes the index more robust by reducing volatility.
Strategy Philosophy
This index invests in iShares Sector ETFs combined with a dynamic allocation of a Treasury bond component.
Sector ETFs: The index holds the top ranked 5 sector ETFs. Sectors are ranked based on dynamic fundamental momentum indicators and weighted according to their respective benchmark weights.
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
Together, these 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
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.