Index Daily Highest Values
How do Long/Cash ETFs potentially mitigate downside risk?
- Track indexes that follow a rules-based strategy that adjusts allocations between stocks and cash (see chart)
- Unemotional, systemic and potentially tax efficient process to reduce equity exposure and reinvest as prices decline
- Allocations are based on month-end index values relative to each index's all-time high closing value; Reallocations are made at the close of the first trading day of the next month
- ETFs reinvest into equities based on index drawdown levels OR when month-end index values close above initial reallocation levels, relative to each index's all-time high closing value.
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