LFEQ Profile
The VanEck Long/FlatTrend ETF seeks to deliver capital appreciation by adhering to a dynamic investment strategy that adjusts based on proprietary market signals. Under normal circumstances, the fund invests at least 80% of its total assets in securities that track or are components of its benchmark index. This index is governed by a rules-based model, which is designed to reflect the performance of a strategic investment approach developed by Ned Davis Research, Inc., in collaboration with CMG Capital Management Group, Inc.
The underlying index employs a proprietary model that integrates quantitative analysis to generate trade signals. These signals guide the fund's allocation decisions, allowing the index to switch between a fully invested equity position and a complete cash position. This approach aims to minimize potential losses during adverse market conditions by providing flexibility to adjust exposure based on the model's signals. This strategy is particularly useful for navigating volatile or uncertain market environments.
The index's methodology involves assessing various market indicators and economic factors to determine the optimal level of equity exposure. When market conditions are favorable, the model signals a higher allocation to equities, enabling the fund to capitalize on potential growth. Conversely, during periods of market stress or decline, the model may recommend shifting to a cash position, thereby reducing exposure to market risk.
Managed by VanEck, a prominent global asset management firm with expertise in innovative investment strategies, the fund benefits from advanced research and market insights. VanEck's approach to managing the fund leverages its deep understanding of market trends and quantitative analysis to execute its strategy effectively. By integrating a flexible allocation model and rigorous risk management techniques, the VanEck Long/FlatTrend ETF aims to provide investors with a sophisticated tool for navigating varying market conditions and pursuing long-term growth.
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