WIZ Index

Bull-Rider Bear-Fighter Index

The WIZ Index is growth focused in bull markets and shifts to defensive positions if bear market conditions are indicated.

Bull Market Focus:

Growth

Bull Market Allocation:

80% Equities, 20% Bonds

Bear Market Allocation:

Shifts automatically to defensive positions

Portfolio:

8 diverse ETFs*

Portfolio Goal:

The WIZ Index seeks to improve performance by first identifying whether market conditions are bull or bear. In bull markets, the Index evaluates more than 400 ETFs monthly using growth momentum strategies to select six momentum leading equity ETFs and two bond ETFs during bull markets and four or more defensive ETFs during bear markets.

Bull Market Composition**:

Sectors 1: 20%
Sectors 2: 15%
Countries: 15%
Factors: 10%
Regions: 10%
Style Mix: 10%
Bonds 1: 10%
Bonds 2: 10%

* Due to permitted duplicate selection, the Index may at times hold as few as 6 unique ETFs.
**Actual allocations may vary.

Category

Sub-category

Sub-Category Examples

Sectors

Economic Sectors
  • Healthcare
  • Energy
  • Industrial
  • Staples
  • Discretionary
  • Technology
  • Finance
  • Bio-Pharma
  • Telecom
  • Materials

Factors

Investment Factor
  • Value
  • Growth
  • Dividends
  • Earnings
  • Size
  • Momentum

Style Mix

Investment Style
  • Large-Cap
  • Large-Cap Growth
  • Large-Cap Value
  • Mid-Cap
  • Mid-Cap Growth
  • Mid-Cap Value
  • Small-Cap Value
  • Equal Weight
  • Growth
  • Value

Global / Regions

Geopolitical Region
  • Global
  • Europe
  • Asia Pacific
  • Emerging markets

Countries

Single Countries Any Country

Bonds

Bonds
  • Mid-duration Treasuries
  • Aggregate
  • Corporate
  • Mortgage
  • Municipal
  • High-yield

Bear Market Universe:

When bear market conditions are indicated, the Index switches to a defensive bear market strategy where it generally selects a portfolio of four or more unique ETFs from the Bear Universe, which includes ETFs in the following categories:

(1) Inflation-protected treasury; (2) US Treasury; (3) Aggregate Bond; (4) Short- and Long-term Bond; (5) Corporate Bond; (6) High-Yield Bond; (7) Gold; and (8) Broad-based U.S. equity market index (seeking better returns during a bear market rebound)

The categories are viewed as general guidelines and the scope of each category is interpreted broadly. Note that the bear market strategy may include ETFs that are considered high-risk or are subject to equity market volatility, such as junk bond funds, equity funds, and broad-based U.S. equity market funds. Although the Index generally selects four unique ETFs under its bear market strategy, if bear conditions are anticipated due to excess market volatility, a single U.S. Treasury ETF may be selected.

WIZ Index Performance

Data prior to 9/1/2019 is based on simulated back-tested data

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This data represents information calculated by Solactive, AG. Past performance does not guarantee future results. Performance information should not be relied upon as investment advice, research, or a recommendation. Data prior to 9/1/2019 is based on simulated back-tested data. Note that the following Index changes have been made:

(1) On 7/22/2020 the Index algorithm was improved to assess multiple measures of market volatility to better detect and respond to Black Swan market events.

(2) On 4/29/2022 the Index algorithm was adjusted to include the use of Treasury Inflation-Protected Security (TIPS) to the Bear Universe of the Indexes and to the Bull Universe of the Indexes with respect to bond ETF category selections.

As noted above, the Index performance data prior to the inception date is back-tested data (i.e., calculations of how an Index might have performed over that time period had the Index existed) and for illustrative purposes only. Index returns are based on total returns of the underlying ETFs. This information is presented net of any fees. Back-tested results are adjusted to reflect the reinvestment of dividends and other income. Back-tested performance is developed with the benefit of hindsight and has inherent limitations. Specifically, back-tested results do not reflect actual trading. Index performance is hypothetical, based on trading at the market open of trade dates. It is assumed that an investor would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading.

Certain assumptions have been made for modeling purposes only. Changes in these assumptions may have a material impact on the back-tested data presented. No representations and warranties are made as to the reasonableness of the assumptions. This information is provided for illustrative purposes only.

Index Composition

Advanced Momentum Algorithms

It’s all about reducing the noise.

Market noise tends to obscure momentum signals. Using advanced signal processing techniques and adaptive tuning of momentum filters, the Index seeks to:

  • Detect momentum with greater clarity.
  • Provide an improved selection of momentum leaders.
  • Create cleaner signals that lead to the possibility of better decisions.

We believe momentum detection is a key part of fund selection for both bull and bear market holdings.

Market Risk Assessment

Don’t just dilute risk.

Seek to avoid it altogether. Using StormGuard™ and SwanGuard™ proprietary market risk assessment software, the Index:

  • Assesses market risk using four key metrics: price-trend, market momentum, value sentiment, and market volatility.
  • Switches to a bear market strategy when a bear market is indicated.