Overview

The Dow Jones LSP Position Sizing Indexes℠ take a dynamic approach to measuring equity markets by allocating index component weights between an equity segment and a cash segment represented by Treasury Bills, where the allocation between the two segments is determined based on a proprietary quantitative algorithm.

The proprietary algorithm is a rules-based application of an investment strategy known as Leverage Space Portfolio, which was created by LSP Partners, LLC. The strategy aims to maximize the probability of positive performance, rather than seeking to maximize performance, by employing a risk-control process focused on drawdown management.

Weighting reallocations are triggered by price-level fluctuations of index component stocks, such that when a component stock price hits a predefined upper limit, its weighting is redistributed to cash, and when a component stock price hits one of multiple predefined lower limits, its weighting increases based on a specified percentage.

The first index launched in this series is the Dow Jones LSP Position Sizing Equal Sector U.S. Large-Cap 50 Index℠, in which the equity segment consists of 50 large-cap stocks selected in equal numbers from ten industries.