Additionally, the constituent holdings are grouped into 10 sectors based on the HOLT stock selection framework. The long index includes 10% of each sector and top 34% of each region are held in a long position. Meanwhile, the lowest ranked stocks in the same sector and region are paired with the long positions through short allocations.
Sector allocations include: Basic Materials 9%, Communications 13%, Consumer Cyclical 17%, Consumer non-cyclical 13%, Diversified 1%, Energy 8%, Financial 17%, Industrial 12%, Technology 3% and Utilities 5%.
Potential investors should be aware that ETNs are unsecured debt obligations, which are subject to the credit risk of the issuer.
Max Chen contributed to this article.