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.

Currently available are the following indexes:

Dow Jones LSP Position Sizing Equal Sector U.S. Large-Cap 50 Index℠

The equity segment of the index consists of 50 large-cap component stocks that are selected in equal numbers based on market capitalization from each of ten industries defined by Dow Jones Indexes’ proprietary sector classification system.

Dow Jones LSP Position Sizing U.S. Large-Cap 250 Index℠

The equity segment of the index consists of the 250 largest stocks contained in the Dow Jones U.S. Large-Cap Total Stock Market Index.

Dow Jones LSP Position Sizing U.S. Mid-Cap 250 Index℠

The equity segment of the index consists of the 250 largest stocks contained in the Dow Jones U.S. Mid-Cap Total Stock Market Index.

Dow Jones LSP Position Sizing U.S. Small-Cap 250 Index℠

The equity segment of the index consists of the 250 largest stocks contained in the Dow Jones U.S. Small-Cap Total Stock Market Index.