Name of ETF: Compass EMP U.S. EQ Income 100 Enhanced Volatility Weighted Index ETF
Benchmark Index: CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index
Ticker Symbol: CDC
Approximate Number of Stocks in this ETF: 100
Types of Stocks Included in this ETF: A selection of large-sized companies that pay high dividends. Companies are selected based on an investment strategy that includes:
- Identifies up to 100 of the highest dividend yielding stocks from the CEMP U.S. Large Cap 500 Volatility Weighted Index.
- The stocks in the index (approximately 500) are weighted on a formula based on the company’s volatility over the 180 trading days.
The index also employs a risk mitigation strategy and reinvestment strategy that includes:
- Risk Mitigation: Liquidating 75% of its securities if the index has declined over 8% from its daily highest value. This is based on the month-end price of the index.
- Reinvestment: If the index increases back (or above) to the daily highest value the index will reinvest into all securities.
- Reinvestment: If the index declines another 8% (16% total drop) the index will reinvest 25% back into the fund (50% invested).
- Reinvestment: If the index declines another 8% (24% total drop) the index will reinvest 25% back into the fund (75% invested).
- Reinvestment: If the index declines another 8% (32% total drop) the index will reinvest 25% back into the fund (100% invested).
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