Analysis

Key stats

About VanEck Long/Flat Trend ETF

LFEQ follows an index that uses technical signals to determine the funds allocation between the S&P 500 and Treasury bills. The stated purpose of this is to limit potential loss associated with adverse market conditions. The index calculates a bullish or bearish trade signal, which includes both direction and magnitude, for each industry group within the S&P 500. This signal is determined by combining a trend-following indicator (based on momentum and moving averages) with a mean-reversion indicator. These industry trade signals are aggregated to determine LFEQs split between equity and T-bills. The fund may hold one of four specific equity allocations: 100%, 80%, 40%, and 0%. The index evaluates the trade signal model daily, and the fund may change its allocation as often as daily.