LCEUSD is designed to replicate the performance of the US Equity ETF Blend strategy. The strategy seeks to participate in rising equity markets while limiting downside exposure during periods of heightened volatility. It combines three complementary risk-management disciplines focused on market, inflation, and sector conditions..

The strategy follows a systematic, top-down investment process grounded in Fundamental Momentum research. Market, inflation, and sector signals are evaluated quarterly to establish portfolio positioning through a consistent and disciplined framework.

Sector allocation is determined using a proprietary model that ranks the ten primary equity sectors based on fundamental momentum and quality indicators. Every three months, the strategy evaluates sector ETFs representing the 500 largest U.S. companies by market capitalization and selects the five sectors demonstrating the strongest potential for continued fundamental acceleration.

Under normal market conditions, the portfolio generally holds five sector ETFs and one bond ETF, with allocations determined by the strategy’s signals. When risk conditions deteriorate, the strategy may shift to a fully defensive position consisting of a single bond ETF.