Salt Technology Focus Index

Provides exposure to technology and biotech sectors while seeking to underweight more volatile segments with a unique allocation scheme.

Overview

The Salt Technology Focus Index provides exposure to 4 ETFs focused on different technology and biotech themes – Technology Select SPDR (XLK), iShares PHLX Semiconductor ETF (SOXX), First Trust Dow Jones Internet Index Fund (FDN), and SPDR S&P Biotech ETF (XBI). Rebalanced monthly, the four ETFs are ranked by their 6-month realized volatility and then weighted in “reverse rank” order, putting the most weight on the least volatility ETF of the group.

This rank-weighting methodology is designed to create more active exposure to a desired factor by systematically allocating more weight to its top- or bottom-ranked components. By targeting low volatility, D29the index seeks to underweighting the more volatile constituents while maintaining exposure to technology and biotech sectors that have experienced strong growth in recent years.

The Index is used as a component of the Credit Suisse Tech Edge Index, sub-licensed to American Equity Life Insurance Company for use in fixed index annuities.

Key Facts

Ticker SFTF
Type Total Return
Weighting Reverse Rank
Rebalancing Daily
Base Date Feb 1, 2002
Inception Date Jan 14, 2021
Calculation Agent Salt Financial Indices LLC

Performance