The Adaptive Wealth Strategies U.S. Factor Index was built with the end client in mind, and replicated a strategy we were already using in our investment accounts.

Looking at minimum volatility, value, and momentum, we simply looked at how they performed compared to one another.

The end methodology will own either: two factors at one time, equally weighted 50%/50% or all three factors with a weighting of 40%/40%/20%.

Our methodology will look to eliminate or underweight the best performing factor over a specified trailing time period.

Our goal is to own the factors that are overly stretched on the downside and avoid the ones that are overly stretched on the upside. This provides the opportunity for the under-performing factors to appreciate and hopefully avoid the factor that is about to fall.