The 2VA American Freedoms Index (AMF) only invests in large and mid-cap US companies. AMF excludes companies that oppose, censor or restrict First Amendment rights concerning religion, expression, assembly, the right to petition, and other fundamental constitutional rights (which we refer to as “Basic Freedoms”) as evaluated by unique proprietary research developed by 2ndVote Research (2VR). The AMF Index then rates the remaining companies employing a unique financial model designed to identify those companies that have the financial characteristics to outperform the market in the then-current monetary regime. The proprietary financial model 2VA employs is licensed from Economic Index Associates. The resulting model index is replicable, investable, rules-based and transparent. Effectively-managed risk is a natural outgrowth of the dynamic financial model—the approach of re-evaluating stocks across regimes produces dynamic portfolios that are not stuck in static sectors, factors, styles or strategy bets that move out of favor.
The financial model is not political in nature – the AMF index includes the stocks that our financial methodology indicates will be the best performing of those that prioritize their duties to shareholders over political activism or social policy agendas that oppose basic freedoms. Over 90% of AMF portfolio companies are Neutral on 2VR’s Basic Freedoms criterion, with the remainder scoring Positive.
This results in profit-oriented, business-focused companies (that are mostly neutral) for the AMF Index—with the highest modeled return expectations.
Rebalancing is done on at least a quarterly basis based on changes to the universe of AMF eligible securities and the financial metrics employed by EIA. Changes to the index may take up to 60 days to implement.