The 2ndVote Advisers Society Defended Index (SDI) includes large and mid-cap US traded companies and excludes companies that oppose 2nd Amendment rights, border security and support for law enforcement (which we refer to as “Civil Safe Society”) as evaluated by proprietary research from our affiliate, 2ndVote, Inc. (2ndVote Analytics). The methodology employed by the SDI then weights the remaining companies by utilizing a unique quantitative factor model, licensed from a third party, designed to rank companies that have financial characteristics that are expected to outperform the market in the then-current monetary regime. The resulting the SDI is replicable, investable, rules-based, and transparent. We believe that effectively managing risk is a natural outgrowth of the dynamic methodology employed by the SDI, whose approach of re-evaluating stocks across various monetary regimes produces dynamic index exposures that are not stuck in static sectors, factors, styles, or strategy bets that move in and out of favor.
The index methodology employed by the SDI is not political in nature and includes the stocks that our models indicate should produce superior performance and do not oppose 2nd Amendment rights, border security and support for law enforcement. A majority of the SDI’s constituent companies score neutral based on 2ndVote Analytics’ Civil Safe Society criterion, with the remainder scoring positive. Rebalancing is based on changes to the universe of SDI’s eligible securities and the financial metrics employed by the factor model. Changes to the SDI may take up to 60 days to implement.