The Power Momentum Index Fund tracks the W.E. Donoghue Power Momentum Index. The Power Momentum Index is a rules-based index calculated by Standard & Poor’s Custom Indexes. The index is predicated upon the S-Network Sharpe Ratio Large Cap Index (SHRPX). The index employs multiple intermediate term tactical overlays to determine whether to be in a bullish or defensive posture by sector.
The tactical overlays will shift the assets to short term Treasuries predicated upon technical analysis should market conditions warrant. When in a bullish posture, the index methodology selects 50 stocks derived from ten of the GICS sectors that make up the Standard & Poor’s 500 Index which offer the highest risk-adjusted returns as of the last trading day of calendar quarter.