Cedar US Large Cap Dynamic Beta index
Brings dynamic factor investing into play. Reactive to leading economic conditions
Being completely passive is old. Being completely on the side of active management is risky. Our solution is a dynamic Beta exposure to US Large Cap Stocks that sticks to the principles of passive investing while integrating a dynamic weighting of the Beta factor. Based on the reading of a Leading Economic Indicator, High Beta stocks in the broad market index are scaled-up or scaled-down.
In downturns, High Beta stocks feel like a burden on passive investing. The strategy reduces unnecessary exposure to High Beta stocks in downturns while scaling-up the remaining constituents of the index. In a Bull market, the strategy scales-down the low Beta stocks and increases the weighting of High Beta Stocks.