INVESTMENT PROCESS

Investment Process

Hull utilizes a three-step process to anticipate market direction and appropriately position the portfolio.

Step 1 – Anticipate Market Direction
HTUS utilizes economic, fundamental, technical, event-driven, seasonal, and sentiment factors, coupled with statistical analysis to anticipate market direction.

Step 2 – Create Market Sentiment Score
HTUS creates a daily Market Sentiment Score which reflects the firm’s outlook on market direction.

Step 3 – Position Portfolio
HTUS positions its portfolio based on the Market Sentiment Score.

Market Sentiment Score
The Market Sentiment Score incorporates HTUS' analysis of market drivers to anticipate market direction and position the portfolio appropriately. Each spot on the Market Sentiment Meter corresponds to a unique portfolio allocation. The fund’s exposure to equities may range from 100% short to 200% long.These exposures seek to allow investors to participate in bull markets while potentially avoiding and even benefiting from bear markets.

Market Sentiment Meter Current: 94

Swipe left on the table below to see more information.

Score Allocation Outlook Equity Exposure Intuition
190 90% SPY
100% Long Futures
10% Cash
Extremely Bullish 190% - Expectations for very strong equity appreciation.
- Portfolio positioned to experience approximately twice the equity market return.
- Profit from strong equity market performance.
150 90% SPY
60% Long Futures
10% Cash
More Bullish 150% - Expectations for strong equity appreciation.
- Portfolio positioned to experience approximately 1.5 times the equity market return.
- Profit from strong equity market performance.
100 90% SPY
10% Long Futures
10% Cash
Bullish 100% - Expectations for average to strong equity appreciation.
- Portfolio positioned to experience equity market return.
50 50% SPY
50% Cash
Mildly Bullish 50% - Expectations for below average equity appreciation.
- Portfolio positioned to experience partial equity market return.
0 100% Cash Neutral 0% - Expectations for flat equity market.
- Portfolio positioned to avoid negative downturn.
-50 50% Short Futures
100% Cash
Bearish -50% - Expectation for negative equity returns
- Portfolio positoned to avoid and profit from downturn
- Profit from market downturn
-100 100% Short Futures
100% Cash
Extremely Bearish -100% - Expectations for negative equity returns.
- Portfolio positioned to avoid downturn and experience approximately one time the inverse return of the equity market.
- Profit from market downturn.

Exchange Traded Concepts, LLC serves as the investment adviser. HTAA, the investment sub-adviser, and Vident Investment Advisory LLC, the trading sub-adviser, serve as sub-advisers. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates. Check the background of SIDCO on FINRA’s BrokerCheck.