DF Tactical 30 ETF(AMEX:DFTT)

DFTT is passively managed, following a rules-based approach to invest in the top 30 momentum leaders within the 100 largest US stocks. The selection process uses an exponential moving average (EMA), which emphasizes recent price data to identify stocks with the strongest price momentum. Securities are equally weighted. To manage downside risk, the index employs a tactical overlay that regularly monitors long-term EMA crossovers. During negative market trends, equity positions are exited and reallocated to short-term US Treasuries or Treasury ETFs. Conversely, when intermediate-term trends improve, it re-enters the equity market. Because of its momentum-based approach, DFTT is more sensitive to market shifts and experiences frequent trading, potentially leading to a higher portfolio turnover rate. The index is reconstituted and rebalanced quarterly to reflect current momentum trends.