The EQM Pinnacle Focused Opportunities Index is designed to provide focused, risk-managed equity exposure.
SAN DIEGO–(BUSINESS WIRE)–In collaboration with Springfield, Missouri-based Pinnacle Dynamic Funds, index development firm EQM Indexes LLC has launched a groundbreaking new index, the EQM Pinnacle Focused Opportunities Index (FCUSIDX).
The index maintains full focused equity participation during normal market conditions. Pinnacle’s proprietary stock selection model identifies the top 30 equity selections monthly from the universe of ranked stocks by scoring a combination of the following factors:
- Relative Strength
- Positive Earnings Revision.
During higher risk market conditions, the index will participate and protect by diversifying its exposure to be positioned either in 75 percent stocks and 25 percent U.S. Treasury Bond ETFs or 50 percent stocks and 50 percent Treasury Bond ETFs, depending if one or both of Pinnacle’s market risk algorithms is negative.
The EQM Pinnacle Focused Opportunities Index employs a concentrated, rules-based process in an attempt to deliver replicable, risk managed, equity index outperformance over time. The index significantly outperformed its U.S. market benchmark in the 10+year backtest simulation from September 2002 to November 2022.
Pinnacle’s Chief Investment Officer, Paul Carroll, says, “We are excited to partner with EQM Indexes to launch this index product, and provide investors with this dynamic index strategy designed to help successfully navigate various market conditions.”
Top index constituents include: First Solar, Constellation Energy, Signify Health, Enphase Energy, and Nutanix (as of Dec. 1, 2022).
The index has been licensed as an Exchange Traded Fund (ETF) by Tidal ETF services and is expected to be available for investment by the end of this year or early in 2023.
EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 30 years in the investment industry, our index design expertise spans a wide range of asset classes and financial instruments. We partner with issuers and work jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. EQM Indexes LLC also assists firms on a fee basis to design and implement their index ideas.
Pinnacle Dynamic Funds
Pinnacle Dynamic Funds is a division of Pinnacle Family Advisors, LLC. Pinnacle Family Advisors, LLC is a Registered Investment Advisory Firm headquartered in Springfield, MO. Pinnacle serves as the Adviser to the Pinnacle Sherman Multi Strategy Core Fund.
EQM Pinnacle Focused Opportunities Index
The EQM Pinnacle Focused Opportunities Index (“FCUSIDX” or the “Index”) is an index of Pinnacle Family Advisors, LLC and is calculated and published by Solactive AG. The index seeks to deliver, over 24-36 month rolling time frames, risk managed better-than-index returns. It attempts to accomplish this by investing in 30 U.S. large and/or mid-cap stocks selected by Pinnacle’s stock selection model criteria, which is recalculated and rebalanced on a monthly basis. It also incorporates Pinnacle Dynamic Funds’ market risk algorithms to limit exposure to these stocks during times the algorithms identify as higher risk equity market environments. During these times the index also invests in U.S. Treasury bond ETFs.
Founder and CEO
EQM Indexes LLC