CORE16 Best of Breed Premier Index ETF (BOBP)

Overview

BOBP is an investment fund focused on US large-cap securities that are strategically identified to possess favorable potential for capital appreciation in the near to medium term. This investment strategy is rooted in the concept of equity skewness, which serves as a metric for predicting how the returns of various securities might deviate from average results. A security exhibiting positive skewness tends to experience more frequent small losses but is associated with fewer occurrences of substantial gains, while negative skewness indicates the opposite scenario—more frequent small gains against fewer but significantly larger losses.

The fund employs a methodology that calculates equity skewness through a moving average and evaluates how each security's returns correlate with the averages of its investment universe. Depending on whether the universe-wide skewness is positive or negative, the fund makes informed selections: it opts for stocks that exhibit positive skewness when the overall market trend is favorable and selects stocks with less negative skewness during unfavorable market conditions. Ultimately, this nuanced approach aims to mitigate the impacts of market noise and short-term volatility, providing a more stable investment strategy.

Products and Services

• Equity Skewness Analysis

  This service includes a detailed analysis of equity skewness for a wide range of US large-cap securities. Utilizing a proprietary methodology, the fund assesses how different stocks may perform relative to average expectations, helping investors make informed decisions based on skewness metrics.

• Investment Fund Management

  The core offering of BOBP is its actively managed investment fund that emphasizes the selection of the top 50 large-cap stocks based on skewness characteristics. This fund aims to maximize potential capital appreciation while maintaining a balanced approach to risk through sector diversification and bi-weekly rebalancing.

• Cash and Cash Equivalents Allocation

  In recognition of market fluctuations, BOBP allocates between 10-20% of its portfolio to cash and cash equivalents. This strategic reserve is adjusted according to proprietary indicators, allowing for flexibility and risk management in various market conditions.

• Bi-Weekly Rebalancing

  The fund employs a bi-weekly rebalancing strategy to ensure that portfolio allocations remain aligned with the latest market trends and investment objectives. This regular adjustment helps to maintain optimal exposure to selected securities while mitigating the impact of market volatility.