This New ETF From THOR Provides Dynamic Exposure to U.S. Indices With Flexible Risk Mitigation

How does THIR ETF work

THOR Index Rotation ETF (THIR) aims to achieve its investment objective by investing in securities tied to three major U.S. indices: the S&P 500, Dow Jones Industrial, and NASDAQ 100. These indices are represented by U.S. index exchange-traded funds (ETFs) and form the core of the rules-based index that THIR tracks.

The primary goal is to provide exposure to U.S. large-cap equities while reducing volatility by avoiding ETFs and indexes that THOR Analytics, LLC, dba THOR Financial Technologies, LLC (the "Adviser"), identifies as being in a downtrend.

The index monitors the price trends and historical volatility of these three ETFs over a medium-term period (three to six months). Using a proprietary algorithm, it evaluates each ETF weekly to determine if it is in a “risk on” (buy) or “risk off” (sell) state.

Only those marked as "risk on" are included in the index. When all three indexes are "risk on," the index is equally weighted at 33.3% each. If one or more are "risk off," the allocation adjusts, with up to 50% going to any "risk on" index, and the remaining balance going to cash or cash-equivalents.

During prolonged market declines, the index may allocate up to 100% to money market funds, cash alternatives, or other ETFs.

Why you should consider THIR ETF

Investing in the THIR ETF offers several advantages. It provides equal exposure to the three major U.S. indices—the S&P 500, NASDAQ 100, and Dow Jones Industrial—giving investors broad coverage of large-cap equities.

What sets THIR apart is its flexibility to adjust during volatile market periods. Using a dynamic strategy, it can shift between the indices or move into cash to protect against losses during downturns. This built-in risk mitigation makes it a great complement to traditional passive large-cap equity investments. By automating sell decisions through a computer-driven process, it also reduces the pressure on advisors from clients during market drops.

Typically, THIR fits well as 20-25% of a U.S. large-cap portfolio, providing a balance of growth potential and protection in uncertain markets.

About THOR Financial Technologies

THOR Financial Technologies is a forward-thinking asset manager specializing in computer-driven investment strategies with a strong focus on risk management and protection. Offering a diverse suite of model portfolios, THOR enables financial advisors to access these strategies either directly or through Turnkey Asset Management Platforms (TAMPs). Additionally, THOR is expanding its offerings with a growing lineup of ETFs designed to provide innovative solutions for a wide range of investment needs. Advisors seeking distinct, differentiated investment options often turn to THOR to deliver unique and meaningful solutions that align with their clients’ financial goals. With a commitment to innovation and protection, THOR continues to be a trusted partner for advisors looking to enhance their portfolios with cutting-edge strategies.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.