iQ Canada ETF Momentum Model

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Investment Objective

The iQ Canada ETF Momentum Model seeks to outperform the S&P TSX Index by selecting Exchange Traded funds based on technical and risk-related criteria.

Process

The Model implements the following rules-based process:

• Begin with a starting universe of Exchange Traded Funds trading on Canadian exchanges.

• Remove all leveraged Exchange Traded Funds.

• Eliminate any Exchange Traded Funds whose previous month-end price is less than its 3-month simple moving average.

• Sort the remaining Exchange Traded Funds by trading volume and select the top twenty-five.

• Sort the remaining 25 Canadian-listed Exchange Traded Funds by upside capture ratio, relative strength and low maximum draw-down and select the best five.

The Model repeats this process on a Seasonal quarter basis (every Feb, May, Aug & Nov).