The Shiller Barclays CAPE® US Sector Risk Controlled 10% USD Total Return Index (the Index) is a rules-based equity index. A rules-based approach removes emotions, decisions and the need to time the market. The Index applies well-established principles for asset selection and allocation with a goal of providing positive long-term returns.

Each month, a defined set of rules is used to invest in four market sectors of the U.S. economy. Each day, the Index has the ability to allocate a portion to cash and a portion to the Shiller Barclays CAPE® US Sector Total Return Index based on the demonstrated stability of the equity market to help reduce potential risk and increase potential long-term returns. Two core principles are applied for sector selection and allocation:

The CAPE® ratio is a tool developed by Professor Shiller to identify assets that appear to be undervalued. The CAPE® ratio compares the current price to the average earnings over 10 years, adjusting for inflation. A lower CAPE® ratio is considered to be an indicator that an asset is undervalued. The Shiller Barclays CAPE® US Sector Total Return Index relies on a modified version of the classic CAPE® ratio called the Relative CAPE® Indicator.