CDC ETF Seeks Lower Volatility Through Dynamic Equity Exposure
-
CDC is an ETF that seeks to provide returns tracking an index that reduces exposure to equities during market declines and reinvests when prices fall further or rebound.
-
The fund has $1.1 billion in assets and charges a 0.38% expense ratio, which is moderately high compared to other ETFs.
-
CDC tries to reduce volatility through stock selection focused on high dividend, low volatility companies and through a rules-based market timing approach.
-
Historically, CDC has delivered solid risk-adjusted returns compared to broad market and low volatility ETFs.
-
Currently CDC is positioned defensively with 76% in cash, but equity exposure likely to increase with any signal change in the market timing model.