Levered Index
Enhanced S&P 500 Exposure with Dual-Signal Framework
Investment Strategy
The Levered Index model is designed for advisors seeking enhanced exposure to the S&P 500 with built-in risk management. The strategy uses a dual-signal framework — combining THOR's standard proprietary signal with a faster-responding signal — to determine positioning across three distinct states.
When both signals indicate risk-on, the portfolio allocates to both index and leveraged index ETFs, providing up to approximately 140% S&P 500 exposure. When the standard signal remains risk-on but the fast signal turns risk-off, the portfolio shifts to 60% index exposure and 40% buffer ETF exposure, maintaining market participation with downside cushioning.
When both signals turn risk-off, the portfolio moves to 100% buffer ETF exposure, seeking downside mitigation while maintaining some upside participation potential. This three-state framework allows the model to be aggressive when conditions warrant, moderate when uncertainty rises, and defensive when risk is elevated.
Key Features
Dual-Signal Framework
Two proprietary signals provide more nuanced risk assessment than single-signal approaches
Enhanced Upside
Up to ~140% S&P 500 exposure when both signals confirm risk-on conditions
Buffer Allocation
Buffer ETF allocation seeks downside cushioning with upside participation when risk is moderate
Three-State Design
Graduated positioning — aggressive, moderate, and defensive — instead of binary on/off
Levered Index — Frequently Asked Questions
The Levered Index model uses a dual-signal framework combining THOR's standard signal with a faster-responding signal. When both are risk-on, the portfolio has up to ~140% S&P 500 exposure. When the fast signal turns off, it shifts to 60% index / 40% buffer ETF. When both are off, it moves to 100% buffer ETF, seeking downside mitigation.
When both signals indicate risk-on, the portfolio allocates to both index and leveraged index ETFs, providing up to approximately 140% S&P 500 exposure.
Buffer ETFs seek downside mitigation while maintaining some upside participation potential. In the Levered Index model, buffer ETFs serve as the defensive position when risk signals are elevated.
Important Disclosures
All model performance is hypothetical, back-tested, and net of a 0.49% management fee. Past performance is not indicative of future results. Hypothetical performance has inherent limitations — unlike actual performance records, simulated results do not represent actual trading. All investments involve risk, including possible loss of principal. There is no guarantee that the strategy will achieve its objectives. For complete hypothetical performance disclosures, please review our Disclosures page.
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