The FTSE Custom Multi-Asset Stock Hedge Index incorporates non-equity asset classes – currencies, commodities, foreign sovereign debt and U.S. bonds – that have shown promise during moderate stock downturns as well as severe bear markets. The index does not use shorting or leverage. It does not employ inverse investments. Moreover, it does not rely solely on a single asset type. Instead, the index combines multiple asset classes to provide investors with an opportunity to achieve positive returns when stock market indexes are failing to do so.

The FTSE Custom Multi-Asset Stock Hedge Index is designed to minimize the risks associated with stock ownership. Yet tracking the index is not comparable to owning a “bear fund.” Bear funds look to profit from short positions on stocks or a stock market that is falling. The FTSE Custom Multi-Asset Stock Hedge Index is a basket of diversified ETF/ETN components (excluding equities). It is calculated and maintained by FTSE based on a methodology developed by Pacific Park Financial, Inc.


The index component eligibility requirements are as follows:

  1. The component must be an ETF or ETN which actively trades on a stock exchange (i.e. exchanges in New York, Tokyo, Amsterdam, London, Frankfurt, Toronto, Shanghai, Shenzhen, Zurich, Sydney, etc.)
  2. The component must be comprised of any asset class outside of equities.
  3. The component must have an AUM greater than $2.5M USD.
  4. The component must have a six month daily average value traded of at least $250K USD.
  5. The component must historically exhibit “safe‐haven” attributes, such as zero to negative rolling 3‐month correlations, during moderate to prolonged corrective periods; corrective periods are defined as broad market (S&P 500) pullbacks of at least 10%. Recent examples of such periods of time are the 2007‐2008 Financial Crisis and the 2011 Eurozone Debt Crisis.*

*The index will, in most cases, use the quantitative screening system described above. However, under special circumstances, subjective screening based on other factors may be used if Pacific Park Financial Inc. decides a component should be included or excluded. Subjective screening may be necessary in extreme circumstances, such as geopolitical, economic, natural or man-made disasters, in order to preserve the stated objective of the index.


The index components are equally weighted and are calculated by dividing the total index value after the market close on the second Friday of June and December by the number of components. The component valuations are then divided by the closing price of the corresponding component fund (ETF/ETN) on the second Friday of June and December to determine the weight of each respective component.

Changes and Review:

Components are determined by Pacific Park Financial, Inc. based on the component eligibility requirement on a semiannual basis prior to the rebalancing schedule. Implementation of component changes will coincide with the FTSE Review Schedule; thus, implementation occurs after the close of the third Friday in June and December for the open on the following Monday. Equal weighting of the components will be carried out using prices as of the second Friday and enacted alongside the review changes after the close of the third Friday. Changes are announced at least five trading days prior to the effective date.