Low Volatility SDQ
Three-Index Rotation with Cascading Risk Management
Investment Strategy
The Low Volatility SDQ model trades the three largest U.S. equity indices — the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 — using an equally weighted 33/33/33 allocation across each index.
THOR's proprietary technology evaluates each index independently and dynamically rotates allocation toward the best-performing index while systematically de-risking positions that signal elevated risk. The cascading structure ensures risk is managed progressively rather than as a binary on/off switch.
The risk-off cascade works as follows: when one index turns risk-off, the remaining two split the allocation 50/50. When two indices turn risk-off, the portfolio moves to 50% in the remaining index and 50% cash. When all three signal risk-off, the portfolio moves to 100% short-duration treasuries.
Key Features
Three-Index Diversification
Broad U.S. equity exposure across the three most followed market indices
Cascading De-Risk
Progressive risk reduction as individual indices signal elevated risk conditions
Low Minimum
Accessible $5,000 minimum makes this strategy available to a wide range of accounts
Dynamic Overweighting
Best-performing index receives increased allocation as weaker indices rotate out
Corresponding ETF Available
The Low Volatility SDQ strategy is also available as an actively managed ETF — the Thor SDQ Index Rotation ETF. The ETF tracks the Thor SDQ Rotation Index.
Low Volatility SDQ — Frequently Asked Questions
The Low Volatility SDQ model trades three major U.S. equity indices — the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 — with equal weighting and cascading risk management. As individual indices signal risk-off, positions cascade into short-duration treasuries.
When one index turns risk-off, the remaining two split 50/50. When two are risk-off, the portfolio goes 50% remaining index and 50% cash. When all three signal risk-off, the portfolio moves to 100% short-duration treasuries.
The minimum investment for the Low Volatility SDQ model is $5,000, making it one of THOR's most accessible strategies.
Yes. The THIR (Thor SDQ Index Rotation ETF) follows the same strategy as the Low Volatility SDQ model, tracking the Thor SDQ Rotation Index.
Important Disclosures
All model performance is hypothetical, back-tested, and net of a 0.20% 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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