The Index Sponsor follows a strategy which focuses on a long-flat quantitative volatility-control global tactical financial instruments selection. The strategy deploys risk across equity, fixed income, currencies, and commodities by mainly selecting ETFs and futures. The Index Strategy, however, follows a dynamic approach across various financial instruments and therefore, there will be a tactical use of cash to meet the maximum level of volatility. Listed futures are used because of their liquid characteristics, cost-efficiency and because they allow exposure to an investment or theme different from an ETF (for example, when the algorithm recommends an extreme exposure to a sector or theme). Futures will always be fully collateralized. Money Market Funds or short-term structured products (cash settlement) might be selected, but only for cash management purposes. The Index Sponsor targets a volatility of 6-8%, which qualifies the Index Strategy as a conservative one.