CDC looks for income in the large-cap space, with an eye toward avoiding downside via a variety of safety features. It starts with the basket held by its sibling fund CFA: 500 names ranked by market cap and screened for quality in the form of recent positive earnings. Then it ranks them by dividend yield and grabs the top 100 names for the basket but weights them by low volatility. However, when market conditions drop and the index falls 8% or more from its all-time closing high, it can move to 75% cash holdings. The index is reconstituted every March and September.
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