Grouping historically correlated components seeks to minimize false trading signals.




  • The 24 components of the TVI® are grouped into 18 sub sectors
  • Grouping historically correlated components seeks to minimize false trading signals with the objective of creating a more consistent, robust return profile


These are the approximate market sectors and sector weightings included in the TVI® as of the beginning of each year (assuming the energy sector is long). The TVI® individual market components, sectors, and related weightings, as well as other aspects of the calculation of the TVI®, are subject to change at any time.



  • Sector weights are reset monthly to their base weights. Most sectors implement the rebalance (in other words, "roll") over a single day, which is the last business day of the month. Effective as of the market close of each index component on January 31, 2014, certain index components implement the rebalance over several days.
  • Monthly rebalancing is motivated by three drivers:
    • Attempts to reduce volatility: more commodity weighting means more volatility
    • Provides potential for consistent profit taking in cyclical investments
    • Attempts to prevent concentration risk
  • Individual component weights are allowed to fluctuate within each sector and are reset to their base value annually. If a sector implements the rebalance over a single day, the individual components in that sector reset to their base weight (in other words, "roll") over a single day. Likewise, if a sector implements the rebalance over several days, the individual components in that sector reset to their base weight over the same number of days.


The TVI ® methodology is available here. Appendix A contains a list of amendments made to the index since its inception. Changes to an index methodology may have material impact on the results of the index, whether positive or negative.

This description is intended solely to provide an introduction to the TVI® and further details are available upon request. No assurances can be made that the TVI® will achieve its objectives or that losses will be avoided. Past performance is not necessarily indicative of future results.

Investors cannot invest directly in the TVI®. One of the risks associated with the TVI® is the complexity of the different factors which contribute to its results, as well as its correlation or non-correlation to other asset classes. The TVI® could decline in a wide range of different market scenarios, including ones in which other financial products rise substantially. Any factors which contribute to "trading ranges" (in which there is a lack of sustained, directional price movements in many markets) or “whipsaw” markets (in which price movements reverse suddenly or repeatedly) are likely to be adverse to the TVI®’s trend-following methodology. Investment products utilizing the TVI® are speculative and involve a substantial degree of risk. Products that utilize the TVI® should be considered long-term investments; over the short-term there is a much greater possibility that the products may decline substantially, causing significant losses. See “Summary of Risk Factors” in the Terms of Use.

EAM Partners L.P. itself does not provide portfolio management services or any other form of investment advice. In particular, EAM Partners L.P. itself does not direct client accounts or provide commodity trading advice based on or tailored to the commodity interests or cash markets or other circumstances of a particular client. None of the information or material on this website is intended, or should be used, as any form of advice or recommendation. All information provided herein is subject to change without notice.