The ValueShares U.S. Quantitative Value ETF (Pending:QVAL) will be an actively managed fund, offering investors access to an index of undervalued companies, selected using forensic accounting, valuation and quality screens.
"While the Fund will invest in approximately 50 U.S. equity securities as determined by its quantitative value factors, the quantity of holdings in the Fund will be based on a number of factors, including the asset size of the Fund and the number of companies that satisfy the Adviser’s quantitative measurements at any one time," as stated in the prospectus.
The prospectus also states that "the fund may invest in securities of companies in any industry and of any market capitalization," leaving the investment options open for the team at Alpha Architect.
State Street Corporation's (NYSE:STT) new fund, the SPDR SSgA Risk Aware ETF, is designed to provide investors with competitive returns, compared to the broad U.S. equity market, and capital appreciation.
“The SPDR SSGA Risk Aware ETF (NYSEARCA:RORO) is targeted at providing investors an innovative solution for capitalizing on risk-on and risk-off fluctuations in the US equity market,” said Scott Ebner, senior managing director and global head of product development and research at State Street Global Advisors, in a statement.
Managed by SSGA’s Active Quantitative Equity Group, the fund will employ their quantitative market risk measurement model to identify, quantify and benefit from risk factors moving the markets at any given time.
Vident Financial is launching its second ETF tomorrow after a successful introduction of its first fund, the Vident International Equity ETF (VIDI) in October 2013.
As described on the fund's home page, the Vident Core U.S. Equity ETF (VUSE) is a multi-cap fund which "seeks to represent a portfolio of U.S. companies that adhere to higher standards of of corporate governance and accounting".
VUSE will feature a unique weighting strategy, representing holdings by Vident's principle expressions, placing higher focus on value than market-cap to determine weighting.
David Kotok's Cumberland Advisors is sticking with a strategy that served well in 2013 - remaining fully invested in five ETFs which all outperformed the SPY last year. The five:
The PowerShares Dynamic Market Portfolio (PWC), the Guggenheim S&P 500 Equal Weight ETF (RSP), the Russell 2000 Growth ETF (IWO), the Guggenheim S&P 500 Pure Value ETF (RPV), and the RevenueShares Small Cap ETF (RWJ).
Other than picking the funds, Kotok's team tries to add alpha by adjusting the weighting of holdings as the contents of the ETFs change. "We start the year with these proven and promising core positions, but they may change at any time."
This year, he notes, starts out with the same barely visible rates at the short end of the curve, but the long end is sharply higher - a steeper yield curve suggesting faster economic growth.
The biggest risk to the benign outlook, he says, is D.C. dysfunctionality. "Markets seem to be pricing in a docile political environment, one unperturbed by a government shutdown, a debt-ceiling fight or an external shock from some geopolitical event—North Korea? Iran?—or some other politically induced catastrophe."
The PowerShares Dynamic Market Portfolio (Fund) is based on the Dynamic Market Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is comprised of U.S. stocks from each sector identified as having the greatest capital appreciation pursuant to a proprietary Amex Intellidex Methodology.
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