Fund will be self-indexed using fundamental methodology.
The income-generating fund is smack in the middle of a number of ETF industry trends.
ALPS doubles its footprint as an ETF sponsor with the launch of four momentum funds.
ALPS, the Denver-based exchange-traded fund distributor that also sponsors four ETFs, filed paperwork with the Securities and Exchange Commission to market four additional ETFs that use momentum-focused indexes that span the globe and target separate asset classes.
Together, the four funds appear to represent the latest attempt by an ETF firm to provide access to different portions of the investment universe using enhanced beta indexation, in this case a securities screen that isolated momentum.
The ETFs and their respective strategies are:
The Goldman methodology for the latter large-cap ETF selects a target of 50 stocks for inclusion in the index from a subset of U.S. equity securities within the Russell 1000 Index that meet the minimum analysts coverage, liquidity and market capitalization requirements set forth below. The Index is rebalanced semiannually.
The first three funds each use a Goldman index methodology seeks to provide exposure to price momentum of these equity and U.S. fixed income markets by reflecting the combination of underlying ETF weightings that would have provided the highest six-month historical return, subject to the certain constraints on maximum and minimum weights and volatility controls.
The three indexes are rebalanced monthly, but may also be rebalanced as frequently as daily if the daily volatility control is triggered.
In its paperwork, ALPS didn’t include the ticker symbols or the proposed annual expense ratios of the four ETFs.
The four existing ETFs the company already sponsors are:
With the market rising, is it time to chase some alpha with the new volatility ETF ALPS has in the works?
Company increases its ETF offerings from one to six ETFs.
PowerShares once again broke new ground in the exchange-traded fund industry with the launch of the first ETFs of ETFs, the PowerShares Autonomic Global Asset Portfolios. The three funds were launched May 20 and track indexes of ETFs designed by Boston-based advisory firm New Frontier Advisors (NFA).
ALPS Holdings Inc.—known mainly as a service provider to the investment management industry—rolled out its first ETF, the Cohen & Steers Global Realty Majors ETF (AMEX: GRI), in early May. GRI has an underlying index that covers 75 real estate companies from developed markets in North America, the Asia-Pacific region and Europe.