CornerCap Fundametrics Large-Cap ETF (FUNL)
New ETF relies on more than 120 fundamental factors
Atlanta-based CornerCap Wealth Advisors entered the ETF market in August with the launch of an actively managed, factor-based ETF. The CornerCap Fundametrics Large-Cap ETF (FUNL) targets companies that fall within the market capitalization range of the large-cap Russell 1000 Index.
FUNL comes with an expense ratio of 0.50% and lists on Cboe Global Markets, the parent company of ETF.com.
The new ETF relies on CornerCap’s proprietary in-house quantitative research system, which evaluates companies based on more than 120 fundamental factors, to sort companies into peer groups, which are determined primarily by valuation but also by additional criteria in order to arrive at an “optimized risk adjusted mix.”
“We create models that really capture the long term factor advantages of these different peer groups,” said Jeffrey Moeller, CornerCap’s director of research.
Portfolio trading decisions are made using the Fundametrics Alpha Composite and the Fundametrics Financial Warnings Overlay, which are, respectively, designed to identify those stocks likely to outperform and those facing risks that threaten their performance, according to the prospectus. It also notes that the Alpha Composite focuses on relative valuation, earnings growth rates and cash flow measurements.
Source: ETF.com. Data and information as of 8/31/2020.
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