Compass EMP, a Tennessee-based mutual fund firm, on July 2 launched its first ETFs, three smart-beta funds that seek to isolate lower-volatility stocks from a broader universe of U.S. equities.
The new funds, their tickers and net expense ratios are:
- Compass EMP U.S. EQ Income 100 Enhanced Volatility Weighted Fund (CDC), 0.68 percent
- Compass EMP U.S. 500 Volatility Weighted Index ETF (CFA), 0.58 percent
- Compass EMP U.S. 500 Enhanced Volatility Weighted Index ETF (CFO), 0.68 percent
The funds’ portfolios generally consist of the common stocks of the largest U.S. companies by market capitalization with consistent positive earnings (at least its four most recent quarters), and weighted based on the volatility of each stock, according to the regulatory filing. Stocks with lower volatility receive a higher weighting, and stocks with higher volatility receive a lower weighting.