Daily ETF Watch: Behavioral Fund Filing

March 30, 2016

Guggenheim Investments has filed for two ETFs that seek to avoid stocks with prices that exhibit behavioral biases. The Guggenheim Behavioral Large Cap ETF and Guggenheim Behavioral Small Cap ETF track indexes designed to capture the performance of stocks with prices that are supported by their respective companies’ potential future performance, according to the prospectus.

Guggenheim uses its in-house Behavioral Risk Indicator to identify companies whose stock prices remain close to their intrinsic values and that have not been distorted by behavioral biases. Companies with a low BRI score tend to be priced closer to their intrinsic values than stocks with higher BRI scores.

The large-cap fund’s index selects its components from the stocks in the S&P 500, while the small-cap fund derives its holdings from the S&P SmallCap 600 Index.

The two ETFs are slated to list on the NYSE Arca, with projected expense ratios of 0.35%. However, the filing did not include any tickers.

Closures

Two of the iShares target-maturity-bond ETFs saw their last day of trading yesterday. Both were set to mature at the end of March.

  • iShares iBonds Mar 2016 Corporate ETF (IBDA)
  • iShares iBonds Mar 2016 Corporate Ex-Financials (IBCB)

Contact Heather Bell at [email protected].

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