Deutsche Unveils Quality Value ETF
New fund tracks an index derived from the Russell 1000.
Deutsche Asset Management rolled out a new ETF today that targets the quality and value factors. The Xtrackers Russell 1000 US QARP ETF (QARP) tracks an index derived from the Russell 1000 Index.
QARP comes with an expense ratio of 0.19% and lists on the NYSE Arca.
The fund’s index methodology uses valuation ratios to determine a company’s exposure to the value factor, and uses leverage and profitability to determine a company’s exposure to quality. Companies that do not display significant exposure to both factors are removed from the universe, while those that are included are weighted based on their factor exposures. However, quality exposure is given twice as much importance when determining a company’s weighting, the prospectus says.
As of mid-January, the 1,000 components in the Russell 1000 had been winnowed down to 289 stocks in QARP’s underlying index. The largest sector was consumer discretionary at 20.6%, followed by information technology and industrials at 18.5% and 17.7%, respectively.
