Finding Robust Smart Beta Solutions

February 25, 2015

 

Disclaimer

An investor should consider the investment objectives, risks, charges and expenses of the ETFs carefully before investing. To obtain a prospectus containing this and other important information, call 1-212-918-4954 or 844-ETFS-Buy (844-383-7289) or visit www.etfsecurities.com. Read the prospectus carefully before investing.

 

Fund Risk: There are risks associated with investing including possible loss of principal. The prices of the securities in which the Funds invest may decline for a number of reasons, including in response to economic developments and perceptions about the creditworthiness of individual issuers. Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities. For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. The Funds do not attempt to outperform an Index or take defensive positions in declining markets. Past performance does not guarantee future results. There can be no assurance that the Funds' investment objectives will be achieved. Please read the Funds' prospectus for specific details regarding the Funds' risk profile.

 

The Scientific Beta United States Multi-Beta Multi-Strategy Equal-Weight Index and the Scientific Beta Developed Europe Multi-Beta Multi-Strategy Equal-Weight Index are the intellectual property (including registered trademarks) of EDHEC Risk Institute Asia Ltd and/or its licensors, which is used under license within the framework of ERI Scientific Beta activity. The ETFS Diversified-Factor Large Cap US Index Fund and the ETFS Diversified-Factor Developed Europe Index Fund that replicate fully or partially the Scientific Beta United States Multi-Beta Multi-Strategy Equal-Weight Index and the Scientific Beta Developed Europe Multi-Beta Multi-Strategy Equal-Weight Index are not sponsored, endorsed, sold or promoted by EDHEC Risk Institute Asia Ltd and its licensors and neither EDHEC Risk Institute ASIA Ltd nor its licensors shall have any liability with respect thereto.

 

ETFS Diversified-Factor U.S. Large Cap Index Fund (SBUS) and ETFS Diversified-Factor Developed Europe Index Fund (SBEU) trade on the NYSE Arca, Inc.

 

The S&P 500 Index is a capitalization-weighted index of 500 stocks selected by the Standard & Poor's Index Committee designed to represent the performance of the leading industries in the U.S. economy.

 

The S&P 500 EW Index is a constituent equal-weight version of the S&P 500.

 

The FTSE RAFI 1000 US Index uses specific fundamental factors that weights index constituents rather than market-cap.

 

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

 

A smart-beta index is an index designed to outperform a widely followed market-cap-weighted benchmark index normally by altering the constituent weights.

 

Modern portfolio theory is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

 

Mike McGlone, CFA, Director-Research, ETF Securities, is a registered representative of ALPS Distributors, Inc.

 

The ETFs are new products with a limited operating history.

 

Indexes are unmanaged and one cannot invest directly in an index.

 

Investors buy and sell shares on a secondary market (i.e., not directly from the Trust). Only market makers or "authorized participants" may trade directly with the funds, typically in blocks of 50K to 100K shares.

 

ALPS is not affiliated with ETF Securities or EDHEC Risk Institute ASIA Ltd.

 

ALPS Distributors, Inc. is the distributor for the ETFS Trust.

 

ETFS 000725 12/31/2015

 

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