Top Performing Multifactor ETFs

February 08, 2017

First Trust RBA American Industrial Renaissance ETF (AIRR) – up 63%

AIRR is a U.S. equity fund that tracks a multifactor-selected and proprietary-weighted index of industrial companies that tap into the expertise of well-known active manager Richard Bernstein Advisors.

The portfolio, tilted toward small- and midcap names, looks for service and support firms, as well as community banks that would benefit from any sort of industrial “revival,” according to our data.

The index underlying the strategy, the Richard Bernstein Advisors American Industrial Renaissance Index, excludes companies that do 25% or more of their sales outside the U.S., and it also looks at 12-month forward earnings estimates as a selection screen, according to First Trust. Individual securities can weight no more than 4% of the mix at rebalance.

Launched in 2014, AIRR has $188 million in assets. The fund carries a 0.70% expense ratio, and trades with an average spread of 0.20%, so total cost of ownership and trade of this ETF is about $90 per $10,000 invested.

PowerShares Russell 2000 Pure Value Portfolio (PXSV) – up 47%

PXSV is a U.S. small-cap equity value fund that selects and weights securities through a multifactor approach that looks at price to book, historical sales growth and growth forecast metrics. This ETF “remains one of the few ‘pure’ value funds in the small-cap space,” according to our data.

Launched in 2005, PXSV has $92 million in assets. The fund has an expense ratio of 0.39%, and with an average trading spread of 0.25%, its total cost of ownership is $64 per $10,000 invested.

 

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