Ossiam Launches 2nd Shiller CAPE Ratio Sector ETF

The second fund tracking an index designed by Professor Robert Shiller concentrates on U.S. equity sectors  

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Editor, etf.com Europe
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Reviewed by: Rachael Revesz
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Edited by: Rachael Revesz

Ossiam has launched its second exchange traded fund (ETF) which tracks an index devised by Professor Robert Shiller and his cyclically-adjusted price to earnings (CAPE) ratio, first brought to market in 1981.

The Ossiam Shiller Barclays CAPE US Sector Value TR UCITS ETF 1C (USD) was seeded with $5.6 million and is the second fund in the world to be based on the Shiller Barclays CAPE Sector indexes. It aims to identify stocks which become over and undervalued, by comparing the current value of a portfolio to ithe average nflation-adjusted aggregated earnings over ten years to remove the effects of business cycles.

The underlying index has a bias to value stocks, with the aim of picking the right industries at the right point in time, according to a note from the provider.

Bruno Poulin, CEO of Ossiam, said: “Our launch of the first Ossiam Shiller Barclays CAPE ETF has gathered a lot of interest from the UK market and we expect the latest ETF to continue this trend.“

This ETF follows the launch of a similar fund in February which aims to rotate sectors across European equities, using the same methodology.

The ETF trades on the London Stock Exchange in USD (ticker UCAP) and in Sterling (CAPU), and has annual fees of 0.65 percent.

It is distributed in the UK through Natixis Global Asset Management.

 

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.