DARIEN, Conn.--(BUSINESS WIRE)--VelocityShares LLC, developer of exchange traded products (ETPs) for sophisticated investors, announced today the launch of the VelocityShares Equal Risk Weighed Large Cap ETF (“ERW”). Equal risk weighting is an innovative and academically rigorous alternative to both traditional market cap weighted indices and overly simplistic “low volatility” indices.
“Investors are interested in low volatility equity portfolios, and equal risk weighting represents an important step forward as a means of intelligently allocating to low volatility stocks,” said Nick Cherney, Chief Investment Officer and Co-founder of VelocityShares. “ERW is a further example of our commitment to delivering sophisticated investment instruments to the exchange traded market.”
The VelocityShares Equal Risk Weighted Large Cap ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the VelocityShares Equal Risk Weighted Large Cap Index (the “Index”). The Index is designed to reflect the performance of a portfolio holding a weighted exposure to stocks comprising the S&P 500® Index. The target weighting of each stock is determined using a proprietary risk-weighting methodology that measures a stock’s risk exposure and then weights the positions such that each stock is expected to contribute the same level of risk to the Index. The Index is sponsored by VelocityShares Index & Calculation Services, a division of VelocityShares LLC.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-877-583-5624 or download the file from www.VelocitySharesETFs.com. Read the prospectus carefully before you invest. Past performance does not guarantee future results.
RISKS: Investing in the VelocityShares Equal Risk Weighted Large Cap ETF (ETF) involves risks related to strategy, volatility as a measure of risk, index methodology limitations, concentration risk, performance risk, rebalancing frequency limitations, fixed algorithmic model parameters, and optimization model precision. ETFs are subject to risk similar to those of stocks including those regarding short selling and margin account maintenance. The fund has limited operating history. Please see prospectus for discussion of risks. One cannot invest directly in an index.
The funds are not insured by the FDIC; are not guaranteed bank deposits; and are subject to investment risks, including the possible loss of principal. Ordinary brokerage commissions apply.
Shares are not individually redeemable. Investors buy and sell shares of VelocityShares Tail Risk Hedged Large Cap ETF and the VelocityShares Volatility Hedged Large Cap ETF (together, the “ETFs”) on a secondary market. Only Authorized Participants may trade directly with the ETFs, typically in blocks of 50,000 shares.
Exchange Traded Concepts, LLC (ETC) is the investment adviser to the ETF. SEI Investments Distribution Co. (SIDCO) is the distributor of ETF. Neither ETC nor SIDCO is affiliated with VelocityShares.
“VelocityShares”, the VelocityShares logo, VelocityShares Equal Risk Weighted Large Cap Index are trademarks of VelocityShares Index & Calculation Services, a division of VelocityShares, LLC.
Neither VelocityShares Index & Calculation Services, VelocityShares, LLC (together, “VelocityShares”) nor any other party makes any representation or warranty, express or implied, to the owners of any securities which may be linked, or which may be valued with reference to, any VelocityShares index, or members of the public regarding the advisability of investing in such securities generally or the similarities or variations between the performance of the index and the performance of such underlying securities.
VelocityShares is the licensor of certain trademarks, service marks and trade names of VelocityShares LLC and of certain Indices, which are determined, composed and calculated by VelocityShares without regard to the issuer of the any securities which may be linked to such indices. Neither VelocityShares nor any other party guarantees the accuracy and/or the completeness of the indices or any date included therein. VelocityShares disclaims all warranties of merchantability or fitness for any particular purpose with respect to the indices or any data included therein.
Nothing herein constitutes a solicitation, offer or recommendation by VelocityShares or its affiliates to buy or sell securities. VelocityShares does not render investment, tax, accounting or legal advice. Investors should review the prospectus for each security and make their own investment decisions based on their specific investment objectives and financial position and after consulting independent tax, accounting, legal and financial advisors.
About Exchange Traded Concepts
ETC has carved out a niche as a portal to launch new, custom exchange-traded funds efficiently and cost-effectively through a complete turnkey solution. ETC is a private-label ETF advisor with passive exemptive relief to launch both domestic and international equity exchange traded funds or ETFs under the Investment Company Act of 1940.
Investment managers, independent advisors, foreign managers and others seeking to launch an ETF for their strategy have the opportunity to build awareness and recognition for their brand as a private label ETF and, for a relatively low initial investment, launch an ETF in approximately one-third of the time it would take to launch an ETF from scratch.
ETC’s ETF-in-a-Box™ Solution is a turnkey platform that provides time-sensitive and cost-effective methods to bring an exchange-traded fund to market. Seasoned ETF professionals have the operational and regulatory experience plus the industry contacts needed to navigate the complexities of launching and managing an ETF.
ETC has developed strategic relationships with other ETF service providers to assist ETC’s sub-advisors in navigating the exchange-traded fund launch process with the guidance necessary to maintain regulatory compliance.
ETC can assist your firm to successfully launch an ETF strategy. For more information, please go to www.ExchangeTradedConcepts.com.
About VelocityShares
VelocityShares® is a leader in designing exchange-traded products and volatility-based strategies for institutional investors. We are focused on developing and delivering innovative products that provide sophisticated investors with either long-term investment strategies or short-term risk management instruments.
Our success results from delivering innovative, efficient, and insightful products for a wide range of investors. We have significant experience across asset classes on both the buy- and sell-sides of the financial markets. Employing that combined knowledge and insight enables the development and delivery of ground-breaking products.
The VelocityShares Group includes VLS Securities LLC, a US-registered broker-dealer and wholly owned subsidiary of VelocityShares LLC.
