ETF Securities and Scientific Beta launch two Diversified-Factor Equity Exchange Traded Funds

  • First Diversified-Factor ETFs to provide exposure to US and European equities in the US
  • Uses Scientific Beta index methodologies

NEW YORK--()--ETF Securities, one of the world's leading, independent providers of Exchange-Traded Products (ETPs) has launched two new Exchange Traded Funds (ETFs) based on Scientific Beta’s multi-factor, multi-strategy indices. The new ETFs are the ETFS Diversified-Factor U.S. Large Cap Index Fund (SBUS) and the ETFS Diversified-Factor Developed Europe Index Fund (SBEU). Both products are listed on the New York Stock Exchange (NYSE).

Scientific Beta is an index provider specializing in smart beta solutions and is part of the EDHEC Risk Institute, an entity that works closely with institutions to implement academic research and improve their investment and risk management process.

Scientific Beta has developed smart beta solutions to address simultaneously the two primary issues of market cap weighted indices, i.e. exposure towards non-performing market factors and lack of diversification1. This comprehensive approach differs from most of the other smart beta indices which focus on either one of the issues, and generally results in sub-optimal risk/return performances.

Scientific Beta indices select stocks based on factors well documented by academic research (low volatility, valuation, momentum and size) and use a proprietary weighting strategy to enhance the diversification, with the objective of providing better risk adjusted performances than other established benchmarks such as the S&P 500 and Stoxx Europe 600.

These two new products further expand the investment options offered to the ETF Securities customer base in the United States. We are dedicated to working with our customers to develop new solutions that help them better manage and diversify their portfolios.

Mike McGlone, Director of Research at ETF Securities US, commented:

“We are very proud to collaborate with Scientific Beta and bring to market the latest academic research with regard to smart beta indices. Private investors now have access to solutions previously only available to large institutions, through ETFs that track indices whose methodology is fully transparent.”

Eric Shirbini, Global Product Specialist with ERI Scientific Beta, added:

“The Scientific Beta Multi-Beta Multi-Strategy Equal Weight Indexes allow equity investors to expand their opportunity set beyond the standard equity premium. Within each factor tilt, ERI Scientific Beta applies smart weighting methodologies to selected stocks so that the indices are not only exposed to the relevant factor, but also well diversified. We are delighted that ETF Securities have decided to make the US and Developed Europe versions of these indexes available to US investors through the attractive medium of ETFs.”

For more information on the products, please click here.

Product information

Security   Exchange   Base currency   CUSIP   Bloomberg  

Total
Expense
Ratio

ETFS Diversified-Factor U.S. Large Cap Index Fund

 

NYSE

 

USD

 

26923J 305

 

SBUS

 

0.40%

ETFS Diversified-Factor Developed Europe Index Fund

 

NYSE

 

USD

 

26923J 404

 

SBEU

 

0.40%

 

About ETF Securities

ETF Securities is one of the world’s leading providers of exchange-traded investment products and a pioneer in exchange-traded commodities. We are dedicated to developing liquid, transparent investment solutions that can be traded on world stock exchanges. The company has a strong history of product innovation and this remains a key tenet of our guiding philosophy. Our management team listed the world’s first gold exchange-traded commodity in 20032, and many other market-leading investment solutions have since followed. Today ETF Securities offers what we believe to be the world’s most comprehensive range of exchange-traded commodities.

To learn more about ETF Securities go to: www.etfsecurities.com

About ERI Scientific Beta

ERI Scientific Beta aims to be the first provider of a smart beta indices platform to help investors understand and invest in advanced beta equity strategies. It has three principles:

  • Choice: A multitude of strategies are available allowing users to build their own benchmark, choosing the risks to which they wish, or do not wish, to be exposed. This approach, which makes investors responsible for their own risk choices, referred to as Smart Beta 2.0, is the core component of the index offerings proposed by ERI Scientific Beta.
  • Transparency: The rules for all of the Scientific Beta series are replicable and transparent. The track records of the Scientific Beta indices can be checked and justified through unrestricted access to historical compositions.
  • Clarity: Exhaustive explanations of construction methodologies are provided, as well as detailed performance and risk analytics.

Established by EDHEC-Risk Institute, one of the very top academic institutions in the field of fundamental and applied research for the investment industry, ERI Scientific Beta shares the same concern for scientific rigour and veracity, which it applies to all the services that it offers investors and asset managers.

Part of EDHEC Business School, a not-for-profit organisation, EDHEC-Risk Institute has sought to provide the ERI Scientific Beta services in the best possible economic conditions.

ETF000705/ 12/31/15

Important Information

Mike McGlone is a registered representative of ALPS Distributors Inc.

Eric Shirbini is not affiliated with either ETF Securities or ALPS Distributors Inc.

ETFS Diversified-Factor U.S. Large Cap Index Fund seeks to track the price and yield performance, before fees and expenses, of the Scientific Beta United States Multi-Beta Multi-Strategy Equal Weight Index.

ETFS Diversified-Factor Developed Europe Index Fund seeks to track the price and yield performance, before fees and expenses, of the Scientific Beta Developed Europe Multi-Beta Multi-Strategy Equal Weight Index.

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.

Diversification does not eliminate the risk of experiencing investment losses.

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 Stoxx Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region.

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.

The ETFs are new products with a limited operating history.

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

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

Holdings are disclosed daily on etfsecurities.com

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

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

1 Diversification does not eliminate the risk of experiencing investment losses.

2 ETF Securities listed the world’s first gold exchange-traded commodity in 2003

Contacts

Ketchum PR:
Paula DeGangi, +1-646-935-4029
Paula.DeGangi@ketchum.com
or
ETF Securities Press Office:
Tel: +44 20 7448 4330
press@etfsecurities.com
or
ERI Scientific Beta Press Office:
Séverine Cibelly, +33-493-187-863
severine.cibelly@scientificbeta.com

Release Summary

ETF Securities and Scientific Beta launch two Diversified-Factor Equity Exchange Traded Funds

Contacts

Ketchum PR:
Paula DeGangi, +1-646-935-4029
Paula.DeGangi@ketchum.com
or
ETF Securities Press Office:
Tel: +44 20 7448 4330
press@etfsecurities.com
or
ERI Scientific Beta Press Office:
Séverine Cibelly, +33-493-187-863
severine.cibelly@scientificbeta.com