DENVER--(BUSINESS WIRE)--ALPS, a DST Company focused on asset management and asset servicing, today announced the addition of two new equal sector ETF strategies to its growing lineup of exchange traded funds.
The new funds – ALPS Sector Leaders ETF (SLDR) and ALPS Sector Low Volatility ETF (SLOW) – will track the S-Network Sector Low Volatility and S-Network Sector Leaders indexes respectively. By isolating factors ALPS believes are indicators of growth, quality and low volatility on a sector-by-sector basis, the ETFs seek to provide diversified exposure without the sector bias often inherent in other factor based strategies.
The new ETF offerings expand on the success of ALPS’ dividend-factor focused ETF (SDOG), which recently passed the one billion dollar mark in assets under management.
Mike Akins, Senior Vice President and Director of Exchange Traded Funds at ALPS Advisors, Inc., is responsible for the day-to-day management of the funds, both of which will be included in the ALPS ETF Trust.
“Rather than investing in pure market-cap indexes, which are usually tilted towards specific sectors, our equal sector weighting methodology may provide a better foundation for building diversified portfolios,” says Akins. “As a result, investors and advisors may achieve better risk adjusted returns.”
With the addition of the new SLOW and SLDR funds, the ALPS Factor Series now provides investors with opportunity to seek pure-play exposure to:
- Higher Income/Deep Value (SDOG),
- Lower Volatility (SLOW), and
- Quality and Growth (SLDR).
“It’s become clear that there’s an important place for the equal sector weighting strategies in most investment portfolios, particularly in volatile markets,” says Akins. “We’re excited at the prospect of applying the approach toward these historically proven factors and markets.”
Additional information on the new funds – ALPS Sector Leaders ETF and ALPS Sector Low Volatility ETF – is available at alpsfunds.com.
About ALPS
Through its subsidiary companies, ALPS Holdings, Inc. is a leading provider of innovative investment products and customized servicing solutions to the financial services industry. Founded in 1985, Denver-based ALPS delivers its Asset Gathering and Asset Servicing Solutions through offices in Boston, New York, Seattle, and Toronto. ALPS is a wholly owned subsidiary of Kansas City-based DST Systems, Inc. For more information about ALPS and its services, visit www.alpsinc.com. Information about ALPS products is available at www.alpsfunds.com.
About DST
DST Systems, Inc. is a leading provider of sophisticated information processing and servicing solutions to companies around the world. Through its global enterprise, DST delivers strategically unified transactions and business processing, data management, and customer communications solutions to the asset management, brokerage, retirement, and healthcare markets. Headquartered in Kansas City, MO., DST is a publicly-traded company on the New York Stock Exchange. For more information, visit www.dstsystems.com.
Risks
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus, which contains this and other information, please contact your financial professional or call 1.866.675.2639. Read the prospectus carefully before investing.
ETF shares are not individually redeemable. Investors buy and sell shares of the ETFs on a secondary market. Only market makers or “authorized participants” may trade directly with the Funds, typically in blocks of at least 25,000 shares.
ALPS Sector Leaders ETF Risks
Growth Investing Style Risks
While the Underlying Index attempts to identify stocks with growth characteristics, the securities held by the Fund may not experience such growth, which may affect the performance of the Fund. Past growth is not a guarantee of future growth or yield. Also, securities chosen for growth potential may experience greater volatility than other investment strategies or the overall stock market.
Underlying Sector Risks
The Fund will be exposed to the additional risks associated with its investments in companies of each GICS sector of the Underlying Index. For more on these risks, see “Risks of Underlying Sectors” in the Prospectus.
Replication Management Risks
Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell a security because the security’s issuer was in financial trouble unless that security is removed from the Underlying Index.
ALPS Sector Low Volatility ETF Risks
Underlying Sector Risks
The Fund will be exposed to the additional risks associated with its investments in companies of each GICS sector of the Underlying Index. For more on these risks, see “Risks of Underlying Sectors” in the Prospectus.
Replication Management Risks
Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell a security because the security’s issuer was in financial trouble unless that security is removed from the Underlying Index.
Low Volatility Style Risks
While the Underlying Index attempts to identify securities of companies that have historically provided low volatility, those companies may experience greater than expected volatility due to market, sector or other factors. Also, the market return of low volatility securities, in certain market conditions, may be worse than the market return of other investment strategies or the overall stock market.
All funds mentioned are new and have limited operating history.
S-Network Sector Leaders Index: An index that selects the five stocks in each of nine GICS sectors (Info Tech and Telecom combined) contained in the S&P 500 which statistically demonstrate key characteristics associated with growth and quality.
S-Network Sector Low Volatility Index: An index that selects the five stocks in each of the nine GICS sectors (Info Tech and Telecom combined) contained in the S&P 500 with the lowest annualized trailing twelve month daily price volatility.
One may not invest directly in an index.
ALPS Portfolio Solutions Distributor, Inc. is the distributor for all funds mentioned.
