BROOMALL, Pa.--(BUSINESS WIRE)--ValueShares (www.valueshares.com) today announced that it has launched the ValueShares International Quantitative Value ETF (BATS:IVAL). IVAL complements the successful October 22, 2014 launch of the ValueShares U.S. Quantitative Value ETF (BATS:QVAL). Both QVAL and IVAL seek to purchase the cheapest, highest quality value stocks in the marketplace. QVAL is focused on domestic securities; IVAL is focused on liquid international markets (both developing and emerging).
Founder and CIO, Wesley R. Gray, Ph.D., on IVAL: “The IVAL investment algorithm seeks to take advantage of mispricing caused by irrational investors in international markets. IVAL is an affordable, high-conviction, tax-efficient method that attempts to capture the value anomaly in international markets.”
Dr. Gray started developing his algorithm 12 years ago when he was a finance Ph.D. student at the University of Chicago, where he studied under Nobel Prize Winner, Eugene Fama. The philosophy underlying the algorithm was later published by John Wiley & Sons in a co-authored book, QUANTITATIVE VALUE: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors.
IVAL is among the few concentrated, active, and value-based ETFs currently in the marketplace. IVAL seeks to invest in securities and depository receipts of companies in any industry with ample trading liquidity. The Fund will invest in approximately 50 of the top international equity securities as determined by its quantitative value system. The strategy focuses on developed markets, but also seeks securities in emerging markets if these securities have the liquidity necessary to trade.
“IVAL is concentrated and highly active, unlike most value-based ETFs,” said Dr. Gray. “The market is awash with closet-index strategies which hold 200 or more securities. We seek to deliver a high-conviction value approach backed by extensive academic and market research and a substantive knowledge of the manner in which irrational investor behavior can create mispricing. With IVAL, we can now give our investors access to this strategy with an international lens.” Gray also highlighted the long-term nature of the strategy, “IVAL is a concentrated portfolio and will not track benchmark indices on a tick-by-tick basis in the short run. Investors likely need at least a 5-year horizon to have a chance at success investing in IVAL. Focused value-investing requires patience and discipline.”
IVAL may be best suited for investors and advisors that want a concentrated exposure to what the Advisor believes are the cheapest, highest-quality value firms in the non-U.S. market. The Fund’s Advisor adheres to a value investment philosophy and utilizes computer technology to minimize human biases, read financial statements, interpret past trends, and assess future prospects.
ValueShares is advised by Alpha Architect, an SEC-registered investment firm that seeks to design affordable, active-management strategies for Exchange-Traded Funds and Separately Managed Accounts. Alpha Architect’s strategies are rooted in the science of behavioral finance with a goal of beating behavioral bias. For further information, visit www.ValueShares.com.
Investments involve risk. Principal loss is possible. Redemptions are limited and often commissions are charged on each trade. Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may result in greater fluctuation in the value of the Fund’s Shares and greater risk of loss. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
Value investing is subject to the risk that intrinsic values of investments may not be recognized by the broad market or that their prices may decline. Investments utilizing quantitative methods may perform differently than the market as a result of characteristics and data used and changes in trends. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods.
The Securities and Exchange Commission (SEC) does not approve or disapprove of any investment.
The Fund is distributed by Quasar Distributors, LLC. Fund's investment advisor is Empowered Funds, LLC which is doing business as Alpha Architect. Knight Clearing Services is the fund's lead market maker.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 215-882-9983 or visiting www.ValueShares.com. Read it carefully before investing.
Certain ValueShares ETFs listed on the BATS exchange participate in the BATS Competitive Liquidity Provider ("CLP") Program. The BATS CLP Program is designed to incent market makers to provide liquidity in less actively traded products to help strengthen their investment appeal. Participation in the program may have potential impacts on the price and liquidity of ETFs in the program. In particular, there could be adverse impacts on a purchaser's sale of an ETF that leaves the program. ValueShares pays a fee for each ETF participating in the BATS CLP Program. Payment of a CLP Fee is intended to generate more quotes and trading than might otherwise exist absent this payment. ValueShares International Quantitative Value ETF started 12/10/2014 with a $5,000 CLP Fee. The BATS CLP Program is a pilot program. Unless extended, the BATS CLP Program is scheduled to be terminated on or about July 28, 2015.