SPA ETFs has launched a new series of six exchange-traded funds with underlying fundamentally driven indices designed by U.S. research company MarketGrader to beat the market on the American Stock Exchange. The first three ETFs are based on MarketGrader’s “Core” indices, baskets of 40, 100 and 200 top-rated North American securities; the three “Cap” indices are based on the top 100 North American stocks within each market capitalization category:o SPA MarketGrader 40 (SFV)o SPA MarketGrader 100 (SIH)o SPA MarketGrader 200 (SNB)o SPA MarketGrader Small Cap (SSK)o SPA MarketGrader Mid Cap (SVD)o SPA MarketGrader Large Cap (SZG)
According to the prospectus, all six funds will charge annual expense ratios of 0.85 percent. Underlying call/put options on each of the new ETFs are expected to follow.
“This is a very exciting time for ETFs in the U.S. market, with more than 900 ETFs launched worldwide, and we are thrilled to launch the SPA ETFs on the American Stock Exchange since the SPA ETFs possess unique qualities in this crowded space,” said Daniel Freedman, director, SPA ETFs.
“We have found in MarketGrader a fundamentally based methodology system that has a solid performance history, and we are confident that this will provide investors with an investment tool that will stand out among this growing market.”
All the stocks in each basket have an equal weighting and use 24 quantitative filters within four main areas (growth, value, profitability and cash flow) to thoroughly evaluate more than 5,700 North American stocks on a fundamental basis.
The MarketGrader 40 ETF (SFV) is rebalanced quarterly; all the other funds are rebalanced semi-annually.
This launch follows SPA ETFs’ listing of the first set of fundamental ETFs on the London Stock Exchange (LSE) on September 12.
SPA ETFs is affiliated with London & Capital, an independent investment firm that oversees $3.5 billion in assets.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.