ProShares launched the ProShares Equities for Rising Rates ETF (EQRR), which it called “the first U.S. equity ETF specifically designed to outperform traditional large-cap indexes, such as the S&P 500, in a rising interest rate environment.”
The fund, listed on Nasdaq, aims to track the Nasdaq U.S. Large Cap Equities for Rising Rates Index.
“EQRR is for investors who expect rising interest rates and want to outperform traditional large-cap indexes as rates go up,” Michael L. Sapir, cofounder and CEO of ProShare Advisors, said in a statement. “EQRR takes those sectors most positively correlated with interest rates, then within those sectors invests in the companies that have tended to outperform during periods of rising rates.”
The fund aims to track the performance of the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The methodology for the Nasdaq U.S. Large Cap Equities for Rising Rates Index starts with the 500 largest listed U.S. stocks, then selects the five U.S. large-cap sectors that have most recently demonstrated the highest correlation to weekly changes in 10-year U.S. Treasury yields. It then identifies the top 10 stocks in each sector that have the highest correlation of relative performance to changes in the 10-Year yield. Stocks in sectors with a higher correlation to rising rates have a heavier weighting in the index. This process is repeated quarterly to maintain a portfolio of 50 stocks.
The resulting portfolio aims to provide relative outperformance compared to traditional large-cap indexes during periods of rising U.S. Treasury interest rates.
Aria RetireOne to Provide Fee-Based Variable Annuity From Great-West Financial
Great-West Financial and Aria Retirement Solutions announced that “Great-West Smart Track Advisor Variable Annuity” is now available on Aria’s RetireOne platform through the firm’s extensive reach to fee-based advisors.
This variable annuity seeks to provide investment advisors with a flexible and customizable solution for clients seeking investment growth and retirement income.
Smart Track Advisor is a low-cost dual-strategy variable annuity and is designed to provide clients with an investment strategy with more than 90 subaccounts; withdrawal rates as high as 6% at age 65 for life; and the ability to add the living benefit rider after issue to keep costs down until guaranteed income is needed.
In addition, Smart Track Advisor allows advisors to choose to bill for the advisory fee separately or have the fee (up to 1.50%) deducted from the annuity contract without disrupting any guarantees.
Trust Company of America Partners with Financial Planning Software RightCapital
Trust Company of America announced a full integration with RightCapital, a financial planning tool for advisors and their clients that provides advisors with the ability to create custom, comprehensive financial plans in 10 minutes.
As a result of this integration, TCA advisors can now offer their clients goals-based and cash flow-based retirement plans, detailed income and estate tax projections and multiple scenario comparisons that are designed to create a more interactive, informative client experience.
Using RightCapital, TCA’s advisors can perform retirement planning Monte Carlo simulations, Social Security optimizations and systematic stress tests.
EQIS Introduces Two New Income Model Portfolios
EQIS Capital, a fee-based turnkey asset management platform (TAMP) for financial advisors, is introducing two new income model portfolios: EQIS Allocation Scientifically-Engineered (EAS-E) Strategic Income Model and Dynamic Distribution Strategy.
The EQIS Strategic Income Portfolio is designed to generate a steady income and the EQIS Dynamic Distribution Strategy is designed to sustain client distributions.
Each income model portfolio consists of multiple asset managers with varying methodologies.
The EAS-E Strategic Income Model’s core is invested mostly in strategically managed domestic high yield equities, Satellite categories include ultra high yield, real estate, commodities and specific industrial sectors. .
The EAS-E Dynamic Distribution Strategy’s core is invested mostly in tactically managed domestic high yield equities. Satellite investments include ultra high yield, real estate, commodities, and specific industrial sectors.
The fixed Income component of both model portfolios consists of a variety of mostly tactically managed securities such as preferred stocks, foreign fixed income, domestic corporate bonds, and U.S. treasuries.
—Read last week’s portfolio product roundup here: Seward & Kissel Launches Regulatory Compliance Service: Portfolio Products