Cambria Investments, the firm co-founded by Meb Faber, has partnered with TD Ameritrade to offer a nearly zero-cost turnkey asset management program alternative through its Trinity Portfolios on TD’s Institutional Model Market Center.
The Market Center, which launched in February, is a new service that allows advisors to personalize client portfolios without the day-to-day operation burden of having to build their own models, instead giving them access to established models from well-known asset management firms.
The marketplace offers access to these models at no fee. On top of that, Cambria’s quantitative, rules-based Trinity portfolios have no management fee.
Cambria offers six unique Trinity Portfolios, which ranging from most conservative (Trinity 1) to most aggressive (Trinity 6).
Exponential Launches Reverse Cap Weighted U.S. ETF
Exponential ETFs launched the Reverse Cap Weighted U.S. ETF (RVRS), which offers exposure to the S&P 500 stocks weighted by the inverse of their relative market capitalization.
The strategy brings the weighted average market capitalization of the index down from $162 billion to $16 billion, while using the exact same stocks.
RVRS – a rules-based, passive fund – tracks the Reverse Cap Weighted U.S. Large Cap Index comprising all 500 publicly traded companies in the S&P 500.
The ETF has an expense ratio of 0.29% and trades on the Chicago Board Options Exchange.
S&P Dow Jones Indices Debuts Carbon Metrics
S&P Dow Jones Indices is now publishing carbon metrics on the majority of its equity indexes, including the S&P Global 1200, S&P 500, Dow Jones industrial average and environmentally focused indexes including the S&P Global 1200 Carbon Efficient Index Family and the S&P Global 1200 Fossil Fuel Free Index Family.
S&P DJI is the first index provider to publicly display carbon metrics as standard alongside financial data on its indexes on a monthly basis. The initiative is intended to help market participants understand, measure and manage carbon risk.
There are three metrics currently available for the indexes, using Trucost data and analysis: carbon footprint, which is the metric tons of CO2e (carbon dioxide equivalent) per $1 million invested against the index; carbon efficiency, which is the metric tons of CO2e per $1 million of a company’s revenues against the index; and fossil fuel reserves, which is the greenhouse gas emissions that could be generated if the proven and probable fossil fuel reserves owned by constituents were burned, per $1 million invested.
Deutsche Asset Management Lowers Expense Ratio for HYLB
Deutsche Asset Management announced the following voluntary reduction, for a period of at least one year, of the net expense ratio for the Xtrackers USD High Yield Corporate Bond exchange-traded fund (HYLB).
The new net expense ratio is 20 basis points, down from 25 basis points.
The fee change, effective Oct. 27, re-establishes the fund’s status as the “most cost-efficient high-yield ETF in the US market,” according to Deutsche AM.
Launched in December, HYLB has grown to more than $280 million in assets as of Oct. 25.
Cboe Welcomes New Issuer Sage Advisory to Marketplace with Launch of ESG ETF
Cboe Global Markets welcomed new issuer Sage Advisory to the Cboe ETF Marketplace with the launch of the Sage ESG Intermediate Credit ETF (GUDB).
The fund seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Sage ESG Intermediate Credit Index, as launched in August. The ETF generally will invest at least 80% of its total assets in the component securities of the Sage ESG Intermediate Credit Index.
The index consists of corporate bonds selected by Sage from the Barclays Capital U.S. Intermediate Credit Bond Index that meet Sage’s environmental, social and governance (ESG) criteria. The index uses Sage’s ESG factor analysis framework and rules-based selection process. It is designed to maximize exposure to positive ESG characteristics, while maintaining a high level of liquidity.
IHS Markit and KRX Launch Two Korean Stock Index Based on Dividend Forecasting Metrics
IHS Markit announced the launch of two new stock indexes — KRX-IHS Markit KOSPI 200 Dividend Forecast Yield Top 30 and KRX-IHS Markit KOSPI 200 Dividend Forecast Growth Top 30 — in alliance with Korea Exchange (KRX), a leading cash and derivatives exchange based in Seoul, South Korea.
The KRX-IHS Markit indices enable ETFs and other market participants to track publicly traded Korean companies with the strongest dividend prospects based on IHS Markit research. Both indices are derived from the KOSPI 200, the flagship KRX index, using the forward-looking figures of Top 30 dividend performers.
WisdomTree Selects FinMason to Power New Investor Tools
FinMason announced a multi-year agreement with WisdomTree Investments, an ETF and exchange-traded product (“ETP”) sponsor and asset manager driven by research and technology.
Under the terms of the multi-year deal, FinMason will deliver institutional-grade analytics to WisdomTree’s new Digital Portfolio Developer via its FinRiver API platform.
FinRiver’s simple API runs thousands of calculations on portfolios in milliseconds. Users can instantaneously run risk and performance metrics, aggregate factor exposures, do scenario analysis and stress testing, and conduct Monte Carlo simulations – with up to 700 analytical items in all.
The power behind FinRiver is the Algonath, a highly-scaled computational complex that analyzes over six million individual investments globally. It is a data agnostic, intelligent platform that can calculate a standard analytical payload on a 50-asset portfolio is less than 20 milliseconds.