ALPS Portfolio Solutions has partnered with RiverFront Investment Group to launch two actively managed exchange traded funds.
The two new actively managed RiverFront Dynamic US Flex-Cap ETF (NYSEArca: RFFC) and RiverFront Dynamic US Dividend Advantage ETF (NYSEArca: RFDA) will both implement value, quality and momentum screens, among others, to generate alpha. Both RFFC and RFDA come with a 0.52% expense ratio.
“RiverFront is guided by a philosophy that embraces the dynamic nature of the complex global markets through which it navigates daily,” according to RiverFront Investment Group. “This means we are in a constant state of action – moving fluidly and rapidly, seizing opportunities without losing sight of the long-term strategy.”
Specifically, the two funds will consider multiple proprietary factors like price-to-book value, a company’s cash as a percentage of the company’s market capitalization when determining quality and a security’s three-month relative price change in determining momentum, according to the funds’ prospectus sheet. Securities with the highest scores on these factors are given greater weights within the ETFs’ portfolios.
Related: How to Quantify Quality in an ETF
The two ETFs will also limit their universe of companies to U.S. small-, mid- and large-cap stocks.