In August, the firm added its fourth ETF, the Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF (NasdaqGM: CSF). [Compass EMP Adds Fourth ETF]
“It’s exciting to introduce an innovative international, smart beta product that seeks to outperform both traditional indexes as well as active ETFs over the long-term,” said Stephen Hammers, Chief Investment Officer at Compass EMP, in a statement. “Our latest ETF is focused on the largest 500 international equities, and may offer performance enhancements through fundamental criteria combined with its distinct securities volatility weighting. In addition, this ETF has the ability to liquidate 75% of the securities in the index to cash in the event of a market decline.”
The ability to move to cash is a hallmark of several of Compass’ other ETF offerings. As stocks rebound from that hypothetical decline, the ETFs’ underlying indices begin reducing cash and adding equity exposure, providing investors with the advantages of dollar-cost averaging. [Compass EMP Enters ETF Arena With Three Unique Funds]
ETF Trends editorial team contributed to this post.