Compass EMP Funds, the Tennessee-based registered investment advisor and index developer, introduced its fifth exchange traded fund today with the debut of the Compass EMP Developed 500 Enhanced Volatility Weighted Index ETF (NasdaqGM: CIZ).
“CIZ seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the CEMP International 500 Long/Cash Volatility Weighted Index (the “Index”). CIZ’s investment objective and the Index may be changed without shareholder approval,” according to a statement issued by Compass.
The passively managed Compass EMP Developed 500 Enhanced Volatility Weighted Index ETF can provide exposure to 500 of the largest ex-U.S. developed market equities. CIZ’s underlying index only includes those firms that have shown four consecutive quarters of positive earnings and weighted based on each company’s volatility.
Well-known index constituents include Agrium (NYSE: AGU), BHP Billiton (NYSE: BHP) and BP (NYSE: BP), according to Compass data.
In July, Compass entered the ETF arena with the debuts of the Compass EMP U.S. 500 Volatility Weighted Index ETF (NasdaqGM: CFA), the Compass EMP U.S. 500 Enhanced Volatility Weighted Index ETF (NasdaqGM: CFO) and the Compass EMP U.S. EQ Income 100 Enhanced Volatility Weighted Fund (NasdaqGM: CDC).
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.