While VALX has only been trading for ten weeks, data suggests it has appreciated about 4% and while the ADV is <20,000 shares, from an underlying index standpoint it is quite liquid, with block/position bids for 100,000 shares coming in within 2 cents of the NBBO.
The growth aspect of small and mid-cap weightings, coupled with the manager’s fundamental decision-making process in a product, make VALX an ETF to watch closely and the 28 day rebalance allows investors to leave their money in the fund and allow the manager to simply follow model changes in seeking out-performance to the general market. Year to date, we see more than $11 million entering the fund via creation activity, which is notable given the December 10th, 2014 fund inception date.
Validea Market Legends ETF
This article was written by Street One Finanical Vice President of ETF & Equity Sales Alex Ruhfass.
For more information on Street One ETF market commentary and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected]
Street One Financial is an educational/research firm utilizing the Broker Dealer services of Precision Securities, a FINRA registered Broker/Dealer.